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            C L A S S   A C T I O N   R E P O R T E R
            Friday, October 12, 2001, Vol. 3, No. 200
                           Headlines
ACCESS MEDPLUS: Doctors Sue Managed Care Firm Over Underpayments 
ADVANCED DEPOSITION: Berman DeValerio Lodges Securities Suit in MA
ALLIANCE FUND: Sued For Securities Violation, Breach of Fiduciary Duty
ART TECHNOLOGY: Schiffrin Barroway Commences Securities Suit in MA
ART TECHNOLOGY: Cauley Geller Lodges Securities Suit in Massachusetts
CLARENT CORPORATION: Wolf Haldenstein Lodges N.D. CA Securities Suit 
CYBERSOURCE CORPORATION: Bernstein Liebhard Files NY Securities Suit 
DIGIMARC INC.: Marc Henzel Commences Securities Suit in S.D. New York
eTOYS INC.: Marc Henzel Commences Securities Suit in S.D. New York
FORD MOTOR: Court Moves Certification Hearing To November
FREEMARKETS INC: Berman DeValerio Lodges Securities Suit in W.D. PA 
GADZOOX NETWORKS: Bernstein Liebhard Lodges S.D. NY Securities Suit 
HEALTHEON WEBMD: Bernstein Liebhard Lodges Securities Suit in S.D. NY
H&R BLOCK: Arizona Court Approves $21M Settlement in Securities Suit
INTEL CORPORATION: Schiffrin Barroway Files Securities Suit in N.D. CA
INTERVOICE-BRITE:  Denies Allegations In Securities Suits in N.D. TX
KANA SOFTWARE: Bernstein Liebhard Initiates S.D. NY Securities Suit  
KEYNOTE SYSTEMS: Schiffrin Barroway Lodges Securities Suit in S.D. NY
NETWORK PLUS: Bernstein Liebhard Initiates S.D. NY Securities Suit 
NORTEL NETWORKS: Berman DeValerio Initiate E.D. NY Securities Suit 
RAMBUS INC.: Berman DeValerio Initiates Securities Suit in N.D. CA
ROBOTIC VISION: Berman DeValerio Initiates Securities Suit in MA
THEGLOBE.COM: Marc Henzel Initiates Securities Suit in S.D. New York
VERTICALNET INC.: Marc Henzel Commences Securities Suit in S.D. NY
ZIFF-DAVIS INC.: Marc Henzel Commences Securities Suit in S.D. NY
                           *********
ACCESS MEDPLUS: Doctors Sue Managed Care Firm Over Underpayments 
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Access MedPlus, the largest of the 10 managed care organizations in 
Tennessee's TennCare program, was recently sued by the Tennessee 
Medical Association on behalf of doctors across the state, according to 
a recent Associated Press report. 
TMA lawyer David Steed said the class-action lawsuit claims Access has 
been trying to satisfy debts to doctors by "unilaterally issuing 
credits based upon incorrect allegations of past overpayments." 
The lawsuit, said Steed, "seeks to stop this practice, and to have 
Access pay their overdue debts with real money." 
Steed says that he expects a hearing on TMA's request for a temporary 
restraining order will be held within the next few days. 
There is an added dimension to this class action.  TennCare, a state-
federal health insurance program for the poor, the disabled and 
otherwise uninsured citizens, with a budget of $5.6 billion, two-thirds 
of which is provided by the federal government, has the responsibility 
of overseeing its member health plans. 
Access had been put under close state supervision last year because its 
system for processing claims and paying medical providers was found to 
be inaccurate. 
Apparently, Access recently missed a state-imposed deadline for 
documenting its financial stability with TennCare.  The usual penalty 
for failing to present such information is to risk being kicked out of 
the TennCare program. 
At the time the letter requesting the documentation was received by 
Access in mid-September, officials at Access said the company [Access] 
had been underpaid $20 million during the year according to state 
figures.  
The request for documentation was "yet another attempt to put us out of 
business," said Access spokesman Phil West at the time. 
Director Mark Reynolds described TennCare's position, "The biggest 
concern is the company's financial adequacy.  They have missed critical 
deadlines on critical financial material, and we see no effort being 
made to provide that information." 
Access, the only TennCare member with a statewide network, serves 
279,000 of the program's 1.4 million enrollees. 
ADVANCED DEPOSITION: Berman DeValerio Lodges Securities Suit in MA
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Berman DeValerio Pease Tabacco Burt and Pucillo filed a class action 
lawsuit in the U.S. District Court for the District of Massachusetts 
against certain officers and directors of Advanced Deposition 
Technologies, Inc. (Nasdaq: ADTCQ).
The Company allegedly issued materially false and misleading financial 
statements and failed to disclose certain related party transactions.
The action came after the Company's auditors resigned and the company 
revealed that certain officers and directors had fraudulently caused 
the company to improperly engage in related party transactions. 
The lawsuit was filed in the United States District Court for the 
District of Massachusetts on behalf of all investors who bought 
Advanced Deposition stock between May 28, 1998 and April 4, 2001. 
The class action charges the defendants with issuing false and 
misleading financial statements and news releases about the company's 
earnings and related party transactions. According to the complaint, 
the company failed to disclose transactions that should have been made 
public under both Generally Accepted Accounting Principles and 
Securities and Exchange Commission regulations. 
In a number of filings with the SEC, the company revealed that:
    (1) its auditors, Ernst & Young, resigned because it was "no longer 
        willing to accept managements representations" and 
    (2) that the defendants had "falsified documents and misrepresented 
        past events" concerning the company. 
The Company filed for bankruptcy court protection on April 2001 while 
the Nasdaq Stock Market has suspended trading of Company shares. 
For more information, contact Sara Davis or Jeffrey C. Block by Mail: 
One Liberty Square, Boston, MA 02109 by Phone: (800) 516-9926 by E-
mail: law@bermanesq.com or visit the firm's Website: www.bermanesq.com
ALLIANCE FUND: Sued For Securities Violation, Breach of Fiduciary Duty
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Alliance Fund Distributors faces two securities class action suits 
pending in the U.S. District Court for the Southern District of 
Illinois. The two suits similarly allege violations of the Securities 
Act of 1940 and breaches of common law fiduciary duty.
In April 2001, a class action suit entitled Miller et al. v. Mitchell 
Hutchins Asset Management,Inc. et al. was filed against the Company and 
other defendants.
