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/raid1/www/Hosts/bankrupt/CAR_Public/020812.mbx C L A S S A C T I O N R E P O R T E R Monday, August 12, 2002, Vol. 4, No. 158 Headlines ARIZONA: Faces Suit Filed By Motorists With SS Numbers on Licenses ASTRAZENECA PLC: Sued For Antitrust Violations Fraud In Prilosec Market BRIGGS & STRATTON: Recalls 160T Fun-Kart Engines For Fire, Burn Hazard CANADA: BC Court Allows Sex Abuse Suit By Former Sea Cadets To Proceed ENTERTAINMENT INDUSTRY: Networks Face Suit Over Age Discrimination ERPENBECK HOMES: Cash Buyers Of Homes Seek Class-Action Status For Suit FLORIDA: Inmates File Suit Over "Dungeon-like" Death Row Conditions FLORIDA: Miami-Dade County Agrees To Settle 2000 Voting Rights Suit FORD MOTOR: Probe For Crown Victoria Cars Delayed By Lack of Spare Part FORD MOTOR: Faces Potential Suit Over Crown Victoria Cars in Maryland INDIAN FUNDS: Inspector General Says Turf War Hinders Dept.'s Efforts MARCHFIRST INC.: IL Court Refuses To Grant Approval To Suit Settlement MARTHA STEWART: Faces Suits Over Alleged Involvement in Imclone Scandal MASSEY ENERGY: WV Claim May Follow Successful Securities Fraud Suit MERRILL LYNCH: Investors File Suit Seeking Recovery Of Lost Investment MOTOROLA INC.: Recalls 1M Cable Set-Top Boxes For Electric Shock Hazard NEW JERSEY: Filing Suit V. Companies For Spiraling Pension Fund Losses TERRORIST ATTACK: Compensation Fund Hands Out First $1.19M Payment TOSHIBA AMERICA: Consumers Sue Over Notebook Computers' Design Flaw UNITED STATES: Terrorism Policy Entangled With Asian Corporate Conduct New Securities Fraud Cases AON CORPORATION: Milberg Weiss Commences Securities Suit in N.D. IL BAXTER INTERNATIONAL: Milberg Weiss Launches Securities Suit in E.D. IL CAPITAL ONE: Finkelstein Thompson Commences Securities Suit in E.D. VA CHARTER COMMUNICATIONS: Bernstein Liebhard Files Securities Suit in CA CITIGROUP INC.: Cohen Milstein Commences Securities Suit in S.D. NY HPL TECHNOLOGIES: Abbey Gardy Commences Securities Suit in N.D. CA ICN PHARMACEUTICALS: Abbey Gardy Lodges Securities Suit in C.D. CA NICOR INC.: Much Shelist Commences Securities Fraud Suit in N.D. IL PERKINELMER INC.: Wolf Haldenstein Launches Securities Suit in MA Court SEEBEYOND TECHNOLOGY: Wechsler Harwood Commences Securities Suit in CA SUPERVALU INC.: Wechsler Harwood Commences Securities Suit in MN Court ********* ARIZONA: Faces Suit Filed By Motorists With SS Numbers on Licenses ------------------------------------------------------------------ Arizona's Department of Transportation, its state Attorney General and the director of its Motor Vehicle Division faces a class action filed on behalf of motorists who experienced identity theft because their Social Security numbers are on their drivers licenses has been served on state government, the Tucson Citizen reports. The claim also covers drivers who have paid to have their Social Security numbers removed from their licenses. Tucson attorney David Karnas told the Citizen that the state has 60 days to respond to the claim before a class action seeking $500 million is filed. "The primary goal is to have the state inform the people who have their Social Security numbers on their licenses that they can have them removed, because they are susceptible to identity theft," he said. The nine-digit SS can be used to gain access to the financial assets of others. The suit seeks compensation for losses stemming from identity theft and for anyone who has paid $4 for a duplicate license without a Social Security number, Mr. Karnas told the Citizen. The half-billion- dollar claim is sought to address nearly three decades of potential costs following the passage of the Privacy Act of 1974, he said. "Only MVD knows how many people they have charged that fee to because they wanted their Social Security number off their license," he said. "And it is unknown how many people have had their identity stolen and how much that cost them. We have been intentionally overinclusive." "We've received hundreds of phone calls at our office. I'm surprised at the response," he added. "I think people are surprised that their identity can be stolen by unscrupulous criminals. People don't know to be concerned about something unless they've been informed." ASTRAZENECA PLC: Sued For Antitrust Violations Fraud In Prilosec Market ----------------------------------------------------------------------- AstraZeneca PLC faces a class action filed by the Stop Patient Abuse Now! (SPAN) coalition, on behalf of 125 consumer and senior groups in 38 states, charging the Company with apparent fraud and antitrust violations relating to its ulcer medication Prilosecr. SPAN released a petition to the Federal Trade Commission and New York Attorney General Elliot Spitzer, which alleges that the Company may have intentionally misled the US Patent Office to prevent generic competition for its best-selling ulcer medication Prilosec(R). The drug is the most prescribed medicine in the US for seniors, and costs as much as $4 per daily dose. The Company earns $12 million each day from Prilosec sales. "Consumers are paying $6.25 million more per day than they should for Prilosec because AstraZeneca is blocking competition," stated SPAN founder and Gray Panthers Executive Director Tim Fuller. "It's time policy makers and the media take a closer look at this case," stated SPAN co-chair Patricia Ireland. The original patent on Prilosec expired October 5, 2001, which led the FDA to approve a generic version on November 16, 2001, but the Company claims generic manufacturers are infringing a second patent. SPAN cited court documents that indicate the Company stole the patent from a Korean company, then submitted identical documents to the US patent office and claimed the information was original. Under US law, the patent office would not have issued the patent if it covered "prior art" already in the market. New Yorkers spent nearly $300 million for Prilosec prescriptions last year, according to industry analyst IMS Health. The New York Medicaid program reports it spent over $73 million on 523,000 Prilosec prescriptions in 2000. Generics cost 70 percent less on average than the brands they replace. As a result, generic Prilosec will save New York consumers and taxpayers over $15 million each month, which led New York Governor George Pataki to petition the FDA on November 15, 2001 for immediate approval of generic versions. Consumers nationwide have overpaid nearly $2 billion dollars for the drug. Researchers at Boston University released a report that said one in four New Yorkers-over 5 million people-have no prescription drug coverage. With no one to negotiate a better deal on their behalf, they usually pay the highest prices for drugs. In addition, a SPAN survey found residents of Niagara Falls, NY, pay on- average $134 or 236% more for Prilosec than residents of Niagara Falls, Ontario, with whom they share a common border. For more information, visit the Website: http://www.spancoalition.org. BRIGGS & STRATTON: Recalls 160T Fun-Kart Engines For Fire, Burn Hazard ---------------------------------------------------------------------- Briggs & Stratton Corp. is cooperating with the US Consumer Product Safety Commission (CPSC) by voluntarily recalling about 160,000 engines used on fun-karts. Fuel from the engine can spill out if the fun-kart overturns, posing serious fire and burn hazards to consumers. The Company has received nine reports of incidents involving fun-karts that overturned and caught fire, including four consumers who suffered burns. The recalled engines are used only on fun-karts, which look and ride like go-karts, but are for personal use. The engine models included in the recall are: (1) 5HP Model Series 1352XX: All Model Series 1352XX on fun- karts (2) FunPower Model Series 1362XX: Includes only 1362XX engines built