/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/020503.mbx C L A S S A C T I O N R E P O R T E R Friday, May 3, 2002, Vol. 4, No. 87 Headlines CALIFORNIA: Survey Reveals Inadequacies In State Public School System CATHOLIC CHURCH: 26 Men Join Sexual Abuse Suit V. Boston Archdiocese CKE RESTAURANTS: Faces Suit For Violations of California Wage Laws CONNECTICUT: Budget Chief Says Other Costs Hamper Integration Efforts GAS COMPANIES: AZ State Court Approves Settlement in Gas Storage Suit INDIAN FUNDS: Suit May Never Be Settled As Solutions Prove Elusive NORTHWEST AIRLINES: Faces Suit Over Frequent Flyer Program in Michigan ORLEANS HOMEBUILDERS: Residents File Suit Over Carbon Monoxide Buildup PRESTIGE TOY: Recalls Duckie Ring Rattle/Teethers Due To Choking Hazard ROYALTY PAYMENTS: Plaintiffs Sue Lawyers over Royalties Suit Settlement SLAVE REPARATIONS: NJ Suit To Target Insurance Company, Railroad, Bank SLAVE REPARATIONS: CA Agency To Release List of Slave Policy Issuers Securities Fraud ANDRX CORPORATION: Stull Stull Commences Securities Suit in S.D. FL BANK OF AMERICA: Court Sets Fairness Hearing For Settlement in May 2002 CONCORD CAMERA: Bernstein Liebhard Lodges Securities Suit in S.D. FL DOV PHARMACEUTICAL: Abbey Gardy Initiates Securities Fraud Suit in NJ DOV PHARMACEUTICAL: Wechsler Harwood Lodges Securities Suit in S.D. NY DOV PHARMACEUTICAL: Cohen Milstein Commences Securities Suit in S.D. NY DURATEK INC.: MD Court Dismisses With Prejudice Securities Fraud Suit DYNEGY INC.: Intends To Mount Vigorous Defense V. Securities Suits DYNEGY INC.: Wechsler Harwood Commences Securities Suit in S.D. TX DYNEGY INC.: Scott + Scott Commences Securities Fraud Suit in S.D. TX DYNEGY INC.: Abbey Gardy Commences Securities Fraud Suit in S.D. TX GERBER SCIENTIFIC: Stull Stull Commences Securities Fraud Suit in CT GILAT SATELLITE: Cohen Milstein Commences Securities Suit in E.D. VA JDS UNIPHASE: Keller Rohrback Lodges Securities Fraud Suit in N.D. CA LIGHT MANAGEMENT: Stull Stull Commences Securities Suit in S.D. NY MCLEODUSA INC.: Reaches Deal In Suit Over Disputed Stock Reserves MERILL LYNCH: Wolf Haldenstein Commences Securities Suit in S.D. NY MERILL LYNCH: Abbey Gardy Commences Securities Fraud Suit in S.D. NY MERILL LYNCH: Cohen Milstein Lodges Securities Fraud Suit in S.D. NY NEOPHARM INC.: Brian Felgoise Commences Securities Suit in N.D. RI NTL INC.: Brian Felgoise Commences Securities Fraud Suit in S.D. NY PRI AUTOMATION: Asks MA Court To Dismiss Suit For Securities Violations SHOPKO STORES: Named as Defendant in ProVantage Shareholder Suit in WI SHOPKO STORES: Faces Suits For Securities Act Violations in E.D. WI TEXTRON INC.: Brian Felgoise Commences Securities Suit in Rhode Island UNIVERSAL ACCESS: Shore Deary Commences Securities Suit in E.D. TX ********* CALIFORNIA: Survey Reveals Inadequacies In State Public School System --------------------------------------------------------------------- A survey conducted by pollster Louis Harris revealed several shocking inadequacies in California's public schools, saying that a sizable number of students, especially low-income youths, are being asked to learn in abysmal conditions, the Contra Costa Times reports. The survey, which is being described as the first systematic survey of the state's classroom teachers, revealed that: (1) about 32 percent of classroom teachers (in a sample of 1,071 teachers), who teach approximately 1.9 million children, say they do not have enough books for students to do their homework; (2) more than 27 percent described school facilities as infested with cockroaches, rats or mice. The number of children affected by these conditions is about 1.7 million. State education officials contested the findings, saying the release might be part of a plan to manipulate public opinion as the state fights a class-action lawsuit over the state of its schools, the Contra Costa Times reports. The suit demands that the state provide students with the "bare essentials" needed to learn, such as trained teachers, adequate facilities and sufficient instructional materials. Kerry Mazzoni, California Gov. Gray Davis' education secretary, asserted that the survey was timed to wrest momentum from Gov. Davis, who last week signed a bill authorizing a record $25.4 billion in bonds for school construction. She said some survey conclusions are "exaggerated and misleading." Lawyers for the plaintiffs said the breadth of problems uncovered by the survey surpassed even their gloomiest predictions. "This survey is bigger than any one lawsuit," John Affeldt, managing attorney for Public Advocates Inc., part of a coalition of volunteer lawyers and civil rights groups that filed the lawsuit in San Francisco County Superior Court, told the Times. "This is one of the most significant pieces of data on California public schools in the last 25 years. It really should be a wake-up call to Californians that we need to act immediately to provide all our students with the basic educational necessities." CATHOLIC CHURCH: 26 Men Join Sexual Abuse Suit V. Boston Archdiocese -------------------------------------------------------------------- Twenty-six men have joined a lawsuit against the Archdiocese of Boston, claiming a Catholic priest sexually abused them, the Associated Press reports. The suit also names as defendants Cardinal Bernard F. Law, Monsignor John Jennings and New Hampshire Bishop John B. McCormack. Rev. Joseph Birmingham, who died in 1989, allegedly abused the plaintiffs. After the accusations surfaced, church officials allegedly just moved Rev. Birmingham to another parish. Rev. Birmingham also served at five other parishes in Massachusetts. Gary Bergeron, 39, of Lowell, told AP he and his brother were shocked to learn that church officials moved Birmingham to their parish of St. Michael after allegedly being told of previous abuse. "They just gave him a new batch of victims, and when he left St. Michael's, they gave him a new batch of victims," Bergeron said. "I personally want Cardinal Law here. I want him to stay here, I want him to clean up this mess." The suit is similar to two other lawsuits, which asserts that priests were merely transferred from parish to parish despite reports of sexual abuse. Court documents released in January showed the archdiocese reassigned John J. Geoghan to other parishes, even though he was accused of child abuse. Another case, against the Rev. Paul R. Shanley, states that church officials knew allegations against him, and of his support for sex between men and boys, when they appointed him as pastor of a suburban Boston parish. Spokesman for the Manchester diocese Pat McGee reiterated earlier statements that Bishop McCormack had no knowledge of Rev. Birmingham's alleged abuse. "(Bishop McCormack) did not see anything while he served with Father Birmingham that made him suspicious that any abuse was occurring." CKE RESTAURANTS: Faces Suit For Violations of California Wage Laws ------------------------------------------------------------------ CKE Restaurants, Inc. faces two similar class actions alleging violations of California overtime laws on behalf of the management personnel in the Company's Carl's Jr. restaurants. The first suit was commenced in October 2001 in the Superior Court of the State of California, Los Angeles County while the second suit is pending in the Superior Court of the State of California, Alameda County. The suits allege that the plaintiffs were improperly classified as exempt from California overtime laws, thereby depriving them of overtime pay. The complaints seek damages in an unspecified amount, injunctive relief, prejudgment interest, costs and attorneys' fees. The Company believes that its employee classifications are appropriate, that it complied with state and federal wage and hour laws. Therefore, the Company intends to vigorously defend these actions. CONNECTICUT: Budget Chief Says Other Costs Hamper Integration Efforts --------------------------------------------------------------------- Connecticut governor's budget chief Marc Ryan testified recently in a landmark school desegregation case, saying competing state spending programs, such as health care, child protection, even pharmaceutical products, hampered efforts to spend more money on the state's schools, including efforts to desegregate the school populations, The Associated Press reported. Mr. Ryan, who is also secretary of the Office of Policy and Management, was testifying for the state, in New Britain