The allegations in that complaint concern six mutual funds with which 
the Adviser has investment advisory agreements, including:
     (1) the Alliance Premier Growth Fund, 
     (2) the Alliance Health Care Fund, 
     (3) the Alliance Growth Fund, 
     (4) the Alliance Quasar Fund,
     (5) the Alliance Fund and 
     (6) the Alliance Disciplined Value Fund
The suit principally alleges that:
     (i) certain advisory agreements concerning these funds were 
         negotiated, approved and executed in violation of the 1940 
         Act, in particular because certain directors of these funds 
         should be deemed interested under the 1940 Act;
    (ii) the distribution plans for these funds were negotiated, 
         approved and executed in violation of the 1940 Act; and 
   (iii) the advisory fees and distribution fees paid to the defendants 
         are excessive and, therefore, constitute a breach of fiduciary 
         duty.
In June 2001, an amended class action complaint entitled Nelson et al. 
v. AIM Advisors et al. was filed against the Company and numerous other 
defendants in the mutual fund industry. The suit makes allegations 
substantially similar to the first.
The Company believes that the allegations in the suit are without 
merit.  
ART TECHNOLOGY: Schiffrin Barroway Commences Securities Suit in MA
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Schiffrin and Barroway, LLP initiated a securities class action suit on 
behalf of all purchasers of the common stock of Art Technology Group, 
Inc. (NASDAQ:ARTG) from January 25, 2001 through April 2, 2001, 
inclusive. The suit was filed in the United States District Court for 
the District of Massachusetts and names as defendant the Company and 
certain of its officers and directors.
The complaint charges the defendants with issuing false and misleading 
statements concerning its business and financial condition. 
Specifically, the complaint alleges that the Company publicly 
represented that it was not subject to the negative trends in the 
software industry which were effecting the Company's competitors.
The Company also asserted that its strong revenue growth was not, and 
would not be, materially affected by the downturn in the technology 
sector. 
It is alleged that these statements were knowingly false and misleading 
because:
     (1) many clients were technology companies that were negatively 
         impacted by the widespread decrease in technology spending 
         which was underway before the class period began, and 
     (2) many of these customers could not afford to pay the Company 
         for its products.
In April 2001, the Company announced it will incur a loss of between 
$0.19 to $0.22 per share for the quarter ending March 30, 2001, which 
was well below expectations. In response to this announcement, the 
Company's stock price dropped to $5.3125, or 55%, from the prior day's 
close of $12 per share, on extremely heavy trading volume. 
Prior to the disclosure regarding the truth about their business state, 
Company insiders sold a total of over $8.7 million of their personally 
held company stock.
For more information, contact Marc A. Topaz or Stuart L. Berman 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 by E-mail: 
info@sbclasslaw.com or visit the firm's Website: www.sbclasslaw.com
ART TECHNOLOGY: Cauley Geller Lodges Securities Suit in Massachusetts
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Cauley Geller Bowman & Coates, LLP commenced a securities class action 
on behalf of purchasers of Art Technology Group, Inc. (NASDAQ:ARTG) 
common stock during the period between January 25, 2001 and April 2, 
2001, inclusive. The complaint, filed in the United States District 
Court for the District of Massachusetts, charges the Company and 
certain of its officers and directors with violating the federal 
securities laws.
The defendants allegedly issued false and misleading statements 
concerning its business and financial condition. Specifically, the 
complaint alleges that the Company publicly represented, in a press 
release and public interviews, that it was not subject to the negative 
trends in the software industry.
The Company also asserted that its strong revenue growth was not, and 
would not be, materially affected by the downturn in the technology 
sector. 
It is alleged that these statements were knowingly false and misleading 
because:
     (1) many clients were technology companies that were negatively 
         impacted by the widespread decrease in technology spending 
         which was underway before the class period began; and 
     (2) many of these customers could not afford to pay the Company 
         for its products. 
In April 2001, the Company issued a press release announcing that it 
will incur a loss of between $0.19 to $0.22 per share for the quarter 
ending March 30, 2001, which was well below expectations. In response 
to this announcement, the Company's stock price dropped to $5.3125, or 
55%, from the prior day's close of $12 per share, on extremely heavy 
trading volume. 
Prior to the disclosure of the true facts about the Company's business, 
Company insiders sold a total of over $8.7 million of their personally 
held stock.
For more details, contact Jackie Addison, Sue Null or Charlie Gastineau 
by Mail: Investor Relations Department, P.O. Box 25438, Little Rock, AR 
72221-5438 by Phone: 1-888-551-9944 (toll-free) by E-mail: 
info@classlawyer.com or visit the firm's Website: www.classlawyer.com
CLARENT CORPORATION: Wolf Haldenstein Lodges N.D. CA Securities Suit 
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Wolf Haldenstein Adler Freeman & Herz LLP commenced a class action 
lawsuit on behalf of all purchasers of Clarent Corporation (NASDAQ: 
CLRN) securities between April 19, 2001 and September 4, 2001.
The suit, filed in the United States District Court for the Northern 
District of California, names as defendants:
     (1) the Company, 
     (2) Jerry Shaw-Yau Chang, Chairman of the Board, 
     (3) Simon Wong, Chief Financial Officer, 
     (4) Michael F. Vargo, Chief Executive Officer and a Director, and 
     (5) Mark E. McIlvane, Senior Vice President
The complaint alleges that defendants violated Sections 10(b) and 20(a) 
of the Securities Exchange Act of 1934 and Rule 10b-5, promulgated 
thereunder.
The defendants allegedly issued materially false and misleading 
statements that had the effect of artificially inflating the market 
price of the Company's securities. Specifically, the complaint alleges 
that in April 2001, the Company reported its results for the first 
quarter of 2001 - net revenue had increased 15% over the fourth quarter 
of 2000 and had increased 149% from the first quarter of 2000. 
In July 2001, the Company announced its results for the second quarter 
of 2001. Shortly thereafter, the Company filed its Quarterly Report on 
Form 10-Q with the Securities and Exchange Commission for the same 
quarter.  The Company's August 10-Q stated that net revenues had 
increased 123% to $63.2 million in the three months ended June 30, 2001 
from $28.3 million in the three months ended June 30, 2000. 
