/raid1/www/Hosts/bankrupt/CAR_Public/011113.mbx
C L A S S A C T I O N R E P O R T E R
Tuesday, November 13, 2001, Vol. 3, No. 222
Headlines
AETNA INC.: Bernstein Liebhard Commences Securities Suit in S.D. NY
ARKANSAS: Suit Against Sebastian County Jail Receives Certification
AUCTION HOUSES: Antitrust Suit Trial Commences Vs Sotheby's Chairman
CALIFORNIA: San Diego Port District Settles Benefits Suit For $15M
CHARTER COMMUNICATIONS: Spartanburg Residents File Over-Billing Suit
DRILLING COMPANIES: Settles Wage Antitrust Suit For $75 Million
ENRON CORPORATION: Federman Sherwood Lodges S.D. TX Securities Suit
INTERWOVEN INC.: Schiffrin Barroway Files Securities Suit in S.D. NY
LAS VEGAS: Fraud Suspect Sues Police Department For Seizing $23M Cash
NEW JERSEY: Doctor Sued For Falsely Introducing Employee as "Doctor"
NOVEN PHARMACEUTICALS: Barrack Rodos Lodges S.D. FL Securities Suit
NUCLEAR WEAPONS: Evidence of Discrimination Found At Nuclear Sites
OHIO: Hamilton County Sued For Allowing Unauthorized Morgue Pictures
OPLINK COMMUNICATIONS: Milberg Weiss Files Securities Suit in S.D. NY
ORAPHARMA INC.: Schiffrin Barroway Commences S.D. NY Securities Suit
PHILIPS LIGHTING: Workers Sue For Chemical Exposure In WV Operations
SONUS NETWORKS: Schiffrin Barroway Lodges Securities Suit in S.D. NY
STORAGE USA: Wechsler Harwood Commences Securities Suit in Tennesee
TALISMAN ENERGY: Denies Sudan Operations Human Rights Violations
TELEPHONE INDUSTRY: Veiled Phone Facts Limit Right To Sue
TIDEL TECHNOLOGIES: Emerson Firm Files Suit For Securities Violations
UNITED KINGDOM: Discussions Re FMD Damages Suit Vs. Government Begin
UNITED STATES: Challenge Regarding Move Against Suicide Law Begins
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AETNA INC.: Bernstein Liebhard Commences Securities Suit in S.D. NY
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Bernstein Liebhard and Lifshitz LLP initiated a securities class action
on behalf all persons who acquired Aetna, Inc. (NYSE: AET) securities
between December 13, 2000 and June 7, 2001.
The case is pending in the United States District Court for the
Southern District of New York against the Company, and William H.
Donaldson, and John W. Rowe, M.D., who are officers and /or directors
of the Company.
The complaint charges defendants with violations of sections 10(b) and
20(a) the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder.
The complaint alleges that during the class period, defendants issued
to the investing public false and misleading information that
materially misstated the Company's condition and prospects.
Moreover, Aetna allegedly failed to disclose material information
necessary to make its prior statements not misleading.
Specifically, defendants issued multiple press releases and other
public statements that touted the Company's management tools, systems,
procedures and general management capacity to know and hold down its
costs in the highly competitive health insurance market in which it was
operating.
However, defendants knew that such management systems, procedures and
controls for monitoring such costs were lacking but chose to conceal
Aetna's defective systems from investors.
As a result, the price of the Company's common stock was artificially
inflated throughout the class period.
Between April 10, 2001 and May 8, 2001, the Company made a series of
disclosures that shocked investors by disclosing earnings well below
expectations due to higher-than-anticipated medical costs during the
fourth quarter of 2000 and the first quarter of 2001.
Apparently, these disappointing results were the result of:
(1) embarrassingly faulty record-keeping which caused the payment
of millions of dollars in medical claims for former clients;
and
(2) the woeful absence of even minimal management control systems
that would let management know what Aetna's obligations and
proper medical costs were.
In response to this announcement, shares of Company stock, which had
traded as high as $43.00 per share during the class period, lost
approximately 40% of their value and closed at $25.81 on June 11, 2001.
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 or by E-mail: AET@bernlieb.com or
visit the firm's Website: www.bernlieb.com
ARKANSAS: Suit Against Sebastian County Jail Receives Certification
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US District Judge Stephen Reasoner granted class certification to a
lawsuit charging the state of delaying psychological examinations and
treatment for mentally ill Sebastian County jail inmates.
