/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/020401.mbx C L A S S A C T I O N R E P O R T E R Monday, April 1, 2002, Vol. 4, No. 63 Headlines GERMANY: Ex-Soldiers Sue Over Damages From Working On Radar Equipment HMO LITIGATION: WA Health Insurers Face Suit Over Fraudulent Billing JAPAN: Tokyo Court Rejects Suit Seeking Damages for WWII Detainment MERIDIA LITIGATION: Schiffrin Barroway Files Suit Over Weight Loss Drug OHIO: Parties in Cincinnati Racial Profiling Suit Negotiate Settlement OKLAHOMA: Garfield County Jail Sued For Violation of Inmates' Rights TOBACCO INDUSTRY: Suit Seeks To Divert Tennessee's Tobacco Payment Securities Fraud ARTHUR ANDERSEN: Former Fed Chair Calls For A Halt To Securities Suits BRISTOL-MYERS SQUIBB: Bernard Gross Lodges Securities Suit in S.D. NY BRISTOL-MYERS SQUIBB: Cauley Geller Launches Securities Suit in S.D. NY BRISTOL-MYERS SQUIBB: Weiss Yourman Commences Securities Suit in NY DAIMLERCHRYSLER AG: Asks Judge To Dismiss Tracinda Shareholder Suit JDS UNIPHASE: Milberg Weiss Commences Securities Fraud Suit in N.D. CA JP MORGAN: Wolf Haldenstein Commences Securities Suit in S.D. New York MEASUREMENT SPECIALTIES: Cauley Geller Lodges Securities Suit in NJ MEASUREMENT SPECIALTIES: Kaplan Fox Commences Securities Suit in NJ MEASUREMENT SPECIALTIES: Shalov Stone Lodges Securities Suit in NJ MEASUREMENT SPECIALTIES: Schiffrin Barroway Files Securities Suit in NJ METAWAVE COMMUNICATIONS: Wolf Haldenstein Files Securities Suit in WA NEWPOWER HOLDINGS: Cauley Geller Commences Securities Suit in S.D. NY NVIDIA CORPORATION: Kaplan Fox Commences Securities Suit in N.D. CA VIROPHARMA INC.: Wolf Haldenstein Commences Securities Suit in E.D. PA WASTE MANAGEMENT: SEC Files Securities Suit For 1998 Earnings Revision ********* GERMANY: Ex-Soldiers Sue Over Damages From Working On Radar Equipment --------------------------------------------------------------------- The German government faces six class actions filed on behalf of former German soldiers who allegedly contracted cancer for working and operating in military radar machines, Reuters reports. Lawyer Reiner Geulen launched the suits on behalf of 773 affected soldiers, saying the government failed to help the victims of exposure to radiation from the 1950s to the 1980s. The suit seeks minimum damages of EUR 60,000 ($52,770) per victim. Mr. Geulen stated that another class action would be launched in May against radar equipment manufacturers, seeking a total of US$350 million in compensation. The suit would name as defendants: (1) Raytheon Company, (2) Lockheed Martin Corporation, (3) Lucent Technologies Inc., and (4) General Electric A Defense Ministry spokeswoman rejected the suit's accusation that Defense Minister Rudolf Scharping had broken a promise to deal with demands for compensation quickly. "We are examining the cases as quickly and generously as possible," she told Reuters. HMO LITIGATION: WA Health Insurers Face Suit Over Fraudulent Billing -------------------------------------------------------------------- Two of Washington's largest health insurance companies face two class actions filed by two local doctors groups in Pierce County Superior Court, alleging the Companies systematically deny and delay reimbursing doctors for the services they provide patients, Reuters reports. The Franciscan Medical Group and the Tacoma Orthopaedic Surgeons, Inc. filed the suits against Premera Blue Cross and Regence BlueShield and their affiliated organizations. The suits allege that the insurers routinely engage in a process called "bundling," which lumps procedures that should be reimbursed separately into one lesser reimbursement. It also accuses the insurers of "downcoding," in which the insurer refuses to reimburse for the actual medical service billed and instead substitutes a lower reimbursement. The suit alleges that the Companies violated laws against criminal profiteering. If the suit is certified as a class action, it could involve more than 22,000 health-care providers in the state, plaintiffs' attorney J. Richard Creatura told Reuters. About 65 doctors and seven midlevel practitioners such as physician assistants have already joined the lawsuits. Neither company yesterday would respond directly to the suits, but Regence spokesman Chris Bruzzo said the Company was disappointed because it had worked hard to address doctors' concerns about its reimbursement practices, Reuters reports. Premera Blue Cross spokesman Scott Forslund declined to address the lawsuit, saying his company was reviewing it. JAPAN: Tokyo Court Rejects Suit Seeking Damages for WWII Detainment ------------------------------------------------------------------- Tokyo's High Court rejected a class action seeking compensation from the Japanese government for 150,000 civilians and military personnel detained in Asia during World War Two, Reuters reports. The suit was filed on behalf of former detainees around the world, including detainees in Britain, New Zealand, the United States and Australia, demanding compensation of US$ 22,000 per person. The Japanese government has maintained that it is not liable for compensation because all World War Two claims were settled in 1951 under the San Francisco peace agreement. A lower court earlier rejected the suit. The seven plaintiffs plan to continue despite the ruling and will launch a final appeal in the seven-year-old case. "We expected more from the Japanese government," 74-year-old Henk Zeeman told Reuters. "If the Constitutional court rules against us, there is nowhere left to appeal - except to public opinion." Takashi Niimi, one of the Japanese lawyers for the group, told Reuters an appeal would be lodged immediately though the courts would likely take about a year to reach a decision. MERIDIA LITIGATION: Schiffrin Barroway Files Suit Over Weight Loss Drug ----------------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a