Net revenue for the six months ended June 30, 2001 increased by 135% to 
$134.3 million from $52.9 million for the same period in 2000. The 
increase in product and software sales was "primarily attributable to 
sales of new products." These positive revenue announcements, which the 
Company now admits were false and misleading, artificially inflated the 
price of stock.
This also allowed Company insiders to benefit from the fraudulent 
financial statements and sell over 130,000 shares of common stock at 
prices ranging from $8.00 to $10.48 per share for total proceeds of 
$1.3 million. Just three weeks after the Company filed its August 10-Q, 
they admitted that its financial results were materially overstated. 
In September 2001, the Company publicly announced that "it has 
discovered information suggesting that the Company's previously 
reported revenues for the first and second quarters of fiscal 2001 may 
have been materially overstated." 
On this news, NASDAQ halted trading in the Company. The Company's 
common stock was last quoted on September 4, 2001 at $5.37 per share. 
According to NASDAQ, trading will remain halted until the Company has 
fully satisfied its request for additional information.
For more information, contact George Peters, Derek Behnke, Michael 
Miske, Gregory Nespole or Fred Taylor Isquith by Mail: 270 Madison 
Avenue, New York, New York 10016 by Phone: (800) 575-0735 by E-mail: 
classmember@whafh.com or visit the firm's Website: www.whafh.com. 
All e-mail correspondence should make reference to Clarent.
CYBERSOURCE CORPORATION: Bernstein Liebhard Files NY Securities Suit 
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Bernstein Liebhard and Lifshitz, LLP commenced a securities class 
action suit on behalf of all persons who acquired CyberSource 
Corporation (NASDAQ: CYBS) securities between June 23, 1999 and 
December 6, 2000.
The case is pending in the United States District Court for the 
Southern District of New York and names as defendants the Company and: 
     (1) William S. McKiernan,
     (2) Charles E. Noreen, Jr.,
     (3) Merrill Lynch, Pierce, Fenner & Smith Incorporated, 
     (4) Goldman Sachs & Co. and 
     (5) BancBoston Robertson Stephens, Inc. 
The complaint charges defendants with violations of the Securities Act 
of 1933 and the Securities Exchange Act of 1934.
The Company allegedly issued a registration statement and prospectus 
that contained materially false and misleading information and failed 
to disclose material information. 
The prospectus was issued in connection with the Company's initial 
public offering of four million shares of common stock at $11.00 per 
share that was commenced on June 23, 1999.  The complaint alleges that 
the Prospectus was false and misleading because it failed to disclose:
     (i) the underwriters' agreement with certain investors to provide 
         them with significant amounts of Company shares in the IPO in 
         exchange for exorbitant and undisclosed commissions; and 
    (ii) the agreement between the underwriters and certain of its 
         customers whereby the underwriters would allocate shares in 
         the IPO to those customers in exchange for the customers' 
         agreement to purchase shares in the aftermarket at pre-
         determined prices
For further details, contact Ms. 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 by E-mail: CYBS@bernlieb.com or 
visit the firm's Website: www.bernlieb.com
DIGIMARC INC.: Marc Henzel Commences Securities Suit in S.D. New York
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The Law Office of Marc S. Henzel initiated a securities class action on 
behalf of all persons and entities who purchased, converted, exchanged 
or otherwise acquired the common stock of Digimarc Corporation (Nasdaq: 
DMRC) between December 1, 1999 and March 12, 2001.
The suit, filed in the U.S. District Court for the Southern District of 
New York, names as defendants, the Company and:
     (1) Bruce Davis, President and Chief Executive Officer, 
     (2) Geoffrey Rhoads, founder and Chief Technology officer, 
     (3) E. K. Ranjit, Chief Financial Officer and Secretary, 
     (4) Philip J. Monego, Sr., Chairman, 
     (5) Brian J. Grossi, director,
 
     (6) John Taysom, director,
     (7) BancBoston Robertson Stephens, Inc., lead underwriter
The lawsuit asserts claims under Sections 11, 12 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 the defendants violated the federal 
securities laws by issuing and selling the Company's common stock 
pursuant to the December 2, 1999 IPO without disclosing to investors 
that one of the lead underwriters in the offering had solicited and 
received excessive and undisclosed commissions from certain investors. 
In exchange for the excessive commissions, the complaint alleges, the 
lead underwriter allocated Company shares to customers at the IPO price 
of $20.00 per share.
 To receive the alleged allocations at $20.00, the underwriter's 
brokerage customers had to agree to purchase additional shares in the 
aftermarket at progressively higher prices. The requirement that 
customers make additional purchases at progressively higher prices as 
the price of the Company stock rocketed upward was intended to drive 
the Company's share price up to artificially high levels. 
This artificial price inflation, the complaint alleges, enabled the 
defendants to reap enormous profits by buying stock at the $20.00 IPO 
price and then selling it later for a profit at inflated aftermarket 
prices, which rose as high as $88.00 during its first day of trading. 
Rather than allowing their customers to keep their profits from the 
IPO, the complaint alleges, the underwriter required its customers to 
``kick back'' some of their profits in the form of secret commissions. 
These secret commission payments were sometimes calculated after the 
fact based on how much profit each investor had made from his or her 
IPO stock allocation. 
For more information, contact Marc S. Henzel by Mail: 210 West 
Washington Square, Philadelphia, PA 19106 by Phone: (215)625-9999 or 
(888)643-6735 by Fax: (215)440-9475 by E-Mail: mhenzel182@aol.com or 
visit the firm's Website: http://members.aol.com/mhenzel182
eTOYS INC.: Marc Henzel Commences Securities Suit in S.D. New York
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The Law Office of Marc S. Henzel initiated a class action suit in the 
U.S. District Court for the Southern District of New York against 
eToys, Inc. (formerly listed as NasdaqNM:ETYS).
The suit was filed on behalf of all persons and entities who purchased, 
converted, exchanged or otherwise acquired the common stock of eToys, 
Inc. between May 19, 1999 and May 26, 2000, inclusive. 
The suit asserts claims under Section 11, 12 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 by the SEC thereunder.
The complaint names as defendants:
     (1) the Company, 
     (2) Edward C. Lenk, President and Chief Executive Officer at the 
         time of its IPO, and 
     (3) Steven J. Schoch, its CFO at the time of its IPO 
The defendants allegedly violated federal securities laws by issuing 
and selling eToys common stock pursuant to the initial public offering 
without disclosing to investors that three of the lead underwriters of 
the IPO had solicited and received excessive and undisclosed 
commissions from certain investors. 