Superior Court, in the second trial stemming from a prior desegregation lawsuit. The Connecticut Civil Liberties Union and the National Association for Advancement of Coloured People (NAACP) are seeking a court order enforcing a 1996 state Supreme Court ruling that ordered the state to end racial and economic isolation of the Hartford schools. Mr. Ryan outlined rising operational costs, giving testimony that was similar to what state Education Commissioner Theodore Sergi said in court last week. Mr. Sergi had testified that spending on desegregation programs competes with the educational priorities of the state's 169 towns. Philip Tegeler, legal director of Connecticut Civil Liberties Union Foundation, said Mr. Ryan's testimony was irrelevant. Although Judge Julia L. Aurigemma rejected Mr. Tegeler's objection, she acknowledged that the argument over money expenditures will not likely find its way into her decision. The state Supreme Court did not mention costs when it ordered desegregation. Mr. Ryan also responded to Mr. Tegeler's query as to why budget surpluses were not spent to desegregate schools, explaining that budget policy bars the use of surpluses for operating expenses. The hearing is expected to end the end of this week. GAS COMPANIES: AZ State Court Approves Settlement in Gas Storage Suit --------------------------------------------------------------------- Sebastian County Circuit Court Judge James Marschewski approved a settlement decree in the class action brought against three gas companies over past and future gas storage at an underground reservoir in Franklin County, Arizona, the Southwest Times Record reports. 200 residents commenced a suit against SEECO Inc., Arkansas Western Gas Company and Southwestern Energy Co. relating to how much landowners should be paid for gas storage in the 2,000-acre-plus reservoir established as a storage site in the 1960s in Franklin County. The lawsuit, filed in 2000, followed on the heels of a $109 million payoff to class-action plaintiffs in a 1996 Sebastian County lawsuit against the same three firms. The payoff went to royalty owners who claimed the three firms colluded to defraud them. The $109 million payoff is said to be the largest private civil award in Arkansas history. The settlement ends not only the case but a condemnation lawsuit filed in Franklin County by SEECO Inc. in reaction to the class action. Class action plaintiffs who agreed to the settlement will be paid according to the amount of gas stored there, plus $2 million to amend for "past damages." Two experts testified in Monday's hearing. HC Cates, a Houston gas- storage expert, said the settlement would give the 200 plaintiffs a fair deal. "When you equate for location . this would be one of the highest-paid (gas storage reservoirs) in North America," he said. Ralph Scott Jr., professor of economics and business at Hendrix College, also testified, saying the settlement has built-in provisions to account for future inflation. However, some class action plaintiffs opted out of the complicated settlement deal. After the hearing, their attorney said the amount paid to attorneys in the case concerned him. The will be continuing their lawsuit against the three firms and remain as defendants in the Franklin County case, as well. INDIAN FUNDS: Suit May Never Be Settled As Solutions Prove Elusive ------------------------------------------------------------------ Just about as large an accounting scandal as that plaguing Arthur Andersen and the beleaguered Enron is one that has existed for decades and is the direct result of government incompetence, reports the Deseret News. What's more, it may never be settled. Even the courts cannot seem to find a way to assure American Indians that billions of dollars in land-use fees owed them will ever be distributed, or even located. The money is due them in payment for grazing privileges, timber cutting and the extraction of oil, gas and other minerals from their land. The mess stems from bureaucratic intransigence of historic proportions by the Bureau of Indian Affairs and the United States Department of the Interior, which oversees the bureau, an agency whose early years were marred by corruption. Arthur Andersen itself was paid $20 million to try to straighten out the system, but the firm was unable to provide solutions. Price Waterhouse joined the General Accounting Office and others in issuing reports during reforms in the 1980s, all to no avail. In his frustration over the lack of government response during the six years since 300,000 Indians filed a class action asking for $10 billion dollars in lost, uncollected or squandered royalties from the use of their lands, Federal Judge Royce Lamberth held both Clinton Interior and Treasury secretaries in contempt of court. Now, current Interior Secretary Gale Norton and more than three-dozen other Interior officials face similar citations from Judge Lamberth. Like nearly every other dealing the American Indians have had with the government, they have failed to achieve any satisfaction to date from the filing of their class action. Indians contend that not one single account of those represented in the lawsuit has been accurately balanced. Judge Lamberth has been struggling with misleading government lawyers, shredded documents and deleted e-mails. Last December, he became so upset over the lack of security on Web sites linked to the trust accounts that he ordered them shut down. In a classic bit of bureaucratic fumbling, the Interior shut down all its Web sites, including those for the national parks, causing a disruption in vacation plans for thousands of Americans. The amount of land involved is sizable, 57 million acres, 47 million of which is held in trust for the tribes. Leases for use of the land are signed with the bureau and royalties are supposed to be paid to the Office of Trust Fund Management, which is supposed to administer the accounts. Record-keeping in any orderly fashion has been practically non-existent over the years, and many of the documents have been damaged or destroyed. There has also been a major problem as original account holders (land owners) have died and their holdings have been spread among their heirs. Congress has tried to fix the problem on occasion without much more success. The latest plan offered by a group of Western senators, including Democratic leader Tom Daschle of South Dakota and Republican John McCain of Arizona, would create a new position at Interior to oversee trust management and facilitate the handling of funds by the tribes themselves. At the same time Secretary Norton wants to set up a new bureau in the department to deal exclusively with the trust- management problems. Those supporting the class action are not keen about new government agencies and positions coming into the picture. They want Judge Lamberth to appoint an independent receiver to straighten out the individual accounts. NORTHWEST AIRLINES: Faces Suit Over Frequent Flyer Program in Michigan ---------------------------------------------------------------------- Northwest Airlines faces a class action over its frequent-flier program, claiming the Company hinders customers from booking free tickets, in the United States District Court in Detroit. "Northwest routinely (and) unfairly uses `capacity control' as an excuse to limit the number of seats that can be obtained," claim the plaintiffs in their 19-page complaint, filed by Royal Oak, Michigan attorney Stephen Wasinger on behalf of a Detroit woman, S.A. Goldsmith. The suit also accuses the Company of making other illegal changes, including offering "RuleBuster Awards," which make it easier to book a free ticket if a customer is willing to use 45,000 frequent-flier miles, instead of 25,000 miles, for a domestic ticket. All airlines routinely limit the number of seats available for frequent-flier tickets. Earlier this year, the Company eliminated its blackout dates, but after May 31, will end the practice of offering ticket between September - May for fewer miles. Russell Hinckley, managing director of WorldPerks Marketing for Northwest Airlines, said if the suit is successful, it could force the company to end its frequent-flier program. "Removing capacity controls on the high demand routes, dates and times would displace paying customers, reducing income from such flights," Mr. Hinckley said in a court filing. "If Northwest could not manage the costs of the program, it would no longer be viable." ORLEANS HOMEBUILDERS: Residents File Suit Over Carbon Monoxide Buildup ---------------------------------------------------------------------- Lawyers for residents of Mount Laurel, in Burlington County, The Philadelphia Inquirer reports, recently filed a motion for class action certification, in the lawsuit filed in December, against Orleans Homebuilders, over "design defects" in their condominium's floor plan, which in turn may have led to a risky carbon-monoxide buildup in the utility room. The utility room houses three gas-burning appliances, and lawyers for the plaintiffs say poor dryer maintenance can cause the furnace to malfunction and thereby produce carbon monoxide. The certification, if granted, would allow plaintiffs' attorneys to include all residents of Orleans-built multifamily homes, with gas appliances, constructed in the last 10 years in Mount Laurel. The lead plaintiffs named in the initial filing of the lawsuit are Beverly Duchon and her husband. Additionally, the township has prepared to petition Superior Court in Burlington County to join as a separate plaintiff in the suit against Orleans, the developer of Laurel Place, the Lakes and neighboring communities. After the initial filing by plaintiffs' lawyers Philip Fuoco, Norman Shabel and Steve DeNittis in late December, the state instructed the township to investigate the allegations of carbon monoxide buildup, among other things. In February, the building inspector cited about 120 violations in Orleans multifamily homes, contending the builder "failed to provide sufficient combustion air for the fuel-burning appliances as set forth" in the state building code, which requires a certain amount of space and ventilation for rooms with gas-burning appliances. The citations were intended as a blanket complaint relating to about 700 units in the Lakes neighborhood. The Company has appealed the violations to the Burlington Construction Board of Appeals, which is scheduled to hear the matter May 21. The township contends that as many as 3,000 multifamily homes that have utility rooms containing more than one gas-burning appliance could be at risk. If the plaintiffs can prove the utility rooms are poorly designed, they want the Company to make amends, possibly by adding more ventilation. Company attorney Lawrence Dugan said, "We believe that most, if not all, the homes were constructed in accordance with the Uniform Construction Code and, indeed, certificates of occupancy were issued by Mount Laurel Township for all of these homes. We are continuing our investigation." The problem dates to the 1980s, when development was booming in Mount Laurel. Residents and township officials say the area was in such a hurry to promote growth that plans - including those for several Company developments now in question - were approved without proper oversight. PRESTIGE TOY: Recalls Duckie Ring Rattle/Teethers Due To Choking Hazard ----------------------------------------------------------------------- Prestige Toy Corporation is cooperating with the United States Consumer Product Safety Commission (CPSC) by voluntarily recalling about 4,600 Duckie Ring rattle/teethers. The rattle may break, causing small beads to fall out, which presents a potential choking hazard to young children. The Company has not received any reports of incidents. This recall is being conducted to prevent the possibility of injuries. The Duckie Ring has a clear plastic tube with multi-colored balls inside that make a rattling sound. The rattle is attached to a yellow duck with an orange beak by a blue and yellow striped teether. The brand name "PRESTIGET" is embossed on the teether. The combination rattle/teethers have model numbers 4576, 44576, and 84576, which can be found on the sewn-on label. Retailers nationwide, including the Fred Meyer Co., The Carters Outlet Stores, Proffits and E.A.T. Gifts, sold the rattles from March 2002 through April 2002 for about $7. For more details, contact the Company by Mail: 131 West 33rd Street, Room 606, New York, NY or by Phone: 888-268-8999 between 9 am and 5 pm ET Monday through Friday. ROYALTY PAYMENTS: Plaintiffs Sue Lawyers over Royalties Suit Settlement ----------------------------------------------------------------------- Two plaintiffs who sued Shell Oil and Mobil Oil over royalty payments said lawyers handling the case wrongfully took $202,587 from them to mount a legal challenge, then settled it without a challenge, the Denver Post reported. Bridwell Oil and Harry Ptasynski, a Casper resident and royalty owner, filed a suit the lawyers and managers of the CO2 Claims Coalition, a plaintiffs' organization formed to fight the original suit in the United States District Court in Denver. They say the lawyers colluded with the oil giants to reap windfalls for themselves, while getting far less for the plaintiffs in the settlement than they were owed. The coalition had filed a class action in 1996 on behalf of about 2,000 landowners and others with an interest in the McElmo Dome field near Cortez. The suit alleged the oil companies illegally deducted pipeline transportation fees from their royalty payments. The coalition agreed to settle the case for $72 million. Lawyers will receive about $18.5 million of that. Federal judge Zita Weinshienk approved the settlement, saying it was fair. Mr. Bridwell and Mr. Ptasynski allege that the lawyers failed to present arguments that could have resulted in millions more in damages. Denver lawyer John M. Cogswell, who spearheaded the legal battle, denied that the group engaged in any wrongdoing. He said the plaintiffs opted out of the settlement and filed separate cases in Texas. "They had second thoughts and filed their own suits, and they basically lost . now they want to get their money out of the attorneys." The suit says that royalty owners would split only about $5 million between them from the settlement. The bulk of the money would go to leaseholders, also called working-interest owners, who pay some share for exploring or extracting carbon dioxide. The plaintiffs say that the attorneys had a conflict of interest because one of them, James Leo Crowley, of Arizona, has an interest in some of the land. Robert Perry, the Dallas lawyer handling the case for the plaintiffs, refused to comment. Mr. Cogswell expressed confidence, however, that he and the other defendants will win the suit. SLAVE REPARATIONS: NJ Suit To Target Insurance Company, Railroad, Bank ---------------------------------------------------------------------- An insurance company, railroad and bank are to be targeted in the latest class action seeking compensation for the unpaid labor of black slaves, The Associated Press reported recently. The action is to be filed in United States District Court on behalf of a Somerset County, New Jersey man, Richard E. Barber, Jr., whose grandfather was a slave, and an unknown number of others with similar backgrounds, according to lawyers in the case. Mr. Barber will accuse New York Life Insurance Co., Brown Brothers Harriman & Co., and Norfolk Southern Corp. of profiting directly or indirectly from the work of slaves, the lawyers said. "It is finally time for them to account for these historical injustices and to pay back the monies unjustly acquired by their actions," said Mr. Barber. Mr. Barber was a regional administrator of the Small Business Administration under President Jimmy Carter. He said his father had been a share cropper, but his great-grandfather, grandfather and five great-aunts and great-uncles were slaves. His is believed to be the second such lawsuit, said the lawyers, who in March sued Aetna Insurance, the FleetBoston financial services group and railroad giant CSX in New York. Among the lawyers involved in both cases is Edward Fagan of Livingston, who also has been involved in class action settlements on behalf of Holocaust victims. A Brown Brothers partner, Donald Murphy, said that the New York-based commercial bank could not comment because it had not yet seen the lawsuit. Norfolk Southern had no immediate comment nor did New York Life, the Associated Press reports. SLAVE REPARATIONS: CA Agency To Release List of Slave Policy Issuers -------------------------------------------------------------------- The California Department of Insurance plans to release a list of eight insurance companies that issued policies to slave owners, as well as made available a database of about 600 insured slaves and about 400 slaveholders, the Associated Press reports. The records include policies taken out by slave owners who paid premiums and received money if a slave died, as well as documents referring to the practice of insuring shiploads of slaves traveling from Africa to the United States. Activists welcomed this development, saying the list could greatly help the case for reparations for descendants of slaves. "Slaves were not considered human beings," Marie Davis, president of the San Mateo, California branch of the National Association for the Advancement of Colored People told AP. "They were considered as property." Leslie Tick, the department's senior counsel, revealed that about 1,350 life, property and casualty insurance companies in California were required to report to the insurance department. 