class action on behalf of all persons who were prescribed the weight loss drug Sibutramine, also known as Meridia (Reductil outside the United States). The suit names as defendants Abbott Laboratories Inc., USA (NYSE:ABT), Knoll Pharmaceuticals Co., BASF Corporation and BASF Pharma, due to their responsibility in manufacturing, promoting, marketing, distributing and selling Meridia. The class action seeks to: (1) inform the public that users and consumers of Meridia are at an increased risk of harm and/or death; (2) establish a medical monitoring fund so that every consumer may be tested and treated for the adverse effects of Meridia; (3) reimburse monies paid for the product; and (4) provide compensation to all victims for personal injuries and death. Meridia is a medication commonly prescribed for patients as an anti- obesity medicine. In 2001, Abbott had global sales of $200 million. Meridia has been available since 1997. To date, at least 33 deaths worldwide have been associated with Meridia, including 29 in the U.S. Of the 29 deaths in the US, 19 are directly linked to cardiovascular causes. Meridia is also responsible for 397 serious adverse reactions from use of the drug. Earlier this year, Italian health officials withdrew all Sibutramine products from the market due to 50 adverse health reports. The British Department of Health has reported 200 adverse reactions and two deaths. In France, drug regulators have reported 100 adverse events. On March 19, 2002, Public Citizen, a consumer watchdog group, petitioned the FDA to remove Meridia from the market. According to the FDA, the agency is examining Public Citizen's petition as well as the deaths and illnesses linked to the drug. Meridia was initially developed as an anti-depressant, but during the initial development of the drug, Knoll noted that Meridia had an ability to produce weight loss and, in 1990, Knoll began testing Meridia specifically as an anti-obesity agent. On September 26, 1996, the FDA advisory committee declined to recommend approval of Meridia, claiming that "Sibutramine has an unsatisfactory risk-benefit ratio and, therefore, this reviewer recommends non-approval of the original submission." The committee also expressed concern about blood pressure increase experienced by study participants. Following the FDA's initial disapproval, Knoll pushed for fast track approval. In 1997, the Food and Drug Administration (FDA) did approve Meridia, calling it "moderately effective" at helping patients lose weight. Today, worldwide, Meridia is marketed in seventy (70) countries and sold as Reductil in Europe. It is estimated that 8.5 million people globally have taken Meridia since its approval. An estimated 2 million people in the United States currently take the medication. For more information, contact Tobias L. Milrood by Phone: 888-299-7706 (toll free) or 610-667-7706 by E-mail: info@sbclasslaw.com or visit the firm's Web site: http://www.sbclasslaw.com OHIO: Parties in Cincinnati Racial Profiling Suit Negotiate Settlement ---------------------------------------------------------------------- Settlement negotiations continue in a racial profiling class action against the Cincinnati Division of Police, as parties disagree on who will be chosen to monitor the settlement, WLWT ChannelCincinnati.com reports. Both parties agree that a watchdog should be appointed to monitor the settlement. A letter written by special counsel Billy Martin recommended a new agency that would replace the Citizens Police Review Panel and the Office of Municipal Investigation. City leaders do not want Rev. Damon Lynch, head of the Black United Front, to pick the group while the suit's plaintiffs do not want Mayor Charlie Luken, either. Mayor Luken told WLWT, "I do not want a committee of 30 which will give us anarchy and chaos in terms of our ability to move forward." Both parties said that, whoever monitors a settlement, it must be someone who is trusted and respected by all concerned. "Giving people who are not professional the ability to oversee and run the police department is off the table in my book," Councilman John Cranley told WLWT reporter John London. Retiring Federal Appeals Court Judge Nathaniel Jones has been mentioned as a possibility. Formal talks resume Thursday. OKLAHOMA: Garfield County Jail Sued For Violation of Inmates' Rights -------------------------------------------------------------------- Conditions at the 67-year-old Garfield County jail violate inmates' constitutional rights, according to a recently-filed federal class action in which four lead plaintiffs are attempting to have the jail closed, the Associated Press reports. Attorney Stephen Jones filed the lawsuit recently in Oklahoma City Federal Court on behalf of all the Garfield County inmates against the county commissioners and Sheriff Bill Winchester. Mr. Jones has said that he is considering the possibility of adding the city of Enid and the Enid Police Department to the lawsuit. Mr. Jones said he will not ask for an immediate hearing on the injunction, because of efforts of Mayor Douglas Frantz to find a solution, and because of the sheriff's efforts to increase segregation options. The lawsuit states that "since at least 1996, the board (of county commissioners) has been on notice from the sheriff and the state Department of Health that the conditions of confinement within the jail were in violation of state correctional standards, and, by implication, violated the Fifth, Eighth and Fourteenth Amendments." The amendments apply to punishment without due process of law, cruel and unusual punishments, guarantees of due process of law, and equal protection of law. Sheriff Winchester said assaults are common in the jail, which has little room for separating inmates charged with serious crimes from those involved in less serious crimes. "We have been awfully lucky someone hasn't