In exchange for the excessive commissions, the complaint alleges that 
the following lead underwriters:
     (i) The Goldman Sachs Group, Inc., 
    (ii) FleetBoston Robertson Stephens, Inc., and 
   (iii) Merrill Lynch, Pierce, Fenner & Smith Inc. 
allocated eToys shares to customers at the IPO price of $20.00 per 
share. 
To receive the allocations at $20.00, the underwriters' brokerage 
customers had to agree to purchase additional shares in the aftermarket 
at progressively higher prices. The requirement that customers make 
additional purchases at progressively higher prices as the price of 
eToys stock rocketed upward was intended to drive eToys's share price 
up to artificially high levels. 
This artificial price inflation, the complaint alleges, enabled both 
the defendants and their customers to reap enormous profits by buying 
eToys stock at the $20.00 IPO price and then selling it later for a 
profit at inflated aftermarket prices, which rose as high as $85.00 
during its first day of trading. 
Rather than allowing their customers to keep their profits from the 
IPO, the complaint alleges, the defendants required their customers to 
``kick back'' some of their profits in the form of secret commissions. 
These secret commission payments were sometimes calculated after the 
fact based on how much profit each investor had made from his or her 
IPO stock allocation. 
The complaint further alleges that defendants violated the Securities 
Act of 1933 because the prospectus distributed to investors and the 
registration statement filed with the SEC in order to gain regulatory 
approval for the eToys offering contained material misstatements.
These statements relate to the commissions that the underwriters would 
derive from the IPO and failed to disclose the additional commissions 
and ``laddering'' scheme discussed above. 
For more information, contact Marc S. Henzel by Mail: 210 West 
Washington Square, Philadelphia, PA 19106 by Phone: (215)625-9999 or 
(888)643-6735 by Fax: (215)440-9475 by E-Mail: mhenzel182@aol.com or 
visit the firm's Website: http://members.aol.com/mhenzel182
      
FORD MOTOR: Court Moves Certification Hearing To November
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Hearing for class certification in the legal battle against automotive 
giant Ford Motor Co. and tire manufacturer Firestone, Inc. has been 
rescheduled for November 16.
Hundreds of lawsuits were filed across the country over deaths and 
injuries in rollovers of Ford's Explorer sport utility vehicle and 
tires manufactured by Firestone, a unit of Japan's Bridgestone Corp.
Federal regulators have linked 271 deaths and more than 800 injuries to 
Firestone tires, many in accidents involving Explorers that rolled over 
after deadly blowouts on U.S. highways.
Federal judge Sarah Evans Barker delayed the hearing, which was 
originally scheduled to begin yesterday in Indianapolis, because she 
wanted more time to consider new information filed by the attorneys 
seeking class-action status.
Lawyers for the plaintiffs have argued that the plaintiffs have enough 
in common to justify a "class" designation.
They argued that the two companies acted in a common scheme of 
"designing, manufacturing, warranting, advertising and selling 
unreasonably dangerous Ford Explorers and tires to millions of 
consumers throughout the world."
They also alleged that both companies concealed the defects in the 
product.
The two companies have opposed class action status for the suit saying 
that the facts differ too much between various individuals. According 
to the companies, some may have seen different advertisements for the 
same products and some may have bought the Explorer through someone 
other than a Ford dealer.
"Plaintiffs have not shown -- and they cannot -- how the claims of the 
diverse members of this class could be proven with representative 
proofs," according to written comments submitted to the court. 
"And when the individual's Explorer design and performance issues are 
added to the equation, it is plain that a class trial of so many 
distinct products would be unmanageable."
Stanford law professor Deborah Hensler said in a Reuters report that 
the federal judiciary in general has tended to be more hostile toward 
class-action certification recently than previously. 
She said such lawsuits are often criticized as producing large fees for 
the plaintiffs attorneys and small settlements for consumers while 
giving the companies an easy out.
Whatever the judge's decision about class-action certification, it's 
possible an appeal will be filed, she added.
"Most people following class-actions today would say the judicial winds 
are blowing against the certification of this kind of case," she said.
If class action status is awarded in the case, a main trial would 
proceed in Indianapolis, and the results would be applied to all 
plaintiffs.
The pending suit has hurt the bottomlines of Ford Motors and Firestone 
and severed the 100-year-old relationship between the two companies who 
blamed each other for the accidents.
FREEMARKETS INC: Berman DeValerio Lodges Securities Suit in W.D. PA 
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Berman DeValerio Pease Tabacco Burt and Pucillo commenced a securities 
class action against Freemarkets, Inc. in the United States District 
Court for the Western District of Pennsylvania. The suit was filed on 
behalf of all investors who bought FreeMarkets, Inc. common stock 
between July 24, 2000 and April 23, 2001.
The suit charged the Company with improperly accounting for its 
financial results for the second, third and fourth quarters and the 
year of fiscal 2000.  In reporting its financial results, the Company 
failed to properly account for a warrant that it had provided to one of 
its largest customers, Visteon Corporation.
Consequently, the Company was able to report artificially-inflated 
revenues during the class period. 
On April 23, 2001, FreeMarkets revealed that the Securities and 
Exchange Commission had informed the Company that its payments from 
Visteon should not be classified as revenue, but as money paid for the 
warrant. As a result, absent an appeal, the Company announced its 
intention to amend its financial statements to eliminate all the 
revenue it had received from Visteon during the class period. 
The Company's stock price fell from a close of $10.29 per share on 
April 23, 2001 to $9.30 on April 24, 2001. 
The suit also names the Company's chief executive officer and chief 
financial officer as defendants. These officers are charged with 
collectively selling thousands of shares of the Company's common stock 
during the class period for proceeds totaling over $17 million.
For more information, contact Sara Davis or Jeffrey C. Block by Mail: 
One Liberty Square, Boston, MA 02109 by Phone: (800) 516-9926 by E-
mail: law@bermanesq.com or visit the firm's Website: www.bermanesq.com
GADZOOX NETWORKS: Bernstein Liebhard Lodges S.D. NY Securities Suit 
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Bernstein Liebhard and Lifshitz, LLP filed a securities class action 
suit on behalf all persons who acquired Gadzoox Networks, Inc. (NASDAQ: 
ZOOX) securities between July 19, 1999 and December 6, 2000.