Bettina Brownstein, representative of the Arkansas chapter of the
American Civil Liberties Union, and Paul James filed the suit in August
on behalf of former inmate James M. Terry.
The suit claims that Terry was held for months without getting
treatment for psychotic disorder, and alleges that the delays in
evaluation and treatment represent cruel and unusual punishments, a
violation of the constitution's eighth amendment.
The ruling meant that all county jail inmates ordered for state
hospital treatment or evaluation will be included in the suit.
Jay Wills, an attorney for the state Human Services Department, said
the state agrees there is a problem, but not one that amounts to cruel
and unusual punishment.
The trial is set to begin Dec. 10.
AUCTION HOUSES: Antitrust Suit Trial Commences Vs Sotheby's Chairman
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A government prosecutor asserted that Sotheby's A. Alfred Taubman
conspired with rival auction house Christie's to fix sellers'
commission fees instead of undercutting each other's rates.
Trial in the antitrust suit against the two largest auction houses
commenced Friday, with Department of Justice prosecutor John Greene
making his opening statements before the Manhattan federal court.
Greene alleged that Taubman congratulated prot,g,e Diana Brooks for a
"job well done" when auctioneer Christie's announced in 1995 it was
changing commission rates charged to sellers.
Brooks, the former Sotheby's Chief Executive, allegedly had
successfully carried out Taubman's plans to set commissions charged by
the two auction houses.
The 76-year-old Taubman, a Detroit real estate magnate who is the
controlling shareholder of Sotheby's, was indicted in May along with
Sir Anthony Tennant, Christie's former chairman, for allegedly
masterminding an international price-fixing conspiracy that operated
between 1993 and 1999.
Tennant, 70, a British citizen, has said he plans to remain in England
and will not face trial in the United States.
Greene alleged that Taubman and Tennant held secret meetings to devise
ways to grow profits after a slump in the auction firms' earnings
started in 1993.
As part of the scheme, they allegedly agreed to eliminate policies that
allowed auction firms to waive the fees or negotiate them downward.
The federal investigation into possible price fixing by the auction
houses led Taubman and Brooks to resign from their positions in
February 2000.
Sotheby's pleaded guilty to an antitrust and agreed to pay a $45
million fine while both firms agreed to settle a customers' class
action by paying a total of $512 million.
Taubman has consistently maintained his innocence, and placed the blame
squarely on Brooks, who pleaded guilty to her role in the alleged
scheme, for orchestrating it as a way to boost her own compensation.
Robert Fiske, Taubman's lawyer, said Brooks had agreed to testify
against Taubman to avoid a three-year prison term, saying "Alfred
Taubman became Dede Brooks' get-out-of-jail-free card."
He further asserted that Taubman, who had a net worth of about $700
million at the time of the alleged conspiracy, had no motive to
spearhead such a scheme.
"He had it all. ... He had the reputation of a distinguished
businessman and philanthropist. ... What would motivate Alfred Taubman
to throw everything away that he had worked for since age 9?" Fiske
asked.
If Taubman is convicted, he could face a maximum of three years in
prison. The one antitrust charge against him also carries a possible
$350,000 fine that can be increased based on the loss suffered by the
victims.
Davidge, who resigned in December 1999, turned over internal documents
that prosecutors allege support the price-fixing charges. Christie's
gave the government the papers and agreed to cooperate in the probe in
exchange for amnesty from prosecution.
Greene further added that this was a simple price-fixing case "Taubman
and Tennant had a problem ... their subordinates implemented the price-
fixing conspiracy. In doing so, Taubman chose to ignore the antitrust
laws of the United States."
Fiske reputed these, saying there was nothing that implicated Taubman
in the some 600 pages turned over by Davidge.
"Not once ... is there any reference ... that say Alfred Taubman was
engaged in price fixing," he said.
CALIFORNIA: San Diego Port District Settles Benefits Suit For $15M
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The San Diego Unified Port District agreed to settle for $15 million
the class action filed by its current and former employees accusing the
district of under-funding their pensions.
State Judge Robert May approved the settlement that will increase the
benefits of more than 800 current and former district workers like
harbor police, maintenance workers and equipment operators.
The settlement will likely cost the district roughly $15 million,
according to attorney Michael Conger, who represented the group.