been killed here," he said. Earlier this month, Garfield County voters rejected a half-cent sales tax increase request to build a new jail, leaving commissioners to look for another solution to avoid closure. Officials hope they can delay closure while they study the possibility of finding a new jail through revenue bonds, or wait for the city of Enid to come up with another plan. Sheriff Winchester notified the city of Enid last week that he would not accept city inmates until they had been charged. "It is in the hands of the federal [government] now," Mr. Jones said. TOBACCO INDUSTRY: Suit Seeks To Divert Tennessee's Tobacco Payment ------------------------------------------------------------------ Lawyers for two Tennessee men recently asked a federal judge to block the state from depositing $102 million in tobacco settlement money into the state treasury, saying smokers are entitled to be compensated for medical expenses before the state gets any of the money, the Associated Press reported. The plaintiffs' attorneys wish to convert the lawsuit to a class action representing all TennCare health plan enrollees who have had tobacco- related injuries treated under TennCare. The attorneys estimate that the expanded suit would cover from 100,000 to one million people depending on the time frame set by the court. A judge has yet to rule on the request. "If a decision is not made about this next payment, it will be gone, like all of the others are gone," attorney Dixie Cooper told Federal Judge Aleta Trauger. Once the money is in the state treasury, she said, her clients will no longer be able to claim it. Ms. Cooper, therefore, is seeking a preliminary injunction to divert the state's next tobacco payment into an interest-bearing escrow account while her clients' lawsuit is pending. The next payment of $102 million is due April 15. Tennessee is scheduled to receive more than $4 billion over 25 years from the Master Settlement Agreement of 1998 between states and the four major tobacco companies. The settlement came after states sued to recoup the costs they already had incurred, and expected to incur in the future, to provide health care through Medicaid and Medicare for people suffering from tobacco-related injuries. The state Legislature originally tried to divide the money equally between health programs and support for the state's tobacco farmers, who have been affected by decreased demand for their crop. Finally, the Legislature took four years' worth of payments, $560 million and used it to balance the budget. Ms. Cooper and attorneys J.D. Lee and his son, David Lee, of Knoxville, all represent the plaintiffs, who both claim tobacco-related injuries, and who contend in their lawsuit that the state improperly used the tobacco settlement money and seek to recover medical expenses from the payments. Named in their lawsuit are the state of Tennessee and tobacco companies Philip Morris, R.J. Reynolds, Brown & Williamson, Lorillard and Liggett & Meyers Inc. In their arguments on behalf of smokers, David Lee and Ms. Cooper cited the "made whole doctrine" of Tennessee law, which, they say, requires injured parties to be compensated before the state receives compensation. "This issue started out as an agreement to compensate the people before this court today; the smokers," Ms. Cooper said. Meanwhile, Russell Perkins, the state's attorney, maintained that the state is immune in the case, under the Constitution's 11th Amendment dealing with judicial powers. Mr. Perkins also said that Congress made it clear that tobacco payments under the Master Settlement Agreement are the property of the states and can be spent by the states as they see fit. State Finance Commissioner Warren Neal said, in an affidavit, that diverting the $102 million into escrow could lower the state's bond rating and affect its ability to comply with spending mandated by the courts, the federal government or existing contracts. John Lucas, attorney for Philip Morris, said the plaintiffs presented no evidence that they suffered injury from tobacco products and, therefore, have no grounds for compensation for medical expenses. Mr. Lucas added that the Master Settlement Agreement does not prevent anyone from filing a personal injury lawsuit against the tobacco companies. Ms. Cooper, however, told Judge Trauger that there is no guarantee that tobacco companies will be financially able to pay damages to smokers once they are finished paying the states under the Master Settlement Agreement. Ms. Cooper says that the relief she seeks, placing the $102 million in escrow and having a trial court decide how it should be divided among her clients and the members of the class, will cause no harm to the public interest. If the lawsuit is unsuccessful, the escrow money would be returned to the state with interest. ********* ARTHUR ANDERSEN: Former Fed Chair Calls For A Halt To Securities Suits ---------------------------------------------------------------------- Former Federal Reserve Chairman Paul Volcker asked the government to drop charges against controversial accounting firm Arthur Andersen LLP, to allow for its survival as a Company, Reuters Securities reports. Mr. Volcker, who was brought in last month to overhaul the firm also asked for: (1) a cap on the firm's liability in class actions, (2) a prompt end to pending US Securities and Exchange Commission action against the firm, and (3) a commitment by senior Andersen partners to stay at the firm and help rebuild it The accounting firm's finances and reputation have been badly battered by the controversy over its role in the collapse of Enron Corporation, which filed the nation's largest bankruptcy in December. The Justice Department indicted the firm of fraud and obstruction in its role in the collapse, by shedding documents relating to its audits of Enron. "To get action, we are willing to take [Andersen] over, but we can do it only if the other vitally important partners are willing to take action and do it quickly," Mr. Volcker told Reuters, saying he had asked for answers within days. "All of these parties are absolutely essential.The firm is in, I think it is fair to say, a certain amount of disarray." The firm welcomed the recommendations, saying in a statement, "We hope that the Department of Justice will carefully consider Mr. Volcker's proposal and come to a conclusion based on the best interests of our capital markets." BRISTOL-MYERS SQUIBB: Bernard Gross Lodges Securities Suit in S.D. NY --------------------------------------------------------------------- Bernard M. Gross PC initiated a securities class action in the United States District Court for the Southern District of New York, on behalf of all persons and entities who purchased or otherwise acquired the common stock of Bristol-Myers Squibb Co. between September 25, 2001 and March 19, 2002, inclusive. The suit names as defendants the Company and Chief Executive Officer Peter R. Dolan. The suit charges the defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Bristol issued materially false and misleading statements regarding its OCTAVE* study of VANLEV (omapatrilat), a novel cardiovascular compound for the treatment of hypertension. In April 2000, the Company voluntarily withdrew its New Drug Application for VANLEV (omapatrilat) from the US Food & Drug Administration (FDA). As a result of the withdraw of the VANLEV NDA, the Company announced that it would commence a 25,000 patient clinical trial of VANLEV for the treatment of hypertension, known as OCTAVE*, to determine the incidence and frequency of the deadly side effect known as angioedema. The market eagerly awaited the results of the OCTAVE* study to learn whether VANLEV for the treatment of hypertension would be a blockbuster drug for the Company. Finally, on September 25, 2001 defendants announced that the review and analysis of the data from the OCTAVE* study of VANLEV had been completed. On December 14, 2001, the Company submitted a New Drug Application with the FDA for VANLEV. On March 20, 2002, defendants revealed that they had known since September 25, 2001 but refused to disclose, the negative data from the OCTAVE* study of VANLEV for the treatment of hypertension. The data from the OCTAVE* study showed that, "there was a higher risk of a side effect known as angioedema observed in VANLEV-treated patients." After describing the details of the incidence of angioedema found in the data, defendants disclosed that, "the overall incidence of angioedema over 24 weeks was 2.17 with VANLEV and 0.68% with enalapril." Defendants also disclosed at the same time that the results of the study of VANLEV for treatment of heart failure had failed to show that it was superior to a cheap generic drug already on the market. As a result of these materially false and misleading statements, among others, plaintiff alleges that the price of the Company's common stock was artificially inflated during the class period. For more information, contact Deborah R. Gross, Susan Gross or Tina Moukoulis by Mail: 1515 Locust Street, 2nd Floor, Philadelphia, PA 19102 by Phone: 215-561-3600 by E-mail: susang@bernardmgross.com or tina@bernardmgross.com or visit the firm's Web site: http://www.bernardmgross.com BRISTOL-MYERS SQUIBB: Cauley Geller Launches Securities Suit in S.D. NY ----------------------------------------------------------------------- Cauley Geller Bowman & Coates LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of Bristol-Myers Squibb Company (NYSE: BMY) common stock during the period between September 19, 2001 and January 4, 2002, inclusive. The suit charges the Company and certain of its officers and directors with violating the federal securities laws by making itself, and allowing its drug development partner to make, without correction, materially false and misleading statements about the progress of its Erbitux cancer treatment drug's application for FDA approval even as the Company knew that the application and data were false. Specifically, the suit alleges that on December 28, 2001, a press release disclosed that the FDA had rejected the filing of a Biologics License Application for Erbitux. On January 4, 2002, The Cancer Letter reported that the FDA repeatedly informed defendants about problems with the Erbitux clinical trials during the class period. These shocking revelations caused the stock to plummet from a class period high of $56 to below $50, and now to $40. For more details, contact Jackie Addison, Sue Null or Shelly Nicholson by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 888-551-9944 by E-mail: info@classlawyer.com or visit the firm's Web site: http://www.classlawyer.com BRISTOL-MYERS SQUIBB: Weiss Yourman Commences Securities Suit in NY ------------------------------------------------------------------- Weiss and Yourman LLP initiated a securities class action against Bristol-Myers Squibb Company (NYSE:BMY) and certain of its officers and directors was commenced in the United States District Court for the Southern District of New York, on behalf of purchasers of Bristol-Myers securities, between September 19, 2001 and March 19, 2002. The suit charges the defendants with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants issued false and misleading statements, which artificially inflated the stock. For more details, contact David C. Katz, James E. Tullman or Mark D. Smilow by Mail: The French Building, 551 Fifth Avenue, Suite 1600, New York NY 10176 by Phone: 888-593-4771 or 212-682-3025 or by E-mail: info@wynyc.com DAIMLERCHRYSLER AG: Asks Judge To Dismiss Tracinda Shareholder Suit ------------------------------------------------------------------- DaimlerChrysler AG plans to ask for the dismissal of a securities class action days after US Federal Judge Joseph