92% of the companies have responded to the directive. California is the first state to require insurance companies to submit data on slave policies they've issued, according to the National Association of Insurance Commissioners. According to an Associated Press report, the companies had to report whether they or their predecessors issued insurance policies to slaveholders before 1865, providing coverage for damage to or death of slaves. The insurance department has discovered that the practice also extended to non-Africans. Ms. Tick states that one company reported a group insurance policy on about 700 Chinese laborers. A suit has already been commenced against Aetna Insurance Company, FleetBoston Financial Corporation and railroad giant CSX on behalf of themselves and millions of other blacks, claiming the companies - or their corporate predecessors - unjustly profited from slavery. "Slavery is certainly a scar on our country's history," Nicole Mahrt, spokeswoman for the western regional office of the American Insurance Association told AP. "It's difficult to go back and apply today's morality retroactively to yesterday's contracts. That's something the courts are going to have to struggle with, in separating the emotional and legal issues." Securities Fraud ANDRX CORPORATION: Stull Stull Commences Securities Suit in S.D. FL ------------------------------------------------------------------- Stull, Stull & Brody initiated a securities class action in the United States District Court for the Southern District of Florida, on behalf of purchasers of the common stock of Andrx Corporation (NASDAQ:ADRX) between April 30, 2001 and February 21, 2002, inclusive against the Company and certain of its officers. 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 to the market during the class period, thereby artificially inflating the market price of the Company's common stock. Specifically, the suit alleges that, throughout the class period, the Company issued a series of statements concerning its generic version of the drug Tiazacr that the only thing holding up the drug from reaching the market was continuing patent litigation with Biovail Corporation in connection with Tiazacr. The defendants failed to disclose that, in fact, the Company had difficulty making a stable version of generic Tiazac, including that it had amended its original application to the FDA thirteen times. When the Company announced on February 21, 2002 that the FDA had raised "certain issues" concerning the generic Tiazac, the Company's stock price dropped from $42.61 per share on February 21, 2002 to $34.96 per share on February 22, 2002, on volume of 15,767,100, over seven times the prior day's volume. For more details, contact Tzivia Brody by Mail: 6 East 45th Street, New York, NY 10017 by Phone: 800-337-4983 by Fax: 212-490-2022 or by E- mail: SSBNY@aol.com BANK OF AMERICA: Court Sets Fairness Hearing For Settlement in May 2002 ----------------------------------------------------------------------- The United States District Court for the Eastern District of Missouri will conduct on May 30, 2002 a fairness hearing on the settlement proposed by the Bank of America Corporation to settle the securities class action pending against it on behalf of all persons who owned or purchased common or preferred stock of: (1) Nationsbank Corporation during the period starting August 4,1998 through September 30, 1998, and (2) BankAmerica Corporation during the period starting August 4,1998 through October 13,1998, inclusive Under the proposed settlement, defendants will pay US$490 million in cash, consisting of US$333.2 million to the NationsBank Classes and $156.8 million to the BankAmerica Classes, in accordance with the terms and conditions of a settlement agreement dated as of March 8, 2002, on file with the court. If the settlement should be approved, the above- captioned litigation will be dismissed on the merits and with prejudice as against all defendants. For more details, contact the Claim Administrator, BankAmerica Corp. Securities Litigation by Mail: c/o Haffler, Radeitch & Saitta LLP, PO Box 5413, Mount Laurel, NJ08054-5413 or visit the Web site: http://www.bankofamericasesettlement.com. CONCORD CAMERA: Bernstein Liebhard Lodges Securities Suit in S.D. FL -------------------------------------------------------------------- Bernstein Liebhard and Lifshitz LLP initiated a securities class action on behalf of all persons who purchased or acquired Concord Camera, Corp. (NASDAQ:LENS) securities between January 18, 2001 and June 22, 2001. The suit is pending in the United States District Court for the Southern District of Florida. 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 to the market during the class period, thereby artificially inflating the price of Company securities. The suit alleges that, throughout the class period, defendants issued a series of materially false and misleading statements, which failed to disclose that: (1) no less than $15,777,000, more than 45% of the Company's receivables, represented an unsecured and delinquent balance due from one single customer - KB Gear; (2) this delinquent $15,777,000 receivable balance was uncollectible; and (3) due to KB Gear's inability to pay for merchandise, the Company was stuck with a large quantity of customized higher-cost specialty components which had no alternative use and were non-salable. On June 22, 2001, the last day of the class period, the Company issued a press release revising its fourth quarter guidance and disclosing for the first time that: (i) excess inventory positions at many of the Company's customers and the resulting changes in their purchasing patterns have adversely affected inventory sales; (ii) the Company will record the following one-time charges against income in the quarter: $15.8 million accounts receivable provision, $4.3 million inventory provision, $1.4 million restructuring charge; and (iii) the accounts receivable provision and $2.0 million of the inventory provision relate to a financially troubled former customer of the Company with respect to which management has concluded that workout efforts are not likely to be successful. In response to these disclosures, the price of Company stock plummeted over 20% to close at $6.02. For more details, contact Ms. Linda Flood, Director of Shareholder Relations by Mail: 10 East 40th Street, New York, New York 10016 by Phoen: 800-217-1522 or 212-779-1414 by E-mail: LENS@bernlieb.com or visit the firm's Web site: http://www.bernlieb.com DOV PHARMACEUTICAL: Abbey Gardy Initiates Securities Fraud Suit in NJ --------------------------------------------------------------------- Abbey Gardy, LLP launched a securities class action against DOV Pharmaceutical, Inc. (Nasdaq: DOVP) 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 in or traceable to its initial public offering. The suit charges the Company, certain of its officers and directors, and the lead underwriters of its IPO, with violations of Sections 11 and 12 of the Securities Act of 1933. The violations, as the complaint alleges, stem from the issuance of allegedly misleading financial statements contained in the Company's IPO-related registration statement and prospectus that understated expenses arising from a joint venture in Bermuda (DOV Bermuda Ltd.). The suit alleges that the Company issued approximately five million shares in its IPO on April 25, 2002 at $13 per share, but failed to timely inform the class of revisions in its financial results. On April 25, 2002 when the Company shares began public trading investors learned that the Company's previously issued financial statements had been materially false and misleading. As a result Company shares lost approximately 33% of their value