The suit, filed in San Diego Superior Court, accused the district of
using incorrect methods to calculate their retirement benefits since
1964.
Conger said the district calculated retirement benefits using a formula
that includes multiplying a worker's final-year salary by several
factors.
He further asserts that the district routinely failed to include
various factors in making the calculation, such as pay for unused
vacation, into workers final-year salary.
Because of the statute of limitations, the lawsuit involved only those
underpayments made from July 1995 forward, he added.
Employees and the port contribute a certain amount each payday toward
the employee's retirement benefit and as a result of the settlement,
will now have to pay a slightly larger retirement contribution.
Under the settlement, retired workers will get lump-sum payouts plus a
7 percent increase in their future retirement checks.
Those still working will have a choice of a flat 10 percent increase in
their final pensions or an increase in one of the factors used to
calculate their retirement.
CHARTER COMMUNICATIONS: Spartanburg Residents File Over-Billing Suit
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Two Spartanburg City residents sued Charter Communications, alleging
the Company billed them for services they did not want.
Nikki Nicholls and Geraldine M. Barber filed the suit on behalf of
Company subscribers all over South Carolina, saying Charter over-billed
customers in three ways:
(1) Requiring rental of cable converter boxes that are not needed;
(2) Requiring rental of digital converter boxes that serve no
purpose;
(3) Adding a wire maintenance fee to monthly bills without
customers' consent
The suit also names the city of Spartanburg and, according to
plaintiffs attorney Michael Spears, could have "massive" implications
for the way cities and counties grant franchises to Charter and other
cable companies.
He also asserts that government bodies have a responsibility to make
sure their citizens are billed fairly for cable service, since the
Company and other cable companies pay a fee to cities and countries in
order to secure the right to do business.
He also mentioned that other utility companies, like Duke Power or
Piedmont Natural Gas, must go before the state Public Service
Commission before changing rates.
The state, however, has no means of regulating cable TV rates, so it is
left up to local government bodies to be the watchdog. Spears added
that he believed the city of Spartanburg failed to give its citizens
proper protection.
The case may also shed light on the fees cities and counties attract
from cable franchises - fees that are generally passed on to customers
and represent a "hidden tax."
Charter Vice President Linda Reisner, said she believes "customers do
not get (one of the services listed in the suit) unless they ask for
it," though she added she is not sure how local franchises handle all
billing matters.
The Company will ask the court to dismiss the case, Reisner said, while
Spartanburg city attorney Spencer King could not be reached for
comment.
DRILLING COMPANIES: Settles Wage Antitrust Suit For $75 Million
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Several offshore drilling firms will settle for about $75 million the
antitrust class action filed by offshore workers, charging the
Companies with fixing wages and benefits for thirty years.
The suit was filed against fifteen groups of companies, which
represents about 50 affiliated businesses. These companies are the
bulk of the offshore firms that primarily drill in the Gulf of Mexico.
The workers commenced the suit in August 2000, alleging the Companies
"conspired to avoid competition among them for drilling labor by
illegally fixing the wages and benefits paid their drilling employees."
The Companies allegedly conducted quarterly surveys to make sure that
all were adhering to the agreed-upon wages, which meant lower turnover,
decreased training costs and reduced the likelihood of fluctuating
labor costs.
The firms that have revealed their participation in the settlement:
(1) Transocean Sedco Forex Inc., one of the largest offshore
drillers, - $15 million. The Company recently merged with R&B
Falcon, also involved in the case;
(2) Pride International, Inc. - $9 million;
(3) Nabors Drilling, Inc. - $9.7 million;
(4) Marine Drilling - $5 million;
(5) Diamond Offshore, Inc.- $9.5 million;
(6) Chiles Offshore, Inc. - $1 million
Other firms will also settle the suit, but their payout amounts were
not available:
(i) Parker Drilling Offshore Corp.,
(ii) Pool International,
(iii) Noble Drilling,
(iv) Sundowner,
(v) Helmerich & Payne International,
(vi) Santa Fe International,
(vii) Cliffs Drilling Co.,
(ix) Enso International Offshore Co. and
(x) Atwood Oceanics Inc.
According to the Houston Chronicle, more than 60,000 workers could be
affected by the settlement - including all those aboard offshore rigs,
such as drillers, mechanics, maintenance crew and kitchen staff.
The offshore laborers would likely receive back paychecks by spring.