on or before June 22, 1995 (950622XX). The engines involved in this recall were manufactured in the United States. Briggs & Stratton sold the engines between May 1992 and June 1995 to fun-kart manufacturers such as Avenger Inc., Bob's Kart Shop, Brister Thunder Karts, Carter Brothers Manuf., Hamilton, Kartco Inc., Ken-Bar Manuf. Co., Manco Products Inc., T&D Metal Products Co., and U.S.A. Industries Inc. The engines were also sold separately to authorized distributors and dealers who may have resold them to consumers building homemade go-karts. Retail, specialty, and power equipment stores nationwide sold the fun- karts from 1992 through 1997 for between $600 and $2,000. For more details, contact the Company by Phone: 800-999-9444 between 8 am and 5 pm CT Monday through Friday, or visit the firm's Website: http://www.briggsandstratton.comto arrange for the free repair or to find a local dealer. CANADA: BC Court Allows Sex Abuse Suit By Former Sea Cadets To Proceed ---------------------------------------------------------------------- The British Columbia Supreme Court allowed a class action filed on behalf of Canada's former sea cadets to proceed against the federal government in a ruling released last Wednesday, the Vancouver Sun reports. The suit alleges that the federal government was negligent for failing to protect cadets from sexual misconduct by employees of HMCS Discovery between 1967 and 1977. Lead plaintiff William White was allegedly abused by two offices, including Ralph Bremmer who was later convicted of four counts of indecent assault involving four cadets. Justice Austin Cullen, of BC Supreme Court, noted is Mr. White's position that the government had a "duty of care" and "its failure to institute any such conditions or controls constituted a breach of the standard of care entailed by that duty." The government failed to properly vet and screen the people running the program and didn't monitor their conduct, the suit claims. Mr. White accuses the government of breach of fiduciary duty and negligence, the Vancouver Sun reports. Judge Cullen refused to allow Mr. White to proceed with the class action on the grounds of breach of fiduciary duty, saying Mr. White's claim "is not well founded." However, the judge allowed Mr. White's claim of negligence and rejected the government's argument that too much time had lapsed. ENTERTAINMENT INDUSTRY: Networks Face Suit Over Age Discrimination ------------------------------------------------------------------ Entertainment has alway been an industry demographically dominated by youth, but now television networks are letting the issue of age permeate its personnel areas as well, The Press-Enterprise (Riverside, CA) reports. NBC, CBS, Fox, Disney and other broadcasting companies are part of 23 separate class actions by TV writers claiming they have been "graylisted." That is, they allege the networks are systematically not hiring writers over 40, in violation of federal and state labor laws. Last week, the American Association of Retired Persons joined all 23 lawsuits as a co-plaintiff. Along with networks and production companies, about a dozen talent agencies are named as defendants, because, the suits allege, the agencies dump writers soon after they hit 40. The lead plaintiff in the original case, which was filed against NBC two years ago, was Tracy Keenan Wynn, 56, a two-time Emmy winner who, according to the lawsuit, had been unemployed for five years, because of what he calls "pervasive age discrimination." Mr. Wynn is the son of the character actor Keenan Wynn and grandson of vintage Hollywood comic Ed Wynn. Mr. Wynn and his fellow plaintiffs claim 31 percent of all writers are 50 and older, but they hold only five percent of the jobs. ERPENBECK HOMES: Cash Buyers Of Homes Seek Class-Action Status For Suit ----------------------------------------------------------------------- Fifty cash buyers of Erpenbeck homes will soon find out if they can band together to get liens off their properties, The Cincinnati Post reports. Boone County Circuit Judge Jay Bamberger will consider giving class action status at an August 13 hearing to a lawsuit filed on behalf of all of Erpenbeck's customers who paid cash for their homes. The lawsuit charges that the four banks that financed construction of the homes and condominiums are responsible for the unpaid loans. In each case, according to the lawsuit, the banks effectively designated the Erpenbeck Company to represent them at property closings because they did not send their own representatives to the closings. When the homebuyers turned over the payoff checks to Erpenbeck, they effectively delivered the money to the banks through their (the banks') representative Erpenbeck, according to the lawsuit. For cash buyers, only one check for the total price was written to the order of Erpenbeck Co. or an affiliate. Though money to pay off Erpenbeck loans was never forwarded to the home builder's lenders, the original check was correctly deposited. The cash buyers' plight differs from those who used a mortgage to help finance their homes. When a mortgage was involved, a payoff check was written to an Erpenbeck lender and misdirected into an Erpenbeck account at Peoples Bank of Northern Kentucky or at another bank. US Bank, formerly Firstar Bank, is the largest creditor owed money from the cash closings. The bank has not responded to the lawsuit's charges. FLORIDA: Inmates File Suit Over "Dungeon-like" Death Row Conditions ------------------------------------------------------------------- Florida's death row inmates, who are bringing a class action against the state, say temperatures routinely top 100 degrees Fahrenheit (38 degrees Celsius) in their cells, forcing them to stand in toilets, drape themselves in wet towels and sleep naked on concrete floors, Associated Press Newswires reports. In their suit, inmates say the heat and lack of air-conditioning inside Union Correctional Institution, amount to cruel and unusual punishment, and could lead to mental and physical illness and even death. US District Judge Ralph W. Nimmons, who has toured the prison, which is 45 miles southwest of Jacksonville, and last week interviewed some of the 300 inmates, is expected to rule later this year. By the time the lawsuit is decided, the inmates will have endured three summers of what their attorneys claim is a "dungeon-like atmosphere" since the case was filed in 2000. "We want them to bring the temperatures down," said Randall Berg, a Miami attorney representing the inmates. Mr. Berg says the heat is especially oppressive for older and obese inmates and those with physical and mental health problems. "Subjecting inmates who are confined in their cells nearly all the time, to temperatures almost always in excess of 90 degrees and frequently in excess of 100 degrees, and as high as 110 degrees, can only be called physically barbarous," the lawsuit alleges. "It's just a matter of time before someone dies," Mr. Berg said. The 1999 annual report of the Florida Corrections Commission said elderly inmates need more heat in the winter and air conditioning in the summer. Florida's death row population is aging. Of the 329 death-sentenced prisoners on January 22, 2002, 107 were 45 or older and six were over 65. 