in one day, falling from their offering price of $13.00 to close trading at $8.70 per share. For more details, contact Nancy Kaboolian or Jennifer Haas by Phone: 800-889-3701 by E-mail: JHaas@abbeygardy.com or visit the firm's Web site: http://www.abbeygardy.com DOV PHARMACEUTICAL: Wechsler Harwood Lodges Securities Suit in S.D. NY ---------------------------------------------------------------------- Wechsler Harwood Halebian & Feffer LLP initiated a securities class action against DOV Pharmaceutical, Inc. (Nasdaq:DOVP) in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the Company's common stock in or traceable to its initial public offering. The suit charges the Company, certain of its officers and directors, and the lead underwriters of Company's IPO, with violation of Sections 11 of the Securities Act of 1933. The violations, as the complaint alleges, stem from the issuance of allegedly misleading financial statements contained in the Company's IPO-related registration statement arising from a joint venture in Bermuda. The suit alleges that the Company issued approximately five million shares in its IPO on April 25, 2002 at $13 per share, but failed to timely inform the class of revisions in its financial results. On April 25, 2002, when Company shares began public trading, investors learned that the Company's previously issued financial statements had been materially false and misleading. As a result Company shares lost approximately 33% of their value in one day, falling from their offering price of $13.00 to close trading at $8.70 per share. For more details, contact Craig Lowther by Mail: 488 Madison Avenue, 8th Floor, New York, New York 10022 by Phone: 877-935-7400 or by E- mail: clowther@whhf.com DOV PHARMACEUTICAL: Cohen Milstein Commences Securities Suit in S.D. NY ----------------------------------------------------------------------- Cohen, Milstein, Hausfeld & Toll, PLLC initiated a securities class action against DOV Pharmaceutical, Inc. (NASDAQ: DOVP) in the United States District Court for the Southern District of New York, on behalf all persons who purchased the Company's common stock in or traceable to the Company's April 25, 2002 initial public offering. The action charges the Company and certain of its officers and directors, and the lead underwriters of its IPO, CIBC World Markets and Lehman Brothers, with violations of Sections 11 and 12 of the Securities Act of 1933. The Company issued five million shares in its IPO on April 25, 2002 at $13 a share, but failed to timely inform the class of a revision of its 1999 financial results to properly include a Joint Venture in Bermuda with Elan Corporation. The class of purchasers of the shares in the IPO or in the aftermarket were not promptly made aware of the restatement, and as a result, suffered losses on the first day of trading or thereafter, when the shares of the Company fell from $13 to $8.70 per share. For more details, contact Steven J. Toll or Lisa Polk by Mail: 1100 New York Avenue, NW, Suite 500 - West Tower, Washington, DC 20005 by Phone: 888-240-0775 or 202-408-4600 by E-mail: stoll@cmht.com or lpolk@cmht.com or visit the firm's Web site: http://www.cmht.com DURATEK INC.: MD Court Dismisses With Prejudice Securities Fraud Suit --------------------------------------------------------------------- The United States District Court for the District of Maryland dismissed with prejudice the securities class action against Duratek, Inc., (Nasdaq:DRTK) and two of its executive officers, alleging violations of federal securities laws. The suit, filed in June 2001, alleges that certain statements and information contained in the Company's press releases and in the periodic reports filed by it with the Securities and Exchange Commission contained materially false and misleading information in violation of the federal securities laws. The ruling is subject to appeal. The Company's Executive Vice President and CFO Robert F. Shawver said in a statement, "We are very pleased with the District Court's decision, which supports our view that the lawsuit was without merit." For more information, contact Diane R. Brown or Robert F. Shawver by Phone: 410-312-5100 or visit the firm's Web site: http://www.duratekinc.com DYNEGY INC.: Intends To Mount Vigorous Defense V. Securities Suits ------------------------------------------------------------------ Dynegy, Inc. faces several securities class actions pending in the United States District Courts in Texas and New York on behalf of purchasers of the Company's publicly traded securities generally during the period between April 2001 and April 2002. The Company has not been served with complaints relating to these actions. However, based on press reports relating to these complaints, the Company understands that the suits principally assert that the Company and certain of its officers and directors violated the federal securities laws in connection with its accounting treatment and disclosure of the natural gas supply transaction that it entered into in April 2001 and the subject of its Current Report on Form 8-K filed on April 25, 2002. The Company anticipates that additional suits of this nature may be commenced and that all such suits will eventually be consolidated in a single court. The Company will fully analyze these allegations once the complaints are received. However, based on its current understanding, it believes these allegations are without merit and intends to vigorously defend against them. DYNEGY INC.: Wechsler Harwood Commences Securities Suit in S.D. TX ------------------------------------------------------------------ Wechsler Harwood Halebian & Feffer LLP initiated a securities class action in the United States District Court for the Southern District of Texas, on behalf of all persons and entities who purchased the publicly traded securities of Dynegy, Inc. (NYSE:DYN) during the period from April 17, 2001 through and including April 24, 2002. 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 to the market during the class period, thereby artificially inflating the price of Company securities. The suit alleges, inter alia, that the Company and its senior officers inflated the price of the Company's stock in order to pursue an accelerated securities sale program. The suit further alleges that defendants utilized a practice known as "Project Alpha" to create cash flow and bolster its perception in the financial community. Among other things, defendants' wrongful conduct: (1) artificially inflated the price of the Company's stock during the class period; (2) deceived the investing public, including plaintiff and other class members, into acquiring the Company's securities at artificially inflated prices; (3) allowed the individual defendants to extract millions of dollars in bonuses for creating the appearance of the Company's phenomenal cash flow from operations growth; and (4) allowed the Company to sell nearly half a billion dollars of its own securities to the unsuspecting public. For more details, contact David Leifer by Mail: 488 Madison Avenue, 8th Floor, New York, New York 10022 by Phone: 877-935-7400 by E-mail: dleifer@whhf.com or visit the firm's Web site: http://www.whhf.com DYNEGY INC.: Scott + Scott Commences Securities Fraud Suit in S.D. TX ---------------------------------------------------------------------- Scott + Scott LLC initiated a securities class action in the United States District Court for the Southern District of Texas on behalf of purchasers of Dynegy, Inc. (NYSE:DYN) publicly traded securities during the period between April 17, 2001 and April 24, 2002. The suit charges the Company and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The suit alleges that the Company and its top officers inflated the price of the Company's stock in order to pursue an accelerated securities sale program. Defendants knew that concealing the Company's true vehicle, Project Alpha, for creating cash flow from operations and the true impact it would have on the Company provided the only way that they could foster the perception in the business community that the Company was not an "Enron Corp.," i.e., the only way the Company could post the revenue and earnings per share growth claimed by defendants. Prior to the class period, the individual defendants realized that many of their complicated deals to generate reported net income did not generate cash flows. The defendants knew that investors would eventually discover this discrepancy