The case, filed in the United States District Court for the Southern 
District of New York, names as defendants the Company and:
     (1) Credit Suisse First Boston Corp.,
     (2) BancBoston Robertson Stephens,
     (3) Bill Sickler, 
     (4) Christine E. Munson and 
     (5) Alistar Black
The complaint alleges violations of Section 11, 12(a)(2) and 15 of the 
Securities Act of 1933 and Section 10(b) of the Securities Act of 1934 
and Rule 10b-5 promulgated thereunder. 
On or about July 19, 1999, the Company commenced an initial public 
offering of 3,500,000 of its shares of common stock at an offering 
price of $21.00 per share.
In connection therewith, the Company filed a registration statement, 
which incorporated a prospectus with the Securities and Exchange 
Commission. The complaint further alleges that the prospectus was 
materially false and misleading because it failed to disclose, among 
other things, that: 
     (i) the underwriters had solicited and received excessive and 
         undisclosed commissions from certain investors in exchange for 
         which the underwriters allocated to those investors material 
         portions of the restricted number of shares issued in 
         connection with the IPO; and 
    (ii) the underwriters had entered into agreements with customers
         whereby the underwriters agreed to allocate shares to those 
         customers in the IPO in exchange for which the customers 
         agreed to purchase additional shares in the aftermarket at 
         predetermined prices
For more information, contact Ms. 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: ZOOX@bernlieb.com 
or visit the firm's Website: www.bernlieb.com
HEALTHEON WEBMD: Bernstein Liebhard Lodges Securities Suit in S.D. NY
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Bernstein Liebhard and Lifshitz commenced a securities class action 
lawsuit on behalf all persons who acquired the securities of WebMD 
Corporation, formerly known as Healtheon Corporation, (NASDAQ: HLTH) 
between February 10, 1999 and December 6, 2000.
The case is pending in the United States District Court for the 
Southern District of New York and names as defendants the Company and:
     (1) W. Michael Long,
     (2) John L. Westerman, III,
     (3) Morgan Stanley & Co. Incorporated, and 
     (4) Goldman Sachs & Co.
The complaint charges defendants with violations of the Securities Act 
of 1933 and the Securities Exchange Act of 1934.
The Company allegedly issued a registration statement and prospectus 
that contained materially false and misleading information and failed 
to disclose material information.  
The prospectus was issued in connection with the Company's initial 
public offering of 5 million shares of common stock at $8.00 per share 
that was completed on February 10, 1999. The suit alleges that the 
prospectus was false and misleading because it failed to disclose:
     (i) the underwriters' agreement with certain investors to provide 
         them with significant amounts of restricted shares in the IPO 
         in exchange for exorbitant and undisclosed commissions; and 
    (ii) the agreement between the underwriters and certain of its
         customers whereby the underwriters would allocate shares in 
         the IPO to those customers in exchange for the customers' 
         agreement to purchase shares of the Company in the aftermarket 
         at pre-determined prices. 
          
For more details, contact Ms. 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 by E-mail: HLTH@bernlieb.com or 
visit the firm's Website: www.bernlieb.com
H&R BLOCK: Arizona Court Approves $21M Settlement in Securities Suit
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The Arizona Superior Court approved a $21 million agreement by H&R 
Block Financial Advisors, Inc. to settle a class action suit filed on 
behalf of investors. The case was filed in 1996 at the Superior Court 
of Arizona, Maricopa County, in October 1996, against Olde Discount 
Corporation, which H&R Block bought in 1999. 
Investors claimed that Olde advertised their "Smart" training programs 
throughout the country, in marketing materials that falsely promised 
customers "full service" with "no commissions or markups of any kind."
Plaintiff's attorney David Lefkowitz asserted, "This fraudulent 
advertising was part of a scheme to steer customers into only buying 
from Olde's tiny pool of house stocks."
Lefkowitz further claimed that the Company and its brokers made 
exceptional markups and commissions, contrary to what they told the 
plaintiffs. In fact, the Company engaged in a number of practices 
inconsistent with other broker-dealers calling itself "full service."
The Company allegedly permitted its brokers to recommend less than 3 
percent of the 8,000-plus stocks listed on the New York and American 
Stock Exchanges and Nasdaq. The brokers bypassed actively-traded, 
large-cap stocks on the New York Stock Exchange in favor of Nasdaq 
stocks where Company profits from market-making were larger. 
The Company also imposed Special Venture sales quotas and production 
requirements to force its brokers to sell its house stocks. 
Lefkowitz explained that Company brokers depended on those commissions 
since they were only paid $14,400 per year, and the Company put a 
system in place that deprived brokers of all commission privileges 
unless they sold Special Ventures.
The Company did not sell Special Ventures to its customers at its 
acquisition cost (often the "bid" price of the stock), but instead 
marked them up to a higher price (usually the "ask" price), contrary to 
its class-wide advertising of "no-markup" trading. The Company paid its 
brokers undisclosed commissions from the hidden markups. Higher 
commissions were paid on stocks the firm wanted to move. 
The Company settled the case after a 3-week trial for $21 million, 
representing 115 percent of the investors' net out-of-pocket losses. 
For further information, please contact Karen Restivo by Phone: 1-310-
209-5678, ext. 224 or David I. Lefkowitz by Phone: 1-310-393-4929.
INTEL CORPORATION: Schiffrin Barroway Files Securities Suit in N.D. CA
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Schiffrin and Barroway lodged a securities class action suit on behalf 
of all purchasers of the common stock of Intel Corp. (NASDAQ:INTC) from 
July 19, 2000 through September 29, 2000, inclusive.
The suit was filed in the United States District Court for the Northern 
District of California against Intel Corporation and certain of its 
officers and directors.
The suit alleges that the defendants issued false and misleading 
statements concerning its business and financial condition. 
Specifically, the complaint alleges that as a result of Intel's 
extraordinarily bullish statements and assurances in July and August 
2000, the Company's stock hit its all-time high of $75-13/16. 