129 prisoners, more than one-third of the population, were obese, all according to court documents. The lawsuit also alleges three recent changes in policy have worsened the temperature problems. Inmates are no longer allowed to hang air deflectors on the vents in their cells, screening has been installed over the cell bars and air handlers have been turned off. Caryl Killinski, who represents the state, says, "I consider this a borderline frivolous lawsuit - it gets warm in any building not air conditioned." Referring to the subject of installing fans, Ms. Killinski says the electrical system could not support 300 individual fans. "The plaintiffs want air conditioning," she said. "If they want air conditioned prisons, they should go to the Legislature and not to federal court." FLORIDA: Miami-Dade County Agrees To Settle 2000 Voting Rights Suit ------------------------------------------------------------------- Miami-Dade County agreed to settle a voting rights lawsuit stemming from the 2000 presidential election problem that allegedly kept blacks from casting ballots in Florida, the Associated Press Newswires reports. The deal comes less than three weeks before the scheduled start of the trial in Miami federal court on the lawsuit, filed by the National Association for the Advancement of Colored People (NAACP) and other civil rights groups. The proposed settlement must now be approved by US District Judge Alan Gold, who is hearing the class action. The agreement would run through May 15, 2005. Judge Gold already has signed off on agreements reached with Broward and Leon counties earlier this year. Last week, settlements were reached with Duval and Volusia counties. The remaining defendants include the state and Orange and Hillsborough counties. Last week, Judge Gold rejected the state's request to dismiss the lawsuit, and granted class action status to the case. Under the agreement in Miami-Dade County, election officials will modify some voter registration, voter-roll maintenance and polling practices - all of which, plaintiffs alleged, disenfranchised minority voters on November 7, 2000. Under the agreement: (1) the county election department will try to identify persons incorrectly removed from voting rolls as a result of "felon" lists that were provided by the state Division of Election in 1999 and 2000; (2) felons convicted in Florida are not allowed to vote unless their rights have been restored. Any voter who was wrongly removed would get a new registration card and a written explanation that their voting privileges had been restored; (3) the department will make sure that all voters in line at poll closing time, 7 pm, will be allowed to vote; (4) each precinct will be given lists of active and inactive voters; (5) election staffers will mail a written explanation to persons whose provisional ballots are disqualified. Provisional ballots, one of the new election reforms, are given to voters whose eligibility to vote cannot be immediately verified; (6) the county must also publicize the time and date when the canvassing board will meet to review the provisional ballots; (7) the elections department must update the NAACP and other rights groups on how precincts will be staffed and equipped, particularly with computers and telephone lines; and (8) election staffers will mail a written explanation to persons whose provisional ballots are disqualified. The agreement, said county elections supervisor David Leahy, "will seek funding sufficient to permit him to provide computers for each polling place for the 2002 primary and general elections." A similar stipulation is noted for the 2004 elections. FORD MOTOR: Probe For Crown Victoria Cars Delayed By Lack of Spare Part ----------------------------------------------------------------------- Ford Motor Company's probe into preventing deadly fuel tank explosions in its Crown Victoria police cars has been deferred due to the lack of a key component called fuel cell bladders, the Company's top safety executive said, according to an Associated Press reports. The Company already faces several class actions in Florida, Arkansas, Texas and New Jersey, seeking the recall of all Crown Victoria police cruisers, stating that the design of the vehicle's fuel tanks creates a serious risk of fires and explosions in rear-end collisions, an earlier Class Action Reporter states. The defects caused the deaths of at least 11 police officers nationwide in the last two decades, all of whom survived rear-end impacts to the vehicle but were killed when the vehicle's gas tank exploded. In its tests, the Company reportedly needs five fuel cell bladders to see how effective the devices are at preventing gas tank fires and explosions following high speed rear-end collisions. These cell bladders are being considered by the Company to be used in Crown Victoria police cars to protect against spillage even when a fuel container equipped with them is damaged in an accident. However, Fuel Safe, the Bend, Ore., bladder supplier, has told Ford it does not have any available because of a commitment to supply the equipment to the Phoenix police department, Sue Cischke, Ford vice president of environmental and safety engineering, told reporters, AP reports. "We've asked to get a few bladders to test . and they feel they can only provide the orders for the city of Phoenix. We're working with the attorney general's office as well to get some parts for testing, because we want to make sure we're not creating a more dangerous situation," Ms. Cischke said. The Company has attempted to secure the fuel cell bladders from other companies, including those that deal with helicopters. Safety advocates say the Company should change the design of the fuel tank system rather than simply installing fuel cell bladders, AP report. FORD MOTOR: Faces Potential Suit Over Crown Victoria Cars in Maryland --------------------------------------------------------------------- Ford Motor Company faces another potential lawsuit filed relating to its Ford Crown Victoria police cars, Scuylkill.com reports. The suit is being filed by law firm Hamburg, Rubin, Mullin, Maxwell & Lupin, Lansdale on behalf of Montgomery Township, Maryland and: (1) the Montgomery Township Police Department, (2) East Norriton Township, and (3) East Norriton Township Police Department The suit seeks to force the Company to make voluntary changes in the placement of a gasoline tank in the said police car model. In a letter from the law firm, attorney, Edward Rubin alleges that "a number of police officers nationwide have been burned to death or received serious injuries as a result of high impact, rear-end collisions involving these Ford Crown Victoria vehicles, many of which are used as police cruisers," Schuylkill.com reports. In the letter, Mr. Rubin also noted other municipal departments often use the cars after they have completed their police service. The suit would ask the company to make modifications in the car's gasoline tank to make it safer and asks each municipality contacted to provide information on how many Crown Victorias it owns or leases and designate that they are used for police or other departments. INDIAN FUNDS: Inspector General Says Turf War Hinders Dept.'s Efforts --------------------------------------------------------------------- The Interior Department's effort to reform its Indian trust fund accounts has become a volatile internal turf war, the department's inspector general wrote in a report released this week, according to The Washington Post. Six years after a group of Native Americans sued the department for losing or mishandling billions of dollars held in trust funds, the department has committed so many errors and employees are so distrustful of one another that trust reform has been derailed, the report concludes. "The . litigation has so embroiled and angered those involved, that they cannot see or think clearly in order to make a correct decision," the report signed by Earl E. Devaney, the inspector general, states. "Every effort is thwarted by internal discord, distrust and a dysfunctional reluctance to assume ownership." The class action, led by Elouise Cobell, treasurer of the Blackfeet Indians in Montana, is seeking a full accounting of 300,000 trust funds managed by the government in the name of individual Indians for more than a century. The plaintiffs in the class action are claiming at least $10 billion in lost