and the Company's stock price would collapse. To prevent this, the Company classified what was essentially a loan from CitiGroup Inc. as an operating activity rather than as a financing activity as required by generally accepted accounting principles. The defendants' wrongful course of business: (1) artificially inflated the price of Company stock during the class period; (2) deceived the investing public, including plaintiff and other class members, into acquiring the Company's securities at artificially inflated prices; (3) allowed the individual defendants to extract millions of dollars in bonuses for creating the appearance of the Company's phenomenal cash flow from operations growth; and (4) allowed the Company to sell nearly half a billion dollars of its own securities to the unsuspecting public. For more information, contact Neil Rothstein by Phone: 800-404-7770 by E-mail: nrothstein@scott-scott.com or visit the firm's Web site: http://www.scott-scott.com DYNEGY INC.: Abbey Gardy Commences Securities Fraud Suit in S.D. TX ------------------------------------------------------------------- Abbey Gardy LLP initiated a securities class action in the United States District Court for Southern District of Texas, on behalf of all persons who purchased common stock of Dynegy, Inc. (NYSE: DYN) during the period between April 17, 2001 and April 24, 2002, inclusive. The suit alleges that the Company and certain of its top executives violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The suit charges that during the class period, defendants issued a series of material misrepresentations to the market, thereby artificially inflating the price of Company securities in order to pursue an accelerated securities sale program. Specifically, the suit alleges that defendants used a practice, which the Company called "Project Alpha," to create cash flow and bolster its perception in the financial community. The suit further alleges that defendants engaged in a scheme that: (1) artificially inflated the price of the Company's stock during the class period; (2) deceived the investing public into acquiring the Company's securities at artificially inflated prices; (3) allowed the individual defendants to extract millions of dollars in bonuses by creating the appearance that the Company's phenomenal cash flow was a result of operations growth; and (4) allowed the Company to sell nearly half a billion dollars of its own securities to the unsuspecting public. For more details, contact Jennifer Haas or Nancy Kaboolian by Mail: 212 East 39th Street, New York, New York 10016 by Phone: 800-889-3701 or by E-mail: Jhass@abbeygardy.com or NKaboolian@abbeygardy.com. GERBER SCIENTIFIC: Stull Stull Commences Securities Fraud Suit in CT -------------------------------------------------------------------- Stull, Stull & Brody initiated a securities class action in the United States District Court for the District of Connecticut, on behalf of purchasers of the securities of Gerber Scientific, Inc. (NYSE:GRB) between May 27, 1999 and April 12, 2002, inclusive against the Company and certain of its officers, including: (1) Michael J. Cheshire, (2) Marc T. Giles, (3) George M. Gentile, (4) Shawn M. Harrington, (5) Gary K. Bennett and (6) Anthony L. Mattacchione 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 to the market during the class period, thereby artificially inflating the market price of the Company's securities. Specifically, the suit alleges that, throughout the class period, defendants issued statements regarding the Company's quarterly and annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission. The complaint alleges that these statements were materially false and misleading statements because, among other things: (i) the Company was employing improper inventory and reserve accounting practices in violation of generally accepted accounting principles. As a result, the Company's operating results were materially misrepresented and overstated; (ii) the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) based on the foregoing, defendants' statements concerning the the Company's prospects were lacking in a reasonable basis at all times. On April 15, 2002, before the market opened, the Company announced that it expected to take a $12 million pre-tax charge in its fiscal fourth quarter, the period ending April 30, 2002. Additionally, the Company announced that, in response to an investigation by the SEC into its inventory and reserve accounting practices, it was conducting an internal review of its financial reporting for the period January 1, 1998 through April 30, 2002. The Company further stated that its investigation is ongoing and once it has been completed, the Company will likely restate its financial results for the appropriate periods. In response to the announcements, the price of the Company's common stock declined to $6.99 per share, a decline of more than 71% from a class period high of $24.50 per share, reached on July 6, 1999. For more details, contact Tzivia Brody by Mail: 6 East 45th Street, New York, NY 10017 by Phone: 800-337-4983 by Fax: 212-490-2022 or by E- mail: SSBNY@aol.com GILAT SATELLITE: Cohen Milstein Commences Securities Suit in E.D. VA -------------------------------------------------------------------- Cohen, Milstein, Hausfeld & Toll, PLLC initiated a securities class action against Gilat Satellite Networks, Inc. (Nasdaq:GILTF) in the United States District Court for the Eastern District of Virginia, on behalf of investors who purchased Company securities between August 14, 2000 and March 9, 2001. Other class action suits were thereafter filed in New York on behalf of purchasers of the Company between November 13, 2000 and October 2, 2001, so there is an overlap of the two cases. The cases will eventually be coordinated and/or consolidated in one federal court. The suit charges the Company and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that the defendants knew or recklessly disregarded, yet covered up the fact, that: (1) the demand for and acceptance of the Company's products and the products of its subsidiary, StarBand Communications, Inc., were greatly overstated; (2) the Company was having difficulty manufacturing and selling its chief product, Very Small Aperture Terminal (VSAT) profitably; (3) the Company's purported gross profit margins were false; (4) the Company was materially understating its costs and expenses; and (5) the Company, accordingly, would have to take massive charge- offs, numbering in the hundreds of millions of dollars in the future. Plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements caused the Company's stock price to become artificially inflated, inflicting enormous damages on investors. For more details, contact Steven J. Toll or Lisa Polk by Mail: 1100 New York Avenue, NW Suite 500 - West Tower, Washington, DC 20005 by Phone: 888-240-0775 or 202-408-4600 by E-mail: stoll@cmht.com or lpolk@cmht.com or visit the firm's Web site: http://www.cmht.com JDS UNIPHASE: Keller Rohrback Lodges Securities Fraud Suit in N.D. CA --------------------------------------------------------------------- Keller Rohrback LLP commenced 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) securities between July 27, 1999 and July 26, 2001. Shareholders allege that the Company and certain of its officers and directors issued a series of false and misleading statements concerning the Company's business and financial condition during the class period. Specifically, it is alleged 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 Company's top officers and directors, could sell 25.2 million shares of their own stock for proceeds of $2.1 billion. Then, on July 26, 2001, the Company announced the restatement of its third quarter results for fiscal 2001, the write-off of $44 billion in goodwill associated with its acquisitions, inventory write-downs, that earnings per share for fiscal 2001 would be only $0.16, and that it would incur a loss of $0.15 per share in fiscal 2002. On this news, Company shares dropped to as low as $7.90 - more than 94% below the class period high of $146.32. For more information, contact Jen Veitengruber, Lynn Sarko, Juli Farris and Elizabeth Leland by Phone: 800-770-6044 by E-mail: investor@kellerrohrback.com or visit the firm's Web site: http://www.SeattleClassAction.com. LIGHT MANAGEMENT: Stull Stull Commences Securities Suit in S.D. NY ------------------------------------------------------------------ Stull Stull & Brody initiated a securities class action in the United States District Court for the Southern District of New York, on behalf of purchasers of the common stock of Light Management Group, Inc. (OTCBB:LMGR) between June 9, 1999 through November 20, 2001, inclusive. The suit names as defendants the Company and certain of its current and former officers and directors, including: (1) Barrington L. Simon, (2) Dr. Donald J. Iwacha, (3) Eve Sigfrid, (4) Greg Amur, (5) James E. Slayton, CPA and (6) Feldman, Sherb & Co., PC 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 to the market during the class period, thereby artificially inflating the market price of the Company's common stock. Throughout the class period, defendants issued false and misleading statements regarding the Company's quarterly and annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission (SEC). Defendants misrepresented the Company's financial results, and failed to disclose weaknesses in its financial internal controls. During the class period, financial results for fiscal 1999 were restated twice. Financial results for the first, second, and third quarter of 2000 were each separately restated once. In addition, year- end results for fiscal 2000 were also restated. Independent Auditor Defendants, Mr. Slayton (auditor for fiscal 1999) and Feldman Sherb (auditor for fiscal 2000) falsely represented that year end results had been presented in accordance with generally accepted accounting principles (GAAP) based upon an audit that was purportedly conducted in compliance with generally accepted auditing standards. Defendants' misconduct included: (i) booking sales that later had to be reversed; (ii) failing to account for escalating costs and non-salary based compensation; (iii) misclassifying inventory as capital equipment; (iv) failing to account for expenses incurred by the Company which were paid by related entities in the period incurred; (v) failing to book expenses due to the settlement of debt with related parties; and (vi) substantially understating interest expenses. Moreover, the Company falsely represented that it had received outside funding critical to the growth of the business when, in truth, the Company knew that the announced financing would not be forthcoming. The Company also deceptively represented that backlog orders for its outdoor media projection systems had increased by $20 million. In the two years following this statement, the Company's reported revenues never approached this level. The defendants' wrongful course of conduct served to artificially inflate the price of the Company's common stock during the class period. While the price was being artificially inflated by the Company's misrepresentations, Omega Financial (a financial services firm 38%-owned by defendant Simon) sold substantial amounts of the Company's common stock. By the last day of the class period, the price of the Company's common stock, which had traded for as much as $17.50 per share, had declined approximately 99% to $0.450 per share. For more details, contact Tzivia Brody by Mail: 6 East 45th Street, New York NY 10017 by Phone: 800-337-4983 by Fax: 212-490-2022 or by E-mail: SSBNY@aol.com MCLEODUSA INC.: Reaches Deal In Suit Over Disputed Stock Reserves ----------------------------------------------------------------- McLeodUSA Inc. said recently that it had reached a deal with the representatives of class actions against the telephone company and agreed to distribute 36.8 million shares to holders of its old common stock, Reuters English News Service reported. The local and long-distance phone company, which emerged from bankruptcy earlier this month, said it would distribute an additional 18 million shares after the disputed claims are resolved. However, the Company will not be able to distribute any of the total 54.8 million shares until a court approves the agreement, which the Company expects will be done before the end of this week. The initial distribution equals about one share of new common stock for every 17.1 shares of old common stock held on April 5, the Company said. The Company filed for bankruptcy in January in the fourth-largest insolvency in the telecommunication sector. The Company's new common stock started trading under the ticker symbol "MCLDD" on April 18, after it emerged from the Chapter 11 reorganization. MERILL LYNCH: Wolf Haldenstein Commences Securities Suit in S.D. NY ------------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of Internet Capital Group, Inc. (NASDAQ: ICGE) common stock between August 30, 1999 and November 8, 2000, inclusive, against Merrill Lynch & Co. Inc. and its former star Internet analyst Henry Blodget for violations of Sections 10(b) and 20(a)of the Securities Exchange Act of 1934. The suit alleges that defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 promulgated thereunder, by the issuance of analyst reports regarding Internet Capital which recommended the purchase of Internet Capital common stock and which set price targets for Internet Capital common stock without any reasonable factual basis. Furthermore, when issuing their Internet Capital reports, defendants failed to disclose significant, material conflicts of interest, which they had, in light of their use of Mr. Blodget's reputation and his Internet Capital analyst reports, to obtain investment banking business for Merrill Lynch. Furthermore, in issuing their Internet Capital reports, in which they were recommending the purchase of Internet Capital stock, defendants failed to disclose material, non- public, adverse information which they possessed about Internet Capital as well as their true opinion about Internet Capital. For more details, contact Fred T. Isquith, Michael Miske, Robert Abrams, 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 Internet Capital. MERILL LYNCH: Abbey Gardy Commences Securities Fraud Suit in S.D. NY -------------------------------------------------------------------- Abbey Gardy LLP initiated a securities class action on behalf of all persons or entities who purchased shares of the Merrill Lynch Internet Strategies Fund (MANTX; MBNTX; MCNTX; MDNTX; MANTXEMP; MANTXFEE), during the period from March 14, 2000 through October 15, 2001, inclusive against the Funds and: (1) Merrill Lynch & Co., Inc., (2) Merrill Lynch Funds Distributor (MLFD), (3) Henry Blodget, (4) Paul G. Meeks, and (5) several directors of the Internet Strategies Fund. On October 15, 2001, the Internet Strategies Fund merged with The Merrill Lynch Global Technology Fund. The suit, filed in the United States District Court for the Southern District of New York, charges defendants with violations of Sections 11, 12 and 15 of the Securities Act of 1933. The suit alleges, among other things, that throughout the class period defendants knowingly or recklessly disseminated materially false and misleading statements regarding, among other things, the risk factors and investment strategies of the Internet Strategies Fund. Specifically, the suit alleges that the defendants engaged in a scheme that was intended to use Mr. Blodget's strong reputation and bullish ratings on Internet stocks to market the Internet Strategies Fund to unsuspecting investors. In fact, as a result of defendants' scheme, over one billion dollars was invested in the Internet Strategies Fund by investors. For more details, contact Nancy Kaboolian or Jennifer Haas by Phone: (800) 889-3701 by E-mail: jhaas@abbeygardy.com or visit the firm's Web site: http://www.abbeygardy.com MERILL LYNCH: Cohen Milstein Lodges Securities Fraud Suit in S.D. NY -------------------------------------------------------------------- Cohen, Milstein, Hausfeld & Toll, PLLC initiated a securities class action in in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Excite@Home (Nasdaq:ATHM) (Nasdaq:ATHMQ.OB) between the period of August 18, 1999 through September 28, 2001 (the "Class Period"), against Merrill Lynch & Co., Inc. and its Internet analyst Henry Blodget. The suit alleges that to maintain and enhance Merrill Lynch's investment banking relationships with Excite, defendants issued analyst reports with positive ratings on Excite which were materially misleading as they were inconsistent with their own contemporaneous, private adverse assessments of Excite. For example, defendants were repeatedly issuing a short-term accumulate, long-term buy rating on Excite despite their internal e- mails that Excite stock had a "flat" outlook, was