The suit alleges that these statements were false:
     (1) the positive statements about the strong demand for Intel's 
         products, 
     (2) Intel's improved manufacturing processes and efficiencies, 
     (3) the successful development and introduction of its Pentium III 
         microprocessor, 
     (4) the successful development of the Pentium IV, 
     (5) Itanium and Timna chips and the outlook for Intel's 3rdQ 00 
         results, issued from July 18 to July 19, 2000 through the 
         Intel Developer Forum
In September 2000, the Company admitted it was canceling its Timna chip 
due to technical development problems and a lack of market demand. The 
Company also told customers it was delaying shipment of its Pentium IV 
and Itanium chips due to design and development problems. 
The Company's stock dropped, falling to as low as $35-3/8. Thus, in 
just over five weeks, Intel's stock dropped from its all-time high of 
$75-13/16 on 8/28, to its lowest price in years, $35-3/8, a market cap 
loss of $271 billion, wiping out 50% of Intel's stock value.
For more details, contact Marc A. Topaz or Stuart L. Berman 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 by E-mail: 
info@sbclasslaw.com or visit the firm's Website: www.sbclasslaw.com
INTERVOICE-BRITE:  Denies Allegations In Securities Suits in N.D. TX
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Intervoice-Brite, Inc. denied allegations in several securities suits 
pending in the United States District Court for the Northern District 
of Texas.
The suit was filed on behalf of purchasers of the Company's common 
stock from October 12, 1999 through June 6, 2000 and names as 
defendants the Company and certain officers and directors. 
The suit alleges violations of Sections 10(b) and 20(a) of the 
Securities Exchange Act of 1934 and the Securities and Exchange
Commission Rule 10b-5.
The suit claim that the defendants issued false and misleading 
statements concerning:
     (1) the financial condition of the Company, 
     (2) the results of the Company's merger with Brite Voice Systems, 
         Inc., and 
     (3) the alleged future business projections of the Company. 
As a result, the Company's stock was inflated to as high as $38.75 per 
share. The defendants took advantage of this inflation, selling 525,916 
shares of their stock for $13.4 million in proceeds. Then, in June 
2000, the Company shocked the market, revealing that it would report a 
loss of $0.03 to $0.05 and revenues of only $67-68 million rather than 
the EPS of $0.22 and revenues of $89 million defendants had led the 
market to expect. 
The defendants blamed the shortfall on sales people who had begun 
leaving the Company in the months prior to this disclosure, some of 
which were unhappy with the integrated Company. 
The Company asserted that its officers have complied with their 
obligations under the securities laws.
KANA SOFTWARE: Bernstein Liebhard Initiates S.D. NY Securities Suit  
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Bernstein Liebhard and Lifshitz, LLP commenced a securities class 
action lawsuit on behalf all persons who acquired Kana Software, Inc. 
(NASDAQ: KANA) securities between September 21, 1999 and December 6, 
2000.
The case, filed in the United States District Court for the Southern 
District of New York, names as defendants the Company and:
     (1) Michael J. McCloskey,
     (2) Joseph D. McCarthy,
     (3) Goldman Sachs & Co., 
     (4) Hambrecht & Quist, LLC,
     (6) Wit Capital Corporation
The complaint charges defendants with violations of the Securities Act 
of 1933 and the Securities Exchange Act of 1934.
The Company allegedly issued a registration statement and prospectus
that contained materially false and misleading information and failed 
to disclose material information.  
The prospectus was issued in connection with Kana's initial public 
offering of 3.3 million shares of common stock at $15.00 per share that 
was commenced on September 21, 1999. The complaint alleges that the 
Prospectus was false and misleading because it failed to disclose:
     (i) the underwriters' agreement with certain investors to provide 
         them with significant amounts of shares in the IPO in exchange 
         for exorbitant and undisclosed commissions; and 
    (ii) the agreement between the underwriters and certain 
         of its customers whereby the underwriters would allocate 
         shares in the IPO to those customers in exchange for the 
         customers' agreement to purchase Kana shares in the 
         aftermarket at pre-determined prices. 
For more details, contact Ms. 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 visit the firm's Website: 
www.bernlieb.com
KEYNOTE SYSTEMS: Schiffrin Barroway Lodges Securities Suit in S.D. NY
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Schiffrin and Barroway, LLP commenced a securities class action on 
behalf of purchasers of the common stock of Keynote Systems, Inc. 
(NASDAQ:KEYN) from September 24, 1999 through December 6, 2000, 
inclusive. The suit was filed in the United States District Court for 
the Southern District of New York against the Company and underwriter 
BancBoston Robertson Stephens, Inc.
In September 1999, the Company commenced an initial public offering of 
4,000,000 of its shares of common stock, at an offering price of $14 
per share. In connection therewith, the Company filed a registration 
statement, which incorporated a prospectus with the Securities and 
Exchange Commission. 
The complaint further alleges that the prospectus was materially false 
and misleading because it failed to disclose, among other things, that: 
     (i) BancBoston had solicited and received excessive and 
         undisclosed commissions from certain investors in exchange for 
         which BancBoston allocated to those investors material 
         portions of the restricted number of shares issued in 
         connection with the IPO; and 
    (ii) BancBoston had entered into agreements with customers whereby 
         BancBoston agreed to allocate shares to those customers in the   
         IPO in exchange for which the customers agreed to purchase 
         additional shares in the aftermarket at pre-determined prices. 
For more information, contact Marc A. Topaz or Stuart L. Berman 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 by E-mail: 
info@sbclasslaw.com or visit the firm's Website: www.sbclasslaw.com
NETWORK PLUS: Bernstein Liebhard Initiates S.D. NY Securities Suit 
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Bernstein Liebhard and Lifshitz, LLP commenced 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 and names as defendants the Company and:
     (1) Robert T. Hale, Jr., 
     (2) James J. Crowley, 
     (3) George Alex,
     (4) Goldman Sachs & Co., 
     (5) Bear Stearns & Co., Inc., 
     (6) Merrill Lynch, Pierce, Fenner & Smith Incorporated, 
     (7) Lehman Brothers, Inc., and
     (8) Salomon Smith Barney, Inc. 
The complaint charges defendants with violations of the Securities Act 
of 1933 and the Securities Exchange Act of 1934.
The Company allegedly issued a registration statement and prospectus 
that contained materially false and misleading information and failed 
to disclose material information.  