funds and damages. They also want a receivership to overhaul the current system. US District Judge Royce C. Lamberth already has found the government has breached its fiduciary responsibility to the Indians, and has held three Clinton-era officials in contempt for failing to provide accurate accounting information. Judge Lamberth is considering similar contempt charges against Interior Secretary Gale A. Norton and 40 deputies. Ms. Norton has rejected calls for a receivership, instead proposing a new agency within the department, the Bureau of Indian Trust Asset Management, to oversee reform. The new report by the inspector general was the result of a nine-month investigation into alleged misconduct of Interior officials in the case. The review found that no one set out to lie or mislead Judge Lamberth. However, the report says that so few people in the department work together that "a singular sinister or conspiratorial plan is impossible to construct." The review "concludes that there are areas in which we can improve management of the individual Indian trust funds, and we will continue our efforts to improve that," said John Wright, a spokesman for Interior, declining to address any specific finding. Keith M. Harper, an attorney for the Native American Rights Fund, one of the groups that filed the lawsuit, said the report clarified their call for Interior to be stripped of trust fund oversight. "The report says that because of warring between individual groups, there is no ability to operate the trust. Given that, the only possibility is to fix it through some outside entity - a receivership," Mr. Harper said. MARCHFIRST INC.: IL Court Refuses To Grant Approval To Suit Settlement ---------------------------------------------------------------------- MarchFirst Inc. shareholders who filed a securities fraud class action against officers of the bankrupt Internet consultant, were denied preliminary court approval of a proposed $22 million settlement, according to a report by the Chicago Daily Herald. The class action accused the Company's officials of misleading investors and inflating the price of company stock. The shareholders, who sued in 2000, were seeking preliminary approval of a proposed $22 million settlement reached with the company's insurer, Illinois National Insurance Co. The bankruptcy trustee for the Company, which sought Chapter 11 protection in April 2001 and later converted the filing to a liquidation, objected to the settlement. US District Judge John F. Grady wrote, "The shareholders' lawyers failed to demonstrate why the proposed settlement is fair, adequate and reasonable." MARTHA STEWART: Faces Suits Over Alleged Involvement in Imclone Scandal ----------------------------------------------------------------------- Shareholders filed a class action against Martha Stewart and Martha Stewart Living Omnimedia (MSO) in federal court recently, alleging they misled investors and federal authorities about Ms. Stewart's sale of ImClone Systems stock, according to a report by Reuters English News Service. The lawsuit, filed in Manhattan federal court, refers to newspaper reports, published on Tuesday, that a Merrill Lynch trading assistant, who is cooperating with authorities, has cast doubts on Ms. Stewart's explanation of her controversial sale of ImClone stock in December. The case seeks unspecified damages on behalf of shareholders who bought the Company's stock from June 7, 2002, through August 5, 2002. Ms. Stewart, a friend of ImClone former Chief Executive Sam Waksal, sold nearly 4,000 shares of ImClone the day before news was made public that the US Food and Drug Administration (FDA) had rejected an application for ImClone's experimental drug Erbitux. Ms. Stewart has repeatedly said her sale was lawful and based on public information. She has said that she had a previously arranged agreement with her Merrill Lynch broker, Peter Bacanovic, to sell the ImClone stock if the price slipped below $60 a share. Reports recently published in The New York Times and The Wall Street Journal said that Douglas Faneuil, a trading assistant, told Merrill Lynch executives and federal investigators that Ms. Stewart sold the ImClone shares after he advised her to do so at Mr. Bacanovic's instruction. The reports said that Mr. Bacanovic wanted her to take the action because Mr. Waksal and members of his family were selling their stock. Ms. Stewart is under federal investigation about the ImClone stock sale. Mr. Waksal was arrested in June on insider trading charges that he tried to sell his ImClone stock and tipped off family members before the FDA publicly announced it had rejected the application for Erbitux. Mr. Waksal has been negotiating with the prosecutors to reach a plea agreement and avoid a grand jury indictment. "Once Ms. Stewart chose to address these issues publicly, she had an obligation to public shareholders of MSO to speak the whole truth," the lawsuits allege. "Instead, Ms. Stewart . made materially false and misleading statements about the circumstances surrounding her sale of ImClone stock." Among other allegations in the shareholder suit is that Ms. Stewart issued press releases and made public comments in June in which she declared her innocence and misled investors. The lawsuit alleges that she failed to reveal that there was no pre-existing agreement with Mr. Bacanovic and that she had lied to federal prosecutors and the Securities and Exchange Commission. "Ms. Stewart knew that her statements to the SEC and the US Attorney for the Southern District of New York could subject her to criminal charges of obstruction of justice and making false statements to federal officials," the lawsuits allege. A spokesman for the Manhattan US Attorney's office would not comment on whether prosecutors are considering bringing such charges against Ms. Stewart. However, the story grows grimmer for Ms. Stewart as the congressional investigating committees enter the picture. Congressional investigators are threatening to subpoena Ms. Stewart's records, as her story about ImClone becomes doubtful, according to a report from the Chicago Tribune. The House Energy and Commerce Committee have demanded that Ms. Stewart turn over e-mail and telephone records and urged her to reconsider her refusal to be interviewed by the panel's investigators. Committee spokesman Ken Johnson told Reuters that "We are through asking nicely. Clearly, someone has been lying to us and we are going to find out who it is. We will subpoena any documents she refuses to provide." "We have been informed that on advice of your counsel, you will not agree to be interviewed by the committee at this time under any condition," the committee said in a letter to Ms. Stewart. "We sincerely hope and urge that you reconsider your position." "We want to assure ourselves that you have not attempted to mislead this committee with the intent to obstruct an investigation," wrote Rep. Billy Tauzin, the committee's chairman and Rep. James Greenwood, head of its subcommittee on investigations. MASSEY ENERGY: WV Claim May Follow Successful Securities Fraud Suit ------------------------------------------------------------------- If Massey Energy stockholders prevail in a lawsuit that alleges insider trading against Company officials, the state of West Virginia's Investment Management Board will file a proof of claim on behalf of the state pension funds, for losses totaling more than $20,000, the board's executive director said recently, according to a report by the Charleston Gazette. The investment fund unloaded about 24,000 shares of Massey stock in June, on recommendations of the portfolio manager, incurring a loss of $20,916, Executive Director Craig Slaughter said. The shareholders' lawsuit, recently filed in Boone Circuit Court, alleges that Company officials had used false financial projections