without any "real catalysts" for improvement and was a "piece of crap." For more details, contact Steven J. Toll or Diana Steele by Mail: 1100 New York Avenue, NW West Tower, Suite 500 Washington, DC 20005 by Phone: 888-240-0775 or 202-408-4600 by E-mail: stoll@cmht.com or dsteele@cmht.com or visit the firm's Web site: http://www.cmht.com NEOPHARM INC.: Brian Felgoise Commences Securities Suit in N.D. RI ------------------------------------------------------------------ The Law Firm of Brian M. Felgoise, PC initiated a securities class action on behalf of persons who acquired NeoPharm, Inc. (Nasdaq:NEOL) securities between September 25, 2000 and April 19, 2002, inclusive, in the United States District Court for the Northern District of Rhode Island, against the Company and certain key officers and directors. The suit charges that defendants violated the federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Brian M. Felgoise by Mail: 230 South Broad Street, Suite 404, Philadelphia, Pennsylvania, 19102 by Phone: 215-735-6810 or by E-mail: BrianFLaw@yahoo.com NTL INC.: Brian Felgoise Commences Securities Fraud Suit in S.D. NY ------------------------------------------------------------------- The Law Offices of Brian M. Felgoise, PC initiated a securities class action on behalf of shareholders who acquired NTL, Inc. (OTCBB:NTLIO) securities between August 9, 2000 and November 29, 2001, inclusive, in the United States District Court for the Southern District of New York, against the Company and certain key officers and directors. The suit charges that defendants violated the federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Brian M. Felgoise by Mail: 230 South Broad Street, Suite 404, Philadelphia, Pennsylvania, 19102 by Phone: 215-735-6810 or by E-mail: BrianFLaw@yahoo.com PRI AUTOMATION: Asks MA Court To Dismiss Suit For Securities Violations ----------------------------------------------------------------------- PRI Automation, Inc. asked the United States District Court for the District of Massachusetts to dismiss a consolidated amended suit, charging the Company and three of its directors with violations of federal securities suits. The consolidated suit arose from five virtually identical class actions commenced in November 2000 on behalf of all purchasers of the Company's stock from January 27, 2000 through September 11, 2000. The suit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, and also Sections 11 and 15 of the Securities Act of 1933, by virtue of statements and omissions that the plaintiffs claim were materially false or misleading. In substance, the amended complaint alleges that, throughout the class period, senior management of the Company knew that: (1) the Company's Factory Automation Systems division was encountering manufacturing problems in preparing its new TurboStocker product for higher-volume production; (2) those manufacturing problems were financially material to the Company; and (3) that the Company did not adequately disclose those problems until the end of the class period The amended complaint also alleges that the registration statement for a securities offering by the Company in May 2000 failed adequately to disclose these manufacturing problems. The Company, together with the defendant directors filed a motion to dismiss the suit in December 2001. Argument on the motion has been rescheduled, and a new date has not yet been set. The Company strongly believes that the lawsuit lacks merit, and intends to defend against the claims vigorously. However, the Company could incur substantial costs defending the lawsuit, has no insurance coverage relating to these claims, and cannot give any assurance of a positive outcome in the suit. SHOPKO STORES: Named as Defendant in ProVantage Shareholder Suit in WI ---------------------------------------------------------------------- ShopKo Stores, Inc. was named as a defendant in an amended class action pending in the Circuit Court of the State of Wisconsin for Waukesha County relating of the sale of ProVantage Health Services, Inc., where the Company is a majority stockholder, to Merck & Co., Inc. The suit was originally commenced in May 2000 by James Jorgensen, an alleged stockholder of ProVantage. The original suit named ProVantage and its directors as defendants and alleged, among other things, that: (1) ProVantage's directors breached their respective fiduciary duties in connection with the sale of ProVantage to Merck & Co., Inc., and (2) the proposed price for ProVantage's common stock did not represent the true value of ProVantage In August 2000, an amended complaint was filed, adding the Company as a defendant. The amended suit alleges, among other things, that the Company aided and abetted the original defendants in breaching their fiduciary duties. The Company believes the suit to be without merit and intends to contest all allegations set forth. There can be no assurances, however, with regard to the outcome of the actions. SHOPKO STORES: Faces Suits For Securities Act Violations in E.D. WI ------------------------------------------------------------------- ShopKo Stores, Inc. labeled "without merit" the securities suits pending against the Company and its chief executive officer containing substantially identical claims in the United States District Court for the Eastern District of Wisconsin The suits allege that the defendants made various misrepresentations and omissions in public disclosures concerning the Company between March 9, 2000 and November 9, 2000. Specifically, it is alleged that the Company failed to disclose that the Company was experiencing significant shipping and inventory control problems at the Pamida division distribution facility in Lebanon, Indiana. Motions to consolidate the suits are pending. The Company intends to contest all allegations in the suits, but cannot give any assurance with regard to the outcome of the actions. TEXTRON INC.: Brian Felgoise Commences Securities Suit in Rhode Island ---------------------------------------------------------------------- The Law Offices of Brian M. Felgoise, PC initiated a securities class action on behalf of shareholders who acquired Textron, Inc. (NYSE:TXT) securities between October 19, 2000 and September 26, 2001, inclusive, in the United States District Court for the District of Rhode Island, against the Company and certain key officers and directors. The suit charges that defendants violated the federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Brian M. Felgoise by Mail: 230 South Broad Street, Suite 404, Philadelphia, Pennsylvania, 19102 by Phone: 215-735-6810 or by E-mail: BrianFLaw@yahoo.com UNIVERSAL ACCESS: Shore Deary Commences Securities Suit in E.D. TX ------------------------------------------------------------------ Shore Deary, LLP initiated a securities class action suit was filed in the Lufkin Division of the United States District Court for the Eastern District of Texas on behalf of all purchasers of the common stock of Universal Access, Inc. or Universal Access Global Holdings, Inc. (Nasdaq:UAXS) between May 10, 2001 and March 22, 2002, against the Company and certain of its officers and directors The suit charges the defendants with issuing a series of material misrepresentations to the market during the class period, failing to adequately disclose a change in the Company's business model and the risks involved in that change, and issuing financial statements that violated generally accepted accounting principles (GAAP), thereby artificially inflating the price of the Company's publicly traded securities. The alleged GAAP violations include recording revenue for contingent contracts and for "capacity swaps" with other telecommunications companies. As alleged in the suit, these capacity swaps were merely a trading of services, which had no real business purpose other than to artificially inflate the revenues of the participating companies. The suit alleges that these actions violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934. For more details, contact Kenneth E. Shore by Mail: 2515 McKinney Avenue, Suite 1565, Dallas, Texas 75201 by Phone: 800-497-6444 or by E- mail: kenneth.shore@shore-deary.com ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, New Jersey, and Beard Group, Inc., Washington, D.C. Enid Sterling, 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. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e-mail. 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