The prospectus was issued in connection with the Company's initial 
public offering of 8,000,000 shares of common stock at $16.00 per share 
that was completed on June 30, 1999.  The complaint alleges that the 
prospectus was false and misleading because it failed to disclose:
     (i) the underwriters' agreement with certain investors to provide 
         them with significant amounts of restricted shares in the IPO 
         in exchange for exorbitant and undisclosed commissions; and 
    (ii) the agreement between the underwriters and certain of its 
         customers whereby the underwriters would allocate shares in 
         the IPO to those customers in exchange for the customers' 
         agreement to purchase shares in the aftermarket at pre-
         determined prices
 
For further details, contact Ms. 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 by E-mail: NPLS@bernlieb.com or 
visit the firm's Website: www.bernlieb.com
  
NORTEL NETWORKS: Berman DeValerio Initiate E.D. NY Securities Suit 
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Berman DeValerio Pease Tabacco Burt and Pucillo commenced a securities  
class action suit against Nortel Networks Corporation in the United 
States District Court for the Eastern District of New York. The 
complaint seeks damages for violations of the federal securities laws 
on behalf of all investors who bought Nortel common stock between 
November 1, 2000 and February 15, 2001. 
The complaint charges that Nortel and certain of its officers and 
directors violated Sections 10(b) and 20(a) of the Securities Exchange 
Act of 1934, and Rule 10b-5 promulgated thereunder. The Company 
allegedly issued materially false and misleading financial information 
concerning the demand for the Company's product. 
Specifically, the complaint asserts that during the class period, the 
Company touted strong revenue and earnings guidance for first quarter 
and fiscal year 2001. In January 2001, the Company announced that it 
would "continue to outpace the market and gain profitable market share" 
despite the "tightening of capital within the telecom sector." 
All along, however, Nortel executives knew that the Company was 
experiencing a substantial shortfall in sales and earnings due to 
decreased orders from its customers. 
In February, after the close of trading and just 28 days after issuing 
a bullish first quarter forecast, defendants issued a stunning press 
release dramatically lowering Nortel's guidance for first quarter and 
fiscal year 2001 because of decreased demand for its product. Company 
stock plummeted as much as 36% to $19.50 on enormous trading volume in 
excess of 20 million shares, finally closing at $20.02 - erasing nearly 
$33 billion in market capitalization. 
Moreover, before the devastating announcement on February 15, 2001, 
Nortel's senior managements sold substantial amounts of Nortel stock, 
reaping proceeds of over $7 million from insider sales. 
For more information, contact N. Nancy Ghabbai by Mail: One Liberty 
Square, Boston, MA 02109 by Phone: (800) 516-9926 by E-mail: 
law@bermanesq.com or visit the firm's Website: www.bermanesq.com
RAMBUS INC.: Berman DeValerio Initiates Securities Suit in N.D. CA
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Berman DeValerio Pease Tabacco Burt and Pucillo commenced a securities 
class action against Rambus, Inc. on behalf of purchasers of the 
Company's stock between January 18, 2000 and May 9, 2001. The suit was 
filed in the United States District Court for the Northern District of 
California and charges the Company with deceiving investors about 
important patterns and violations of federal securities laws.
The suit accuses the Los Altos-based company and three top executives 
of making false and misleading statements about the company's ownership 
of valuable patents for SDRAM computer memory technology.  The company 
derives the majority of its revenues by charging royalty and license 
fees to chipmakers on patents it holds. The truth about the Company 
emerged after the company sued Infineon AG for patent infringement. 
On March 15, 2001, the U.S. District Court judge trying the case ruled 
that the Company had too broadly construed the parameters of its 
patents on SDRAM technology.  In a subsequent trial, a jury found that 
the Company had secured its SDRAM patents through fraud. 
Throughout the class period, during which Company stock reached a high 
of over $117 per share, the Company falsely held itself out as the 
rightful owner of valuable patents on SDRAM technology that it would 
vigorously protect through litigation. 
It repeatedly touted its growing stream of revenues from SDRAM patent 
royalties, without disclosing that such revenues were unlikely to recur 
once its fraud in obtaining the patents had been exposed.  It also 
failed to disclose that it would be unlikely to adequately enforce 
those patents, given Infineon's courtroom defenses. 
For more details, contact Steven D. Morris by Mail: One Liberty Square
Boston, MA 02109 by Phone: (617) 542-8300 by Fax: (617) 542-1194 or 
visit the firm's Website: www.bermanesq.com
ROBOTIC VISION: Berman DeValerio Initiates Securities Suit in MA
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Berman DeValerio Pease Tabacco Burt and Pucillo commenced a securities 
class action suit in the United States District Court for the District 
of Massachusetts on behalf of all investors who bought Robotic Vision 
Systems, Inc. common stock from January 27, 2000 through May 15, 2001. 
The complaint accuses the Company of making false and misleading 
statements in its news releases and public filings with the Securities 
and Exchange Commission about its revenues and net income for the 
fiscal year ended September 30, 2000. 
In news releases issued during the class period, the Company touted its 
sequential growth in revenues for the first three quarters of fiscal 
year 2000.
The Company also announced a turnaround in which it posted net income 
in each quarter compared with quarterly losses for the corresponding 
periods in fiscal year 1999.  In the third quarter of fiscal 2000, the 
Company attributed its quarterly growth in part to its Acuity CiMatrix 
division.  In May 2001, however, the Company announced that it would 
restate its financial results for the fiscal year ended September 30, 
2000 and for the three month period ended December 31, 2000 to correct 
"accounting errors" tied to revenue recognition at Acuity CiMatrix. 
At the time of the announcement, the Company said that the restatement 
would reduce revenue for the year to an estimated $223.5 million, or 
1.9% less than had been reported previously, and shrink net income to 
$10.9 million, or 10.6% less than had been reported previously. 
In response to the announcement, the Company's stock price dropped 
approximately 15% in one day on heavy trading volume. 
For more information, contact Alicia M. Duff by Mail: One Liberty 
Square, Boston, MA 02109 by Phone: (617) 542-8300 by Fax: (617) 542-
1194 or visit the firm's Website: www.bermanesq.com
THEGLOBE.COM: Marc Henzel Initiates Securities Suit in S.D. New York
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The Law Office of Marc S. Henzel commenced a securities class action on 
behalf of purchasers of the securities of TheGlobe.com, Inc. (NASDAQ: 
TGLO) between November 12, 1998 and December 6, 2000, inclusive. 