Each employee's amount will depend on the number who file claims to
participate and the amount of time on the job.
Final approval is expected in April.
ENRON CORPORATION: Federman Sherwood Lodges S.D. TX Securities Suit
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Federman & Sherwood filed a securities class action on behalf of
purchasers of Enron Corporation (NYSE:ENE) common stock during the
period between January 18, 2000 and October 17, 2001, inclusive.
The suit, filed in the United States District Court for the Southern
District of Texas (Houston Division), names the Company and certain of
its officers and directors as defendants.
The suit alleges 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 during
the class period.
Specifically, the complaint alleges that Enron issued a series of
statements concerning its business, financial results and operations
that failed to disclose:
(i) that the Company's Broadband Services Division was
experiencing declining demand for bandwidth and the Company's
effort to create a trading market for bandwidth were not
meeting with success as many of the market participants were
not creditworthy;
(ii) that the Company's operating results were materially
overstated as result of the Company failing to timely write-
down the value of its investments with certain limited
partnerships which were managed by the Company's chief
financial officer; and
(iii) that the Company was failing to write-down impaired assets on
a timely basis in accordance with GAAP.
On October 16, 2001, the Company surprised the market by announcing
that it was taking non-recurring charges of $1.01 billion after-tax, of
($1.11) loss per diluted share, in the third quarter of 2001, the
period ending September 30, 2001.
Subsequently, Enron revealed that its Chief Financial Officer held a
material portion of the responsibility related to the unwinding of
investments with certain limited partnerships.
The Company also revealed that it would be eliminating more than $1
billion in shareholder equity as a result of its unwinding of the
investments.
As this news began to be assimilated by the market, the price of the
Enron's common stock dropped significantly.
During the class period, Company insiders disposed of over $73 million
of their personally held common stock to unsuspecting investors.
For more information, contact William B. Federman by Mail: 120 N.
Robinson, Suite 2720 Oklahoma City, OK 73102 by Phone: (405) 235-1560
or by Fax: (405) 239-2112
INTERWOVEN INC.: Schiffrin Barroway Files Securities Suit in S.D. NY
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Schiffrin and Barroway LLP initiated a securities class action on
behalf of purchasers of Interwoven, Inc. (NASDAQ:IWOV) common stock
between October 7, 1999 and December 6, 2000, inclusive.
The action is pending in the United States District Court, Southern
District of New York against Interwoven, certain of its officers and
its underwriters.
The complaint alleges violations of Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Last October 1999, the Company commenced an initial public offering of
3,150,000 of its shares of common stock at an offering price of $17 per
share.
In connection therewith, Interwoven 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 Company shares issued in
connection with the IPO; and
(ii) the underwriters had entered into agreements with customers
whereby the underwriters agreed to allocate Company 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 further details, contact Marc A. Topaz or Stuart L. Berman by
MailL: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004
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
LAS VEGAS: Fraud Suspect Sues Police Department For Seizing $23M Cash
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Fraud suspect, Franklyn Perry, has filed a class action suit against
the Las Vegas Metropolitan Police Department, in order to force them to
return the nearly $23 million in cash they seized from Perry.
The suit contends, "Monies seized by Metro were not monies obtained
from, nor employed in, furtherance of the alleged criminal violations
now against Perry."
Perry is accused of defrauding investors through pyramid schemes. In
early 1985, he was convicted of defrauding 50 investors out of $3.3
million. He is also being held without bail on multiple sexual assault
and pornography charges involving a juvenile victim.
Police seized the cash from Perry's office and residences after they
arrested him in July.
The suit alleges that the police have been unjustly enriched by their
unlawful seizure of the plaintiffs' money.
According to the lawsuit, "The class of plaintiffs is believed to be in
excess of 1,000 individuals."
The suit, filed in the Las Vegas District Court, also names six other
plaintiffs, investors:
(1) Robert Tidmore,
(2) Maggie Tidmore,
(3) Robert Taylor,
(4) Vernon Cypher
(5) Peggy Cypher and
(6) Dominick Giambona
Other investors have expressed interest in joining the suit, according
to the plaintiffs' attorney, Barry Levinson.
Police spokesman Sgt. Chris Darcy declined to comment on the lawsuit's
allegations, saying department policy prohibits comment on pending
litigation.
NEW JERSEY: Doctor Sued For Falsely Introducing Employee as "Doctor"
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Nagel Rice Dreifuss & Mazie filed a class action lawsuit against Dr.