Farnan refused to dismiss the suit, which accuses the Company of making misleading statements to win support for its 1998 acquisition of Chrysler Corporation. The suit, filed by shareholder Kirk Kerkorkian, on behalf of his company Tracinda Corporation, was commenced after the Financial Times quoted Chief Executive Juergen Schrempp as saying he always intended to control Chrysler and operate it as a division. Tracinda claims it wouldn't have voted in favor of the 1999 merger had it known then- Daimler-Benz AG intended to subjugate Chrysler and fire its management, according to a Wall Street Journal report. An unidentified person with ties to the Company told The Wall Street Journal that it would take between six months and a year before the court reaches a decision on the second request to throw out the suit. JDS UNIPHASE: Milberg Weiss Commences Securities Fraud Suit in N.D. CA ---------------------------------------------------------------------- Milberg Weiss Bershad Hynes and Lerach LLP initiated a securities class action in the United States District Court for the Northern District of California on behalf of purchasers of JDS Uniphase Corp. (NASDAQ:JDSU) publicly traded securities during the period between July 27, 1999 and July 26, 2001. The suit charges the Company, certain of its officers and directors and its controlling shareholder with violations of the Securities Exchange Act of 1934. The suit alleges that during the class period, defendants were motivated to inflate the value of Company stock so that the Company could make acquisitions using stock and so the individual defendants, who are the top officers and directors of the Company, could sell their shares. During the class period, defendants represented that demand was accelerating and the Company's only problem was its ability to manufacture enough product to meet demand. The defendants represented that they had outstanding visibility, including demand for the Company's products through the end of fiscal 2001 ("F01," ended on 6/30/01), and that the Company had 80 engineers whose job it was to monitor customers and their inventory levels and as a result, the Company would learn about any slowdown in demand early. The Company also misrepresented the success of its largest acquisitions, including Optical Coating Labs, Cronos Integrated Microsystems, E-Tek Dynamics and SDL Inc. As a result of these positive statements, Company stock traded as high as $146.32. The individual defendants (all of whom were top officers and directors of the Company) and its controlling shareholder took advantage of the inflation, selling or disposing of 25.2 million shares of their stock for proceeds of $2.1 billion. Then, in July 2001, the Company announced the restatement of its 3rd Quarter F01 results, the write-off of $44 billion in goodwill associated with its acquisitions, inventory write- downs and that F01 EPS would be only $0.16 and that it would incur a loss of $0.15 in F02. On this news, Company shares dropped to as low as $7.90, or more than 94% lower than the class period high of $146.32. For more information, contact William Lerach by Phone: 800-449-4900 by E-mail: wsl@milberg.com or visit the firm's Web site: http://www.milberg.com JP MORGAN: Wolf Haldenstein Commences Securities Suit in S.D. New York ---------------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of JP Morgan Chase & Co., Inc. (NYSE: JPM) securities between March 22, 2001 and February 1, 2002, inclusive. The suit alleges that defendants violated the federal securities laws by issuing false and misleading statements throughout the class period that had the effect of artificially inflating the market price of the Company's securities. The Company's business includes the well-established procedure of making commodities loan transactions, derivative loan transactions, and other transactions that were created to provide "off the books" financing for its borrowers. These creative business arrangements were essentially loan transactions masked as other kinds of financial agreements. The Company was subject to large credit risks, substantial risks of refusal to repay and even greater risks of liability to the debtor and third parties resulting from those transactions. The suit alleges that false and misleading statements and disclosures were released to the investing public in SEC filings, including the Company's 2000 Annual Report, which was filed on March 22, 2001 (the first day of the class period) and press releases. In one instance, on November 21, 2001, the Company wantonly released a public statement which failed to completely describe its risk and loss exposure as a result of its business practices related to transactions and dealings with the Enron Corporation, by now infamous for its financial collapse. At the time, the Company disclosed its total exposure regarding Enron at nearly $900 million. Further into the class period, the Company affirmed that, in fact, its aggregate Enron-related exposure was in fact approximately $2.6 billion due to the risks from the business practices alleged above. This $2.6 billion figure was nearly three times the previous figure reported by the Company. Moreover, pursuant to the Enron debacle, federal authorities are now judging and questioning the true measure of the Company's undisclosed risks, in order to precisely assess whether the substantial augmentation in its primary understated exposure in Enron will be repeated in its exposure with other companies to which the Company has made loans masked as commodity or derivative transactions. For more details, contact Fred Taylor Isquith, Gustavo Bruckner, Michael Miske, George Peters or Derek Behnke 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 Web site: http://www.whafh.com. E-mail should refer to JP Morgan. MEASUREMENT SPECIALTIES: Cauley Geller Lodges Securities Suit in NJ ------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP initiated a securities class action in the United States District Court for the District of New Jersey on behalf of purchasers of Measurement Specialties, Inc. (Amex: MSS) common stock during the period August 1, 2001 and February 14, 2002, inclusive. The suit charges the Company and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that the registration statement and prospectus issued in connection with the offering misrepresented and omitted material facts concerning the Company's financial results. Furthermore, during the class period, and in violation of generally accepted accounting principles, defendants caused the Company to falsely report favorable financial results by, among other things, improperly recognizing revenues and overstating inventories. As a result, Company stock traded at artificially inflated levels during the class period. For more information, contact Jackie Addison, Sue Null or Shelly Nicholson by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 888-551-9944 by E-mail: info@classlawyer.com or visit the firm's Web site: http://www.classlawyer.com MEASUREMENT SPECIALTIES: Kaplan Fox Commences Securities Suit in NJ ------------------------------------------------------------------ Kaplan Fox and Kilsheimer LLP initiated a securities class action against Measurement Specialties, Inc. (AMEX:MSS) and certain of its officers and directors in the United States District Court for the District of New Jersey, on behalf of all persons or entities who purchased the Company's common stock between August 1, 2001 and February 14, 2002, including all persons and entities who purchased or otherwise acquired its common stock pursuant, or traceable to, a public offering, which became effective on or about August 1, 2001. The suit charges the Company and certain of its officers and directors with violations of the federal securities laws and alleges, among other things, that during the class period defendants issued a series of false and misleading statements regarding the Company's financial condition. In addition, the registration statement and prospectus issued in connection with the offering misrepresented and omitted material facts concerning the Company's financial results. Furthermore, during the class period, and in violation of generally accepted accounting principles, defendants caused the Company to falsely report favorable financial results by, among other things, improperly recognizing revenues and improperly overstating inventories. As a result, Company stock traded at artificially inflated levels during the class period. For more information, contact Frederic S. Fox, Jonathan K. Levine or Hae Sung Nam by Mail: 805 Third Avenue, 22nd Floor, New York, NY 10022 by Phone: 800-290-1952 or 212-687-1980 by Fax: 212-687-7714 or by E- mail: mail@kaplanfox.com MEASUREMENT SPECIALTIES: Shalov Stone Lodges Securities Suit in NJ ------------------------------------------------------------------ Shalov Stone & Bonner LLP initiated a securities class action on behalf of all persons who purchased the securities of Measurement Specialties, Inc. (AMEX:MSS) in the period from July 31, 2001 to February 14, 2002 in the United States District Court in New Jersey. The complaint names as defendants the Company, and: (1) Joseph Mallon, (2) Damon Germanton and (3) Kirk Dischino The suit alleges that the defendants made material misrepresentations and omissions of material facts concerning the Company's accounting, inventories, assets and business performance during the relevant time. According to the suit, throughout the relevant time period, defendants overstated the Company's financial condition and stated that the Company was enjoying strong growth and performing well. At the same time, however, the suit alleges that the defendants knew or recklessly disregarded that the Company was overstating inventories and assets, among other things. On February 15, 2002, the Company disclosed that it expected to restate previously reported financial statements because of problems associated with its accounting. In addition, the Company disclosed that it had fired its then Chief Financial Officer, Mr. Dischino. The Company's stock was halted from trading that day, and has remained halted for over a month, leaving investors with an illiquid and possibly worthless investment. Investors have been left with substantial damages as a result of the financial misstatements and apparent accounting scandal at the Company. The company has delayed the filing of its Report on Form 10-Q for the most recent fiscal quarter with the SEC. For more details, contact Ralph M. Stone by Mail: 485 Seventh Avenue, Suite 1000, New York, New York 10018 by E-mail: rstone@lawssb.com or visit the firm's Web site: http://www.lawssb.com MEASUREMENT SPECIALTIES: Schiffrin Barroway Files Securities Suit in NJ ----------------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the District of New Jersey on behalf of all purchasers of the common stock of Measurement Specialties, Inc. (Amex: MSS) from August 1, 2001 through February 14, 2002, inclusive, including all persons and entities who purchased or otherwise acquired the Company's common stock pursuant, or traceable to, a public offering which became effective on or about August 1, 2001. The suit asserts that the Company and certain of its officers and directors issued false and misleading statements concerning its business and financial condition. Specifically, the suit alleges that the registration statement and prospectus issued in connection with the offering misrepresented and omitted material facts concerning the Company's financial results. Furthermore, during the class period, and in violation of generally accepted accounting principles, defendants caused the Company to falsely report favorable financial results by, among other things, improperly recognizing revenues and overstating inventories. As a result, Company stock traded at artificially inflated levels during the class period. 