The suit, filed in the United States District Court, Southern District 
of New York, naming as defendants: 
     (1) TheGlobe.com, 
     (2) Bear Stearns & Co. Inc., 
     (3) Michael Egan, 
     (4) Todd Krizelman, 
     (5) Stephen Paternot and 
     (6) Frank Joyce 
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. 
In November 1998, the Company commenced an initial public offering of 
3,100,000 of its shares of its common stock, at an offering price of $9 
per share. 
In connection therewith, the Company filed a registration statement, 
which incorporated a prospectus with the Securities and Exchange 
Commission.  The complaint further alleges that the Prospectus was 
materially false and misleading because it failed to disclose, among 
other things, that: 
     (i) Bear Stearns had solicited and received excessive and 
         undisclosed commissions from certain investors in exchange for 
         which Bear Stearns allocated to those investors material 
         portions of the restricted number of TheGlobe.com shares 
         issued in connection with the TheGlobe.com IPO; and 
    (ii) Bear Stearns had entered into agreements with customers 
         whereby it agreed to allocate TheGlobe.com shares to those 
         customers in the TheGlobe.com IPO in exchange for which the 
         customers agreed to purchase additional TheGlobe.com shares in 
         the aftermarket at pre-determined prices. 
For further details, contact Marc S. Henzel by Mail: 210 West 
Washington Square, Philadelphia, PA 19106 by Phone: (215) 625-9999 or 
(888) 643-6735 by Fax: (215) 440-9475 by E-mail: mhenzel182@aol.com or 
visit the firm's Website: http://members.aol.com/mhenzel
VERTICALNET INC.: Marc Henzel Commences Securities Suit in S.D. NY
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The Law Office of Marc Henzel initiated a class action lawsuit on 
behalf of purchasers of VerticalNet, Inc. (NASDAQ: VERT) common stock 
between February 11, 1999 and June 8, 2001, inclusive.
The suit, filed in the United States District Court for the Southern 
District of New York, names defendants:
     (1) VerticalNet, Inc., 
     (2) Gene S. Godick, 
     (3) Mark L. Walsh, 
     (4) Michael J. Hagan, 
     (5) Douglas A. Alexander, 
     (6) Jeffrey C. Ballowe, 
     (7) Walter W. Buckley, III, 
     (8) Matthew J. Warta,
     (9) Lehman Brothers, Inc., 
    (10) Hambrecht & Quist LLC, 
    (11) Volpe Brown Whelan & Company, LLC and 
    (12) Wit Capital Corporation
The suit alleges the defendants violated the federal securities laws by 
issuing and selling Company stock pursuant to the February 11, 1999 IPO 
without disclosing to investors that some of the underwriters in the 
offering, including the lead underwriters, had solicited and received 
excessive and undisclosed commissions from certain investors. 
The complaint alleges that, in exchange for the excessive commissions, 
the lead underwriters allocated shares to customers at the IPO price of 
$16.00 per share.  To receive the allocations at $16.00, the 
underwriters' brokerage customers allegedly had to agree to purchase 
additional shares in the aftermarket at progressively higher prices. 
The requirement that customers make additional purchases at 
progressively higher prices as the price of the Company's stock 
rocketed upward was intended to drive the Company's share price up to 
artificially high levels.  This artificial price inflation, the 
complaint alleges, enabled both the underwriters and their customers to 
reap enormous profits by buying stock at the $16.00 IPO price, and then 
selling it later for a profit at inflated aftermarket prices. The 
aftermarket prices rose to more than $138 a little over one year after 
the IPO. 
Rather than allowing their customers to keep their profits from the 
IPO, the complaint alleges, the underwriters required their customers 
to ``kick back'' some of their profits in the form of secret 
commissions. These secret commission payments were sometimes calculated 
after the fact based on how much profit each investor had made from his 
or her IPO stock allocation. 
The complaint further alleges that defendants violated the Securities 
Act of 1933 because the prospectus distributed to investors and the 
registration statement filed with the SEC contained material 
misstatements regarding the commissions that the underwriters would 
derive from the IPO transaction and the "laddering" scheme discussed 
above. 
For more information, contact Marc S. Henzel by Mail: 210 West 
Washington Square, Philadelphia, PA 19106 by Phone: (215) 625-9999 or 
(888)643-6735 by Fax: (215)440-9475 by E-Mail: mhenzel182@aol.com or 
visit the firm's Website: http://members.aol.com/mhenzel182
ZIFF-DAVIS INC.: Marc Henzel Commences Securities Suit in S.D. NY
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The Law Office of Marc Henzel initiated a securities class action on 
behalf all persons who acquired Ziff-Davis, Inc. (NASDAQ: ZDZ) 
securities between March 30, 1999 and December 12, 2000.
The suit, pending in the United States District Court for the Southern 
District of New York, names as defendants:
     (1) the Company,
     (2) CNET Networks, Inc., which acquired Ziff-Davis in a stock swap 
         on October 17, 2000, 
     (3) Timothy C. O'Brien,
     (3) Goldman, Sachs & Co. 
The complaint charges defendants with violations of the Securities Act 
of 1933 and the Securities Exchange Act of 1934.
The Company allegedly issued a registration statement and prospectus 
that contained materially false and misleading information and failed 
to disclose material information.  
The prospectus was issued in connection with the Company's initial 
public offering of 8,000,000 shares of common stock, at $19.00 per 
share that was commenced on or about March 30, 1999.  The complaint 
alleges that the prospectus was false and misleading because it failed 
to disclose:
     (i) Goldman Sachs' agreement with certain investors to provide 
         them with significant amounts of restricted Ziff-Davis shares 
         in the IPO in exchange for exorbitant and undisclosed 
         commissions; and 
    (ii) the agreement between Goldman Sachs and certain of its 
         customers whereby Goldman Sachs would allocate shares in the 
         IPO to those customers in exchange for the customers' 
         agreement to purchase Ziff-Davis shares in the aftermarket at 
         pre-determined prices 
For more information, contact Marc S. Henzel by Mail: 210 West 
Washington Square, Philadelphia, PA 19106 by Phone: (215) 625-9999 or 
(888) 643-6735 by Fax: (215) 440-9475 by E-Mail: mhenzel182@aol.com or 
visit the firm's Website: http://members.aol.com/mhenzel182
      
                              *********
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, Aurora Fatima 
Antonio 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 240/629-3300.
                  * * *  End of Transmission  * * *