Joseph Dello Russo, a Bergenfield, New Jersey ophthalmologist, often
cited as a laser eye-surgery expert in newspapers and on TV.
The lawsuit alleges that Dr. Dello Russo introduced William T. Kellogg
to his patients as a doctor during the period when his license was
revoked. Kellogg's license was revoked between May 1995 and March
2000, and was then reinstated with conditions.
Dr. Dello Russo acknowledges hiring a doctor whose medical license had
been revoked by New Jersey officials, and said he introduced
Kellogg as "Bill" or "Dr. Kellogg."
However, he says Kellogg worked only as a technician and he was not
involved in any surgeries or decisions about patient care, "If he had
any problem, he came to me, and I saw those patients."
Dr. Dello Russo lodged another kind of defense, saying the lawsuit is
part of an effort by Nagel Rice to "extort money" from his business.
Nobody from Nagel Rice could be reached for comment.
On its Web site, New Jersey's Board of Medical Examiners states that
Kellogg has faced disciplinary charges, however, no further details
about his problems were available.
NOVEN PHARMACEUTICALS: Barrack Rodos Lodges S.D. FL Securities Suit
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Barrack, Rodos & Bacine commenced a securities class action on behalf
of all investors who purchased or otherwise acquired the common stock
of Noven Pharmaceuticals, Inc. (NASDAQ:NOVN) between March 27, 2001,
and November 2, 2001, inclusive.
The suit was filed in commenced in the United States District Court for
the Southern District of Florida against Noven and certain of its
officers and directors.
The suit charges the defendants with violations of Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 by, among other things,
issuing to the investing public false and misleading financial
statements about sales and projected sales of key products to Swiss
pharmaceutical giant, Novartis Pharma AG.
Because of the alleged issuance of a series of false and misleading
statements, the price of Noven's common stock was artificially inflated
during the class period.
For further details contact the Shareholder Relations Manager by Mail:
3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103 by
Phone: 800-417-7305 or 215-963-0600 by Fax: 888-417-7306 or 215-963-
0838 or by E-mail: msgoldman@barrack.com.
NUCLEAR WEAPONS: Evidence of Discrimination Found At Nuclear Sites
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The Equal Employment Opportunity Commission (EEOC) has found evidence
that four contractors at the Savannah River Site, in South Carolina,
discriminated against black employees.
According to an Associated Press report, the agency also said a
racially hostile work environment existed at the nuclear weapons site,
while an EEOC letter of discrimination also stated that evidence showed
a pattern and practice of discrimination against blacks.
93 Savannah River Site employees filed complaints against these
contractors:
(1) Westinghouse Savannah River Company, the site's top
contractor,
(2) Bechtel Savannah River Inc.,
(3) BWXT Savannah River Company,
(4) British Nuclear Fuels Ltd. and
(5) Savannah River Corp.
The employees filing the complaint are among 99 Savannah River Site
workers who have filed federal racial discrimination lawsuits against
the contractors.
Westinghouse disagrees with the EEOC's findings and plans to ask the
agency to review the cases.
Company spokesman, Will Callicott, said Westinghouse does not
understand why the EEOC is taking action now, because it has been
discussing resolving cases with individual plaintiffs for more than a
year.
OHIO: Hamilton County Sued For Allowing Unauthorized Morgue Pictures
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Hamilton County, Ohio faces a possible class action lawsuit after
allowing a photographer to take unauthorized pictures of bodies in the
Hamilton County morgue.
Attorney Stan Chesley filed the suit, saying the county violated the
Civil rights of more than 200 people who had a deceased family member
in the morgue between August 2000 and January 2001.
Chesley claimed that the county disregarded the privacy and integrity
of the bodies in their custody by allowing photographer Thomas Condon
to take pictures.
Chesley said, in court documents, that the county violated the
plaintiffs "constitutional rights of privacy, liberty and due process."
He further alleged the county deprived the plaintiffs of protections
guaranteed by the First and Fourteenth Amendments to the U.S.
Constitution.
"The Defendants' conduct constitutes an arbitrary exercise of power and
abuse of government power and shocks the conscience," Chesley charged
in the documents.
He added, "Defendants have acted maliciously, with deliberate
indifference and in reckless disregard to the privacy rights,
associational rights, property rights and other federally protected
rights of the plaintiffs."
Condon and former assistant coroner, Dr. Jonathan Tobias, were
convicted of abuse of a corpse last month, but both are seeking new
trials. They are due to be sentenced next month in Hamilton Common
Pleas Court.
OPLINK COMMUNICATIONS: Milberg Weiss Files Securities Suit in S.D. NY
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Milberg Weiss Bershad Hynes and Lerach LLP initiated a securities class
action lawsuit on behalf of purchasers of Oplink Communications Inc.
(NASDAQ:OPLK) securities between October 3, 2000 and December 6, 2000,
inclusive.
The action is pending in the United States District Court, Southern
District of New York against the Company and:
(1) Joseph Y. Liu (CEO),
(2) Bruce Horn (CFO),
(3) Ian Jenks (Chairman), and
(4) Robertson Stephens Inc.
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.
Last October 2000, Oplink commenced an initial public offering of
13,700,000 of its shares of common stock at an offering price of $18
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) Robertson Stephens had solicited and received excessive and
undisclosed commissions from certain investors in exchange for
which Robertson Stephens allocated to those investors material
portions of the restricted number of Company shares issued in
connection with the IPO; and
(ii) Robertson Stephens had entered into agreements with customers
whereby Robertson Stephens 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 further 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 or visit the firm's Website: www.milberg.com
ORAPHARMA INC.: Schiffrin Barroway Commences S.D. NY Securities Suit
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Schiffrin and Barroway LLP initiated a securities class action on
behalf of purchasers of OraPharma, Inc. (NASDAQ:OPHM) common stock
between March 9, 2000 and December 6, 2000, inclusive.
The action is pending in the United States District Court, Southern
District of New York against the Company, certain of its officers and
its underwriters.
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 March 2000, Orapharma commenced an initial public offering of
4,000,000 of its shares of common stock, at an offering price of $17
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
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
PHILIPS LIGHTING: Workers Sue For Chemical Exposure In WV Operations
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Masry & Vititoe, the law firm that hired Erin Brockovich, is planning
to launch a class action against Philips Electronics and Philips
Lighting Company.
The suit will be filed on behalf of workers in a West Virginia light
bulb factory in Fairmont, where thousands of people were allegedly
exposed regularly to mercury, beryllium and other hazardous chemicals,
the Associated Press recently reported.
Attorney Ed Masry of the California-based firm will meet with hundreds
of potential plaintiffs in the class-action suit he is about to file
against Philips.
Brockovich, who inspired the Oscar-winning Hollywood movie, also may
attend the gathering.
The case, which will be filed in Marion County Circuit Court, will name
the Company as the primary defendant. It has operated the Fairmont
factory since it bought the property from Westinghouse Electric
Corporation in 1983.
Westinghouse and its successor, Viacom Inc., will be named co-
defendants.
Philips Lighting, which at its height employed 2,700 people at the
north central West Virginia factory, routinely exposed workers to at
least nine dangerous chemicals, a recently-issued statement from Masry
alleges.
The statement alleges workers in the two-story plant endured long hours
in temperatures above 100 degrees, with poor ventilation and without
proper gear, such as respirators and impermeable gloves.
Masry's statement described the poor conditions in the dust-filled
plant in which it was often difficult to see across to the other side
of the building.
At times, employees were given gear offering insufficient protection,
such as knit gloves, earplugs, and paper medical masks.
Thousands of bulbs broke every day and many employees received only
superficial treatment for cuts that exposed them to chemicals, the
lawyers charge.
Those chemicals include methylene chloride, polychlorinated biphenyls,
benzene, chromium trioxide and chlorinated fluorocarbons.
"Our clients have suffered significant personal injuries and deaths
from what we believe are the hazardous substances they have been
exposed to," Masry's statement said.
At its peak, Philips Lighting had some 2,700 employees in Fairmont,
where the jobs were an attractive alternative to coal mining, but the
work force gradually has been cut. By 1995, only 500 remained on the
job and only 125 people currently work in Fairmont.
Most of those in the proposed class have worked at the plant for more
than 25 years, and some have been there more than 40 years, Masry said.
Masry and Brockovich gained national attention after rallying the town
of Hinkley, California, to sue Pacific Gas and Electric in 1993 over
groundwater contamination.
Philips Lighting makes a variety of lamps, from fluorescent tubes for
offices to auto headlights, floodlights and aviation landing lights.