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: 888-299-7706 (toll free) or 610-667-7706 by E-mail: info@sbclasslaw.com METAWAVE COMMUNICATIONS: Wolf Haldenstein Files Securities Suit in WA --------------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class action in the United States District Court for the Western District of Washington. The suit was filed on behalf of purchasers of Metawave Communications Corporation (NASDAQ: MTWV) securities between April 25, 2001 and March 14, 2002, inclusive, against the Company and certain of its officers and directors. The suit alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the class period that had the effect of artificially inflating the market price of the Company's securities. Specifically, the suit alleges that during the class period, defendants caused the Company shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. As a result of this inflation, the Company was able to complete private placement offerings, raising net proceeds of $30 million. On March 14, 2002, however, the Company revealed that its FY 2001 results were false and that it would restate those results. The Company's common stock, which had traded at over $6 per share during the class period, sunk below $1 per share on this news. For more information, contact Fred T. Isquith, Michael Miske, George Peters or Derek Behnke by Mail: 270 Madison Avenue, New York, New York 10016 by Phone: 800-575-0735 or by E-mail: classmember@whafh.com. E- mail should refer to METAWAVE. NEWPOWER HOLDINGS: Cauley Geller Commences Securities Suit in S.D. NY --------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP initiated a securities class action on behalf of all individuals and institutional investors that purchased the common stock of NewPower Holdings, Inc. (NYSE:NPW) between October 5, 2000 and December 5, 2001, inclusive, in the United States District Court for the Southern District of New York. The suit charges the Company and its officers and directors with violations of the Securities Exchange Act of 1934. In addition, the Company, its officers and directors, as well as underwriters of the Company's October 5, 2000 initial public offering, are also charged with violations of the Securities Act of 1933. The complaint alleges that the Company, a nationwide provider of electrical power and natural gas formed by Enron in 1999, engaged in a pattern of misleadingly described policies and transactions throughout the class period that served to mask the true nature of its business, and its financial condition. Specifically, the suit alleges that the defendants made numerous false and misleading statements concerning the Company's ability to succeed in a volatile energy market through sophisticated risk management strategies conceived and largely managed by its affiliate, Enron Energy Services, Inc. (EES), an Enron subsidiary. The suit asserts that neither EES nor the Company had identified any hedging strategies that could enable the Company to operate profitably under market conditions prevailing at the time of the IPO or, indeed, at any time thereafter. Moreover, as the suit details, despite representations in the IPO prospectus designed to portray Enron and its affiliates as long-term investors in the Company and believers in its prospects for success, Enron, through its CFO, Andrew Fastow, had set up a partnership known as "Raptor III," whose purpose was to hedge Enron's position against such an anticipated decline in Company stock. Although the prospectus purported to describe fully the relationship between Enron, its affiliates, and the Company, and all of their related party transactions, it failed to fully disclose the extremely troubling and material Raptor transactions. As a result of these various misrepresentations and omissions, the IPO garnered net proceeds to the Company of $543 million. In addition, certain defendants made numerous statements concerning the Company's financial performance throughout the class period that falsely attributed disappointing results to factors beyond the Company's control. As the complaint charges, they schemed to omit mention of the true reasons the Company was drastically cutting costs- i.e., that it did not have its claimed hedging system against high prices in place (either independently or with the aid of Enron), and that collateral obligations carried a material risk of loss, thereby sapping its ability to tap enough resources to successfully carry out its business plan. Thereafter, in connection with the collapse of Enron amid scandal in the fall of 2001, the Company and other defendants belatedly began to disclose that they had no substantial hedges in place, and that, contrary to their repeated representations, a substantial portion (and perhaps all) of the enormous collateral they had posted was at risk of loss. The suit alleges that defendants have now admitted in filings made by them with Securities and Exchange Commission that the registration statements were false and misleading in that they failed to disclose that, contrary to defendants' prior representations, the collateral postings were not guaranteed to return to the Company completely or even substantially (as had been previously represented), but were at risk of being seized by the creditor, Enron. The Company misrepresented the true risk the Enron forward contracts presented because the revelation of the truth would have led to investor suspicions about the very viability of its business plan, its ability to hedge against higher prices, the adequacy of its liquid resources, and the fairness of its dealings with Enron. For more details, contact Jackie Addison, Sue Null or Shelly Nicholson by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 