to artificially inflate the stock's value, and used insider information to sell their shares of stock while it was overvalued. Mr. Slaughter described the board's holdings in Company stock as minimal. The board oversees investment of more than $5 billion in state pension funds, and maintains a highly diversified portfolio, according to Mr. Slaughter. The law firm that brought the class action, Milberg Weiss Bershad Hynes & Lerach, is also representing the Investment Management Board in its suit against WorldCom. The board is trying to recover more than $4.1 million in losses in WorldCom bonds, incurred when the telecommunications company filed for bankruptcy, after allegedly hiding $4 billion in expenses. However, even given these losses, a legislative audit last month recommended that the board continue to be in charge of investment of state pensions and consolidated funds, noting that the board's return on investments had outperformed its peers in 31 of 32 states. MERRILL LYNCH: Investors File Suit Seeking Recovery Of Lost Investment ---------------------------------------------------------------------- Merrill Lynch is accused in a recently filed lawsuit of misleading West Virginia investors with inflated stock ratings, the Associated Press Newswires reports. The suit, filed as a class action by Charleston, W. Va. lawyer Steven Farmer in Marshall County Circuit Court, seeks an unspecified amount of punitive damages. "The case facts point to calculated, intentional and willful conduct on the part of Merrill Lynch that resulted in financial harm to West Virginia investors," said Mr. Farmer. "Merrill Lynch banked on its name recognition, marketing muscle and vast brokerage network to weave a false web of confidence for investors." The lawsuit alleges that Merrill Lynch lured more than $1 billion in investments to its own capital fund and publicly recommended that investors continue to buy or hold onto certain stocks despite internal company e-mails showing negative views of the stocks' performance. The suit further asserts that most of the stocks now have little or no value and virtually all of the investors' money in the fund has been lost. Mr. Farmer estimated that as many as 10,000 state residents could qualify to join the lawsuit if they bought certain technology stocks from Merrill Lynch since 1999. Under state law, clients potentially can recover the money they lost, plus nine percent interest, when stock prices drop. At Merrill Lynch's annual meeting in April this year, Merrill Lynch Chief Executive Officer David H. Komansky said the Company had failed to live up to its standards. He promised changes without admitting to specific wrongdoing. "The e-mails that have come to light are very distressing and disappointing to us," he said. "They fall far short of our professional standards and some are inconsistent with our policies." In June, Merrill Lynch paid $100 million to settle a lawsuit with the New York attorney general, Eliot Spitzer, but the settlement involved only the 50 states, not individual investors. Mr. Farmer's lawsuit is based in part on documents and e-mails from Mr. Spitzer's action against Merrill Lynch. In some e-mails, which have become notorious in the industry, analysts from the Merrill Lynch Internet division said that certain stocks were "going a lot lower" and were "such a piece of crap" or a "dog." However, these same analysts publicly recommended that investors continue to buy or hold onto those stocks. Merrill Lynch spokesman Bill Halldin said the company plans to defend against the lawsuit. MOTOROLA INC.: Recalls 1M Cable Set-Top Boxes For Electric Shock Hazard ----------------------------------------------------------------------- Motorola, Inc. is cooperating with the US Consumer Product Safety Commission (CPSC) by voluntarily recalling about 1 million DCT2000 digital cable set-top boxes installed earlier this year. Pins in the rear of the box that connect to the power cord could break, which could pose an electric shock hazard to consumers. The Company has not received any reports of these set-top boxes causing shock or injury. As previously announced, the Company filed a preliminary report with CPSC about the DCT2000 set-top boxes in June 2002. Digital cable operators distributed these set-top boxes nationwide in conjunction with digital cable services from March 2002 through June 2002. These digital cable set-top boxes are black, about 17-inches wide and 2.5-inches high. "MOTOROLA" and "INTERACTIVE DIGITAL COMMUNICATIONS" are written on the front of the units. The model number, "DCT2000" is written on the cover of the user guide that came with the box. Motorola's DCT2000 set-top box provides cable subscribers access to various digital, audio, and interactive TV services, including expanded channel counts, digital-quality video and audio, interactive program guides for viewing convenience and control, parental control and virtual channels for community and local information. Consumers with these DCT2000 digital cable set-top boxes can continue to use them as normal, but they should not remove the power cord from the rear of the set-top box. If it is necessary to unplug the boxes, power cords should always be unplugged from the wall outlet or other energy source. Motorola estimates about 30,000 of these set-top boxes have power cord pins that could break. Cable operators are contacting their customers to determine if they have a set-top box included in the recall that needs to be replaced. For more information, contact your local cable provider or the Company by Phone: 866-281-1588 anytime or visit the Company's Website: http://www.motorola.com/broadband. NEW JERSEY: Filing Suit V. Companies For Spiraling Pension Fund Losses ---------------------------------------------------------------------- New Jersey plans to sue corporations over alleged misconduct that cost the state's pension system more than $1 billion in stock market losses, Attorney General David Samson said recently, according to a report by The Star Ledger (Newark, NJ). Mr. Samson refused to identify which corporations would be targets of the state's legal action, but said most of them already are facing class actions brought by other states and investors, alleging fraud or malfeasance that drove stock values down. The Attorney General's decision to take legal action is the state's latest response to the depletion of the pension funds that are designed to cover retirement payments to more than 600,000 state workers and teachers. Lawsuits by public pension systems against companies over stock losses are becoming increasingly common, said Alan P. Cleveland, legal counsel to the New Hampshire Retirement System. He said they gained momentum after the 1995 passage of the Private Securities Litigation Reform Act. Attorney General Samson said that an internal review identified several businesses with stock that plummeted because of what he called bad executive decisions. "The state has incurred huge losses that can be attributed in many instances to corporate mismanagement, misconduct and greed," Mr. Samson said. He would not identify the corporations, which he said will be named in the legal papers nor would he state how many were going to be sued. Mr. Samson said the state will hire a team of lawyers from outside his office to manage the cases. No decision has been made when the papers will be filed. "There is a segment of the legal community already involved in litigating these class action lawsuits, and it would make a lot of sense for us to eliminate the learning curve," Mr. Samson said. New Jersey's possible lawsuits might also include investment firms that guided state investors. Like other states, New Jersey could collect a share of the $100 million fine that Merrill Lynch agreed to pay in May after an investigation by New York's attorney