Worldwide, the company employs some 50,000 people in 16 countries.
SONUS NETWORKS: Schiffrin Barroway Lodges Securities Suit in S.D. NY
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Schiffrin and Barroway LLP initiated a securities class action on
behalf of purchasers of Sonus Networks, Inc. (NASDAQ:SONS) common stock
between May 24, 2000 and December 6, 2000, inclusive.
The action is pending in the United States District Court, Southern
District of New York against the Company, certain of its officers and
its underwriters.
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 May 2000, Sonus commenced an initial public offering of 5,000,000 of
its shares of common stock, at an offering price of $23 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
pre-determined prices.
For further 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
STORAGE USA: Wechsler Harwood Commences Securities Suit in Tennesee
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Wechsler Harwood Halebian and Feffer LLP initiated a securities class
action in the Chancery Court of Shelby County, Tennessee against
Storage USA, Inc.
The suit was filed on behalf of investors who are or will be threatened
with injury arising out of a plan whereby Security Capital Group, Inc.
will pay $42.00 for each publicly held share of the Company to take the
Company private.
The suit also names as defendants certain of Storage USA's officers and
directors.
The suit specifically alleges that the proposed transaction is unfair
to existing public stockholders in light of the strong financial
results recently reported by the Company.
The individual directors of Storage USA are, and will continue to be,
in breach of their fiduciary duties owed to the Company's public
shareholders.
For more information, contact Patricia Guiteau by Phone: 1-877-935-7400
by E-mail: PGuiteau@whhf.com or visit the firm's Website: www.whhf.com
TALISMAN ENERGY: Denies Sudan Operations Human Rights Violations
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Oil giant Talisman Energy Inc. strongly disputed allegations in the
class action filed by the American Anti-slavery Group challenging the
Companies' Sudan operations.
The suit was commenced last week in the U.S. District Court for the
Southern District of New York seeking compensation for victims of the
Sudan civil war.
Talisman has been criticized for its operations in the country, where
it has a 25% interest in its largest oil project, which churches and
human rights organizations allege funds the Sudanese government's 18-
year war against the Christian south.
The suit was filed on behalf of Rev. John Sudan Gaduel, the
Presbyterian Church of Sudan and three individuals.
The suit alleges Talisman is violating international law for
"participating" in the Sudanese government's "ethnic cleansing" of
Christian and other non-Muslim minorities.
Carey D'Avino, the plaintiffs' lawyer says, "In American jurisprudence,
corporations and people who act outside the authority of the state
violate international law and can be brought to justice in American
courts under the Alien Tort Claim Act."
Talisman spokesman, David Mann, said they were highly disappointed,
saying "Talisman strongly believes in respect for human rights anywhere
in the world. We feel we have actively promoted transparency, respect
for human rights, and an end to the civil war in Sudan."
Talisman said it hopes its positive contributions will come to light in
the course of any discussions related to the lawsuit.
TELEPHONE INDUSTRY: Veiled Phone Facts Limit Right To Sue
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Under agreements being mailed to consumers, telephone companies are
limiting lawsuits by saying that by using their services, customers
agree to waive their rights to sue, even in class-action lawsuits.
The agreements mailed by companies like AT&T, MCI, Sprint & Qwest
states that any disputes that cannot be resolved informally must be
resolved through binding arbitration.
The companies say arbitration is quicker and cheaper than litigation to
resolve disputes, but consumer advocates say arbitration often makes it
harder to win redress.
"It's unclear how difficult it will be for consumers to resolve
disputes they thought were unfair," said Gene Kimmelman of Consumers
Union. "The theoretical benefits of the change may be vastly
diminished by these binding-arbitration clauses."
Dorothy Attwood, head of the FCC division that regulates the carriers,
urges customers to read the agreements being sent by their long
distance companies.
"If they don't like the terms and conditions, they should
find a new phone company," she said.
Sprint and Qwest are using only their Web sites to inform consumers of
rate changes and altered conditions of service (waiver of right to sue,
for example), while AT&T and MCI will send out information to their
customers about rate changes and altered conditions of service.
The new rules for disclosure of information were intended to result in
more open disclosures to consumers instead of being buried in unusually
unread FCC documents, say consumer advocates.
The new rules took effect August 1, 2001.
TIDEL TECHNOLOGIES: Emerson Firm Files Suit For Securities Violations
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The Emerson Firm commenced a securities class action on behalf of
purchasers of Tidel Technologies, Inc. (Nasdaq:ATMS) securities between
April 6, 2000 and February 8, 2001 inclusive.
The complaint alleges that during the class period, the Company falsely
touted its sales of automated teller machines, or ATMs, at a "record"
pace.
These materially false and misleading statements allowed Tidel to begin
trading on the Nasdaq national trading system, which would have been
impossible without the Company's false and misleading statements and
the consequent artificial inflation of the Company's stock price.
When Tidel finally disclosed that its largest customer's orders would
be at "substantially reduced levels for the quarter ending March 31,
200l," its stock price declined precipitously.
The lawsuit alleges that the Company knew during the time period but
did not disclose that its largest customer was in the process of
switching to a competitor and reducing orders.
The claims asserted arise under Sections 10 and 20 of the Securities
Exchange Act of 1934.
Named as defendants in the suit are Tidel and:
(1) James T. Rash, Chief Executive Officer, Chief Financial
Officer and Chairman of the Board of Directors,
(2) Mark K. Levenick, Chief Operating Officer and director,
(3) James L. Britton III, director,
(4) Jerrell G. Clay, director
For more information, contact John G. Emerson, Jr. by Mail: 2600 S.
Gessner, Suite 600 Houston, Texas 77063 by Phone: (713) 331-3680 by
Fax: (713) 789-0033 by E-mail: jge@emersonfirm.com
UNITED KINGDOM: Discussions Re FMD Damages Suit Vs. Government Begin
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Rural businesses are taking the first step in a planned legal action
against the Government over foot-and mouth disease, the Western Daily
Press recently reported.
Traders meeting in Birmingham recently are set to found the UK Rural
Business Campaign in order to bring a class action for the financial
losses suffered during the epidemic.
The Powys Rural Business Campaign organized the meeting, where Stephen
Alexander, partner of Class Law Solicitors, and other experts will
speak and advise on the strategy to be followed.
Mr. Alexander said, "The Government does not want to hold a public
inquiry. However, we will be presenting evidence in open court and
their lawyers will have to respond."
He further stated that "The public will get the inquiry it deserves -
and businesses the damages they deserve - through the court
unless this matter is settled in their favor."
He said the group wants other people affected to join in a united legal
action to recover damages.
UNITED STATES: Challenge Regarding Move Against Suicide Law Begins
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Oregon Attorney General Harody Myers and four Oregon residents recently
commenced a legal motion to impose a stay on a federal directive
authorizing federal drug agents to take action against any doctor
prescribing lethal drugs to be used in the commission of a suicide.
According to a New York Times report, the four citizens desire to avail
themselves of the legal right in Oregon to commit an assisted suicide.
Oregon is the only state in the nation to allow physician-assisted
suicide. A terminally ill patient must apply to the state for
permission to obtain the lethal medication that would enable the plan
for an assisted suicide.
The law providing for this procedure was passed in Oregon five years
ago by 60 percent of those who voted.
Attorney General John Ashcroft has moved against the state's suicide
law, a move that has been highly criticized by most of the state's
officials.
"This Attorney General is supposed to be figuring out who's responsible
for the anthrax," said Governor John Kitzhaber, a Democrat and a
physician. "To introduce this divisive issue at this point in time
is just, to me, unthinkable."
The State filed a broader lawsuit, arguing that Ashcroft exceeded his
authority under federal drug laws and was illegally seeking to
interfere with Oregon's authority to regulate medicine.
Senator Gordon H. Smith, a Republican who is up for re-election next
year, supported Ashcroft's decision, saying "For me, it's an issue of
principle, upon which I'm prepared to stake my political career."
For terminally ill people like the patients who are plaintiffs in
the lawsuit and the doctors involved, the battle over the law has
abruptly placed them in an ethically induced limbo.
A few doctors said they were exploring other legal avenues for
continuing to prescribe lethal drugs even if the state's motion was
unsuccessful.
However, many doctors said that unless the stay was approved, they
would be unwilling to prescribe the drugs, because they could lose
their license to write prescriptions.
Opponents of the law argue that taking one's life is an extreme and
unjustified act.
"We can take care of pain and depression and anxiety in Oregon like
they can in the other 49 states without giving assisted suicide to our
patient," said Dr. Greg Hamilton, a spokesman for a group in Oregon
called Physicians for Compassionate Care.
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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-
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