888-551-9944 by E-mail: info@classlawyer.com or visit the firm's Web site: http://www.classlawyer.com NVIDIA CORPORATION: Kaplan Fox Commences Securities Suit in N.D. CA ------------------------------------------------------------------- Kaplan Fox and Kilsheimer LLP initiated a securities class action against NVIDIA Corporation (NASDAQ: NVDA) and certain of its officers and directors in the United States District Court for the Northern District of California, on behalf of all persons or entities who purchased or otherwise acquired the Company's common stock between February 15, 2000 and February 14, 2002, inclusive. The suit accuses the Company and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The suit alleges, among other things, that during the class period defendants issued a series of false and misleading statements concerning the Company's financial condition. In order to overstate revenues in its financial statements, the Company violated generally accepted accounting principles and SEC rules by engaging in an improper scheme. As a result of defendants' misleading statements and accounting improprieties during the class period, the price of the Company's common stock traded at artificially inflated prices. For more information, contact Frederick S. Fox by Mail: 805 Third Avenue, 22nd Floor, New York, NY 10022 by Phone: 800-290-1952 or visit the firm's Web site: http://www.kaplanfox.com VIROPHARMA INC.: Wolf Haldenstein Commences Securities Suit in E.D. PA ---------------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class action in the United States District Court for the Eastern District of Pennsylvania, on behalf of purchasers of the common stock of ViroPharma Inc. (NASDAQ: VPHM) between July 13, 1999 and March 19, 2002, inclusive, against the Company and certain of its directors. The suit alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the class period that had the effect of artificially inflating the market price of the Company's securities. Specifically, the suit alleges that throughout the class period, the defendants made highly positive statements regarding the Company's drug Picovir. The Company represented that its growth was contingent on US Food and Drug Administration (FDA) approval of Picovir (pleconaril) drug as a cure for the common cold. The Company informed the investing public of every positive part of the Picovir studies. The Company sent numerous press releases praising the effectiveness of Picovir. The Company minimized or concealed potential obstacles to FDA approval. On March 19, 2002 trading was halted as the Company revealed that an FDA advisory committee was deciding the fate of the Company's cold treatment, Picovir. The panel voted 15-0 against approval because of safety concerns. However, during the class period, the Company insisted that treatment was well tolerated and that adverse events were comparable to placebo in the trials. On March 20, 2002 after the resumption of trading, shares of the Company plummeted 60 percent. The 15-member FDA committee had questions about the safety of the drug in women taking oral contraceptives and in the elderly. In addition, the committee asked for broader studies on the drug's benefits with minorities, the elderly, patients with asthma and chronic bronchitis, children, and more about the drug's interaction with other medications. They also expressed concern that the drug may develop drug-resistant cold germs. The FDA pointed out that the drug had several significant side effects, with headache the most frequently cited. Seven patients out of 4,500 who took the drug reported rapid heart palpitations and four patients withdrew from the study for that reason. The side effect that most concerned the panel was abnormal bleeding by 3 percent of women taking birth control pills. Because Picovir needs to be taken within the first 24 hours of getting a cold and after eating, several panelists worried that doctors would dole out prescriptions before the cold season began, without discussing safety considerations. There were tremendous obstacles for the Company to overcome before it could receive regulatory approval for Picovir. These obstacles, as enumerated by the FDA as set forth above, were undisclosed during the class period, but were well known to defendants by virtue of their testing and trials of this drug on thousands of people for several years. For more details, contact Fred Taylor Isquith, Gustavo Bruckner, Michael Miske, George Peters or Derek Behnke 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 Web site: http://www.whafh.com. All e-mail correspondence should make reference to ViroPharma. WASTE MANAGEMENT: SEC Files Securities Suit For 1998 Earnings Revision ---------------------------------------------------------------------- The United States Securities and Exchange Commission (SEC) sued six Waste Management executives with securities fraud, calling the Company an example of "one of the most egregious accounting frauds we have ever seen," USA Today reports. The suit charged executives, including co-founder and former CEO Dean Buntrock, for overstating earnings by $1.7 billion from 1992 to 1997. The misstatements led the Company to restate earnings for the period in February 1998, causing investors to lose US$6 billion. Meanwhile, Mr. Buntrock and the other executives were busy selling stock and getting bonuses, gaining nearly US$29 million. Mr. Buntrock's attorney, John McCarthy, on Tuesday called the charges "outrageous," USA Today reports. Arthur Andersen, the Company's auditor, settled with the SEC for $7 million in 2001 for its role in the overstatement, which still stands as the largest fine ever paid to the SEC by an accounting firm. ********* 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 2002. 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. 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