general. The fine settles charges that Merrill Lynch analysts misled investors by touting shares in companies so the firm would win highly profitable investment banking business. That potential settlement is also under review, Mr. Samson said. TERRORIST ATTACK: Compensation Fund Hands Out First $1.19M Payment ------------------------------------------------------------------ The first payout from the September 11 compensation fund was handed to the family of a man killed in the World Trade Center attack, the first payment ever to be acknowledged, the Associated Press reports. The family of the victim, a recent college graduate in his 20s, who was unmarried and without children, and who earned nearly $60,000 a year in the financial services industry, received $1.19 million, Roberta Gordon, the lawyer for his family, told AP. The award was for the victim's unfulfilled financial potential and for the family's pain and suffering minus life insurance and workers compensation payments. The payment is the first ever for the fund, which was created by Congress after the attack and is run by prominent negotiator Kenneth Feinberg. Families that are unconvinced about the fund and how it will work will be watching the first round of awards, to get the idea of how the fund will rule on ambiguous issues, such as the waiver of a lawsuit against airlines, other entities or the government. According to an AP report, Awards are based on a formula that includes earning potential and a non-economic payout for pain and suffering of $250,000. Another $100,000 is added for a spouse or each dependent child. Atty. Feinberg estimated that average awards from the fund will be $1.85 million. However, Ms. Gordon told AP that the award was on the high end of the family's expectations. "I thought it was eminently fair," Ms. Gordon said. She added that the award was "another sad milestone" for the family. "They want closure," she said. "This is very emotional for them. Getting this award is not a joyous occasion." Some 650 victims' families have applied to the fund so far, AP reports. The Justice Department, which is administrating the fund, said it could not confirm details of the case or say whether others have accepted fund awards. Spokesman Charles Miller told AP in the next few weeks the department would post on its Web site information about those who have accepted awards from the fund to provide an idea of the awards' size. Names and other identifying characteristics would not be included, he said. TOSHIBA AMERICA: Consumers Sue Over Notebook Computers' Design Flaw ------------------------------------------------------------------- Toshiba America faces a class action filed by owners of its Satellite 5005 series notebooks, alleging the Company knowingly concealed a design flaw that caused the notebooks to overheat and shut down, and compounded the problem with its attempts to fix the situation, Computer Weekly reports. The suit alleges that the Company was aware that its Satellite 5005- S504 and Satellite 5005-S507 contained a design flaw that made them unable to perform at advertised levels due to their inability to dissipate heat from their 1.1GHz Pentium III processors from Intel. According to Computer Weekly, the Company marketed the notebooks as "the ultimate multimedia machine," but the notebooks were unable to handle the high levels of processing power needed for gaming and multimedia presentations. BIOS upgrades provided by the Company to solve the problem prevented the notebooks from shutting down but at the expense of processing speed, rendering them unsuitable for multimedia applications, the plaintiffs claimed. UNITED STATES: Terrorism Policy Entangled With Asian Corporate Conduct ---------------------------------------------------------------------- The United States' global fight against terror has become entangled with the way international corporations operate in Asia, and whether they will be held accountable for the way they operate. A recent report in the Australian Financial Review presents a picture of how the US effort to fight terrorism around the world manifests itself in ways that pose issues of dilemma, of how much gained and lost. This emerged recently through a letter sent from the US Department of State to a district court in Washington, which was hearing a lawsuit against Exxon-Mobil, filed by 11 people from the energy-rich Indonesian province of Aceh. The lawsuit was filed on behalf of the Indonesians by the International Labour Rights Fund, which is campaigning along with US union groups against Exxon-Mobil. The lawsuit claims Indonesian security forces hired by Exxon-Mobil to protect its Arun gas field during the 1990s used murder and torture against Aceh villagers. Exxon-Mobil, which has denied the charge, closed its Arun operation for some weeks last year because of fighting in the area. The State Department, however, appears to be concerned that an intervention by a US court in activities in Aceh, the most explosive of the provinces struggling over their future with Jakarta, would undermine the US government's attempts to win the support of Indonesia, the world's biggest Muslim nation, in the fight against terror. Significantly, President Megawati Soekarnoputri issued a double pledge in her recent annual speech to Parliament - to back the US war on terror, and to crush separatists in Aceh. US Secretary of State Colin Powell, on a visit to Jakarta last Friday, discussed lifting the three- year US ban on training the Indonesian military. Questions remain about the degree to which the two issues can be linked - terrorism and the separatist movement in Aceh - because Aceh has struggled for independence since the days of Dutch control. While its commitment to Islam has caused it to be dubbed the "veranda of Mecca," only the most tenuous connections have linked Aceh with the global aims of a militant Islam. New Securities Fraud Cases AON CORPORATION: Milberg Weiss Commences Securities Suit in N.D. IL ------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class action on behalf of purchasers of the securities of Aon Corporation (NYSE: AOC) between May 4, 1999 and August 6, 2002, inclusive. The suit is pending in the United States District Court, Northern District of Illinois, Eastern Division against the Company, Patrick G. Ryan and Harvey N. Medvin. 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 between May 4, 1999 and August 6, 2002, thereby artificially inflating the price of Company securities. Throughout the class period, as alleged in the complaint, defendants issued numerous statements and filed quarterly and annual reports with the SEC which described the Company's earnings and financial performance. The complaint alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented these adverse facts, among others: (1) that the Company had materially overstated its net income by $27 million in 1999, by $24 million in 2000 and by $5 million in the first quarter of 2002; (2) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (3) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times. On August 7, 2002, before the market opened for trading, the Company shocked the market when it announced, among other things, that: (i) it had failed to meet analysts' expectations on its earnings for the second quarter by a wide margin; (ii) because of the slumping financial markets, it had canceled a spinoff of its insurance underwriting businesses to shareholders; and (iii) the SEC had began an investigation of its accounting and was questioning several items in the Company's accounts, including the reporting of investment write-downs, the timing of some costs and a reinsurance recoverable item and the decision not to consolidate certain special purpose vehicles. The Company also stated that, if the SEC says it is necessary, it will have to restate its earnings for the past three years, and reduce its net income by $27 million in 1999, by $24 million in 2000 and by $5 million in the first quarter of 2002. Following this report, shares of Aon fell $6.43 per share to close at $14.77 per share, a one-day decline of 30.3%, on volume of more than 20 million shares traded, or more than twenty times the average daily volume. For more details, contact Steven G. Schulman or Samuel H. Rudman by Mail: One Pennsylvania Plaza, 49th fl. New York, NY 10119-0165 by Phone: 800-320-5081 by E-mail: Aoncase@milbergNY.com or visit the firm's Website: http://www.milberg.com BAXTER INTERNATIONAL: Milberg Weiss Launches Securities Suit in E.D. IL ----------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class action on behalf of purchasers of the securities of Baxter International Inc. (NYSE: BAX) between January 24, 2002 and July 18, 2002 inclusive. The action is pending in the United States District Court for the Northern District of Illinois, Eastern Division against the Company and: (1) Harry M. Jansen Kraemer, Jr., CEO and Chairman and (2) Brian P. Anderson, CFO The complaint charges 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 materially false and misleading statements to the market between January 24, 2002 and July 18, 2002. Among other things, the complaint alleges that throughout the class period, the Company issued press releases representing that its BioScience and Renal divisions would grow their earnings by percentages in the high-teens and high-single-digits, respectively, in 2002. The complaint further alleges that these, and other, representations were materially false and misleading because they failed to disclose that the Company was experiencing serious problems with its BioScience and Renal divisions. Given these, and other undisclosed problems, defendants' repeated class period assurances of continued growth in 2002 were lacking in any reasonable basis when made, according to the complaint. On July 18, 2002, Baxter issued a press release regarding its results for the second quarter of 2002, announcing disappointing sales growth for the BioScience division and a decline in sales for the Renal division. In addition, the Company took a $51 million charge in connection with an acquisition and a $70 million impairment charge reflecting a decline in the value of certain of the Company's investments. In response to the announcement, the price of the Company's common stock plummeted by 36.5%, falling from a $43.41 per share close on July 17, 2002, to close at $32 per share on July 18, on extremely heavy trading volume. During the class period, Company insiders sold a total of 435,700 Company common shares, reaping gross proceeds in excess of $23.7 million. For more details, contact Steven G. Schulman or Samuel H. Rudman by Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by Phone: 800-320-5081 by E-mail: baxtercase@milbergNY.com or visit the firm's Website: http://www.milberg.com CAPITAL ONE: Finkelstein Thompson Commences Securities Suit in E.D. VA ---------------------------------------------------------------------- Finkelstein, Thompson & Loughran initiated a securities class action in the United States District Court for the Eastern District of Virginia, on behalf of purchasers of the securities of Capital One Financial Corporation (NYSE: COF) between January 15, 2002 and July 16, 2002, inclusive. The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5, by issuing a series of materially false and misleading statements relating to the nature of the Company's business operations, which caused the Company's stock price to become artificially inflated. During the class period, the Company announced that each quarter resulted in record revenues and earnings and that the Company was well capitalized and had attained an excellent credit performance. However, the complaint alleges that these reports were materially false and misleading because the Company omitted that, in breach of regulatory guidelines released on January 31, 2001, it had been under-reserving for subprime loans and was undergoing severe infrastructure inadequacies, with respect to its credit-risk assessment and the Company's information system. When it was revealed that federal regulators had instructed the Company to increase its loan loss reserves and improve the technology that Capital One uses to provide loans and credit cards to subprime consumers, the price of the Company's common stock plunged, declining 39% from a close of $50.60 per share on July 16, 2002, to close at $30.48 per share on July 17, 2002. For more details, contact Conor R. Crowley or Donald J. Enright by Phone: 202-337-8000 by E-mail: crc@ftllaw.com or dje@ftllaw.com or visi the firm's Website: http://www.ftllaw.com. CHARTER COMMUNICATIONS: Bernstein Liebhard Files Securities Suit in CA ---------------------------------------------------------------------- Bernstein Liebhard & Lifshitz LLP initiated a securities class action in the United States District Court for Central District of California on behalf of all persons who purchased or acquired Charter Communications, Inc. (Nasdaq: CHTR) securities between November 9, 1999 and July 17, 2002. The complaint 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 defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of the Company's revenue and earnings caused Company stock price to become artificially inflated, inflicting damages on investors. The suit alleges that the defendants overstated the Company's revenue, failed to appropriately account for installation costs, and artificially inflated the number of subscribers for the Company's basic cable services. On July 18, 2002, when a Merrill Lynch, Co. analyst expressed concerns about potentially misleading accounting practices, Company stock price fell more than 13%. Additionally, a subsequent article in Forbes discusses a Credit Suisse First Boston report that further amplifies these concerns and describes how the Company handles the impact of "churn" (labor and advertising costs) on the Company's balance sheet, by improperly capitalizing approximately 30% of its installation labor costs over an extended time period. For more details, contact Ms. Linda Flood, Director of Shareholder Relations by Mail: 10 East 40th Street, New York, New York 10016 by Phone: 800-217-1522 or 212-779-1414 or by E-mail: CHTR@bernlieb.com. CITIGROUP INC.: Cohen Milstein Commences Securities Suit in S.D. NY ------------------------------------------------------------------- Cohen Milstein Hausfeld & Toll, PLLC initiated a securities class action against Citigroup, Inc., (NYSE: C) in the United States District Court for the Southern District of New York on behalf of all persons who purchased, converted, exchanged, or otherwise acquired the Company's common stock between July 24,1999 and July 23,2002, inclusive. The suit also names as defendants Sanford I. Weill and Todd Thomson. The complaint alleges that the defendants violated the federal securities laws. Specifically, the complaint alleges that, during the class period, the defendants failed to disclose material facts concerning Citigroup's relationship with Enron Corp. The complaint charges, for example, that the Company never disclosed it was structuring financial deals for Enron so that Enron could falsify its financial statements and defraud its investors. After Enron's collapse, the Company continued to misrepresent its potential Enron- related exposure by failing to disclose the true extent of its potential legal liability arising out of its transactions with Enron. As a result of the defendants' failure to disclose the true nature of the Company's relationship with Enron, Company stock price was artificially inflated during the class period, trading as high as $57. Upon news that the Senate Committee found evidence that the Company was involved in Enron's collapse, the stock fell to $27 on trading of 121 million shares. For more details, contact Mark S. Willis or Robert C. Smits by Mail: 1100 New York Avenue, N.W., West Tower, Suite 500, Washington, D.C. 20005-3964 by Phone: 888-240-7775 or 202-408-4600 by E-mail: mwillis@cmht.com or rsmits@cmht.com or visit the firm's Website: http://www.cmht.com HPL TECHNOLOGIES: Abbey Gardy Commences Securities Suit in N.D. CA ------------------------------------------------------------------ Abbey Gardy LLP initiated a securities class action in the United States District Court for the Northern District of California, San Jose Division, on behalf of persons who purchased HPL Technologies (Nasdaq: HPLAE) securities during the period from July 31,2001, the day the Company commenced trading on the NASDAQ to July 19,2002, inclusive, the day the Company announced that it had initiated an investigation into financial and accounting irregularities. The suit names as defendants the Company and: (1) David Lepejian, CEO and Chairman and (2) Ita Geva, Chief Financial Officer 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 the Company common stock For more details, contact Nancy Kaboolian or Mark Gardy by Phone: 800-889-3701 or 212-889-3700 or by E-mail: nkaboolian@abbeygardy.com ICN PHARMACEUTICALS: Abbey Gardy Lodges Securities Suit in C.D. CA ------------------------------------------------------------------ Abbey Gardy, LLP initiated a securities class action against ICN Pharmaceuticals, Inc. (NYSE:ICN) and certain of its officers and directors in the United States District Court for the Central District of California, on behalf of all persons or entities who purchased Company securities during the period from May 3, 2001 and July 10, 2002, inclusive. The suit alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by issuing a series of material misrepresentations. The complaint alleges that the defendants made materially false and misleading statements during the class period that: (1) materially misrepresented the Company's financial performance (inflating reported revenues during the class period); and (2) caused Company stock to trade at artificially-inflated prices. For more details, contact Nancy Kaboolian or Jennifer Haas by Phone: 800-889-3701 or by E-mail: nkaboolian@abbeygardy.com NICOR INC.: Much Shelist Commences Securities Fraud Suit in N.D. IL ------------------------------------------------------------------- Much Shelist Freed Denenberg Ament & Rubenstein, PC initiated a securities class action against Nicor, Inc. (NYSE:GAS) and certain of its officers and directors in the United States District Court for the Northern District of Illinois. The suit was filed on behalf of all persons and entities who purchased the Company's common stock during the period April 18, 2000 through July 18, 2002, inclusive. The suit names as defendants the Company and: (1) Thomas L. Fisher, Chairman of the Board and Chief Executive Officer, and (2) Kathleen L. Halloran, Executive Vice President of Finance and Administration, The defendants allegedly 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 materially false and misleading statements to the market during the class period. These alleged misstatements had the effect of artificially inflating the price of the Company's common stock. The suit alleges that during the class period defendants failed to disclose and/or misrepresented, among other things, that the Company had manipulated its gas cost Performance Based Rate (PBR) plan in order to artificially inflate its operating results and had failed to disclose accounting irregularities at its 50% owned joint venture, Nicor Energy LLC. After the market closed on July 18, 2002, the Company issued a press release announcing that it may restate prior results in response to improprieties at its gas business. The Company further disclosed that the Illinois Commerce Commission and other governmental agencies were reviewing allegations that the Company had acted improperly in connection with the PBR program. The Company also reported that results for the six months ended June 30, 2002 were negatively impacted by accounting irregularities at Nicor Energy LLC, which is a 50-50 joint venture with Dynegy Inc. On July 19, 2002, the price of Company shares plunged 40% from the previous day's close of $38.01 to close at $22.75. For more details, contact Carol V. Gilden by Phone: 800-470-6824 or by E-mail: investorhelp@muchshelist.com PERKINELMER INC.: Wolf Haldenstein Launches Securities Suit in MA Court ----------------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class action in the United States District Court for the District of Massachusetts, on behalf of purchasers of the securities of PerkinElmer, Inc. (NYSE: PKI) between July 15, 2001 and April 11, 2002, inclusive, against certain of its officers and directors. The complaint 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. Throughout the class period, defendants released many statements regarding the Company's business and financial results. These positive accounts were materially false and misleading because, defendants omitted and distorted several materially adverse facts, such as that their Optoelectronics sector was undergoing a serious decrease in its business, hindering it from creating revenues aligned with defendants' expectations. Additionally, the Company had not written down tens of millions of dollars of inventory possessed by that division, in effect, misrepresenting and overstating the operating results of the Company. The complaint further alleges that the Company was sustaining increasing expenses connected with its many divestitures and acquisitions which would cause a material charge to earnings in recognizing these expenses, and that the Company's Life Sciences and Analytical Instruments departments were undergoing decreased demand for their respective products and services. For more details, contact Fred Taylor Isquith, Gregory M. Nespole, 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 Website: http://www.whafh.com. All e-mail correspondence should make reference to PerkinElmer. SEEBEYOND TECHNOLOGY: Wechsler Harwood Commences Securities Suit in CA ---------------------------------------------------------------------- Wechsler Harwood Halebian & Feffer LLP initiated a securities class action in the United States District Court for the Central District of California on behalf all persons who purchased or acquired SeeBeyond Technology Corp. (Nasdaq:SBYN) securities between December 10, 2001 through April 22, 2002, inclusive against the Company and certain of its officers and directors. The complaint charges the Company and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the class period, defendants made positive but false statements about the Company's results and business, while concealing material adverse information about customers pushing out orders. As a result, Company stock traded at artificially inflated levels, permitting defendants to complete a secondary public offering of 8.5 million shares (plus 1.2 million of an over-allotment) for proceeds of $82 million, including 2 million shares sold by the Company's CEO. Immediately before the offering, the Company announced its 4thQ 01 results, which met analyst expectations. Defendants represented that the Company had met the numbers without pulling in sales from the 1stQ 02 such that 1stQ 02 results would be favorable as well. The Company indicated it had good visibility into 1stQ 02 results and forecast revenues of more than $44 million for that quarter. On April 1, 2002, the Company pre-announced its 1stQ 02 results in a press release and conference call indicating it had revenues of $42.0 to $42.5 million in the 1stQ 02. The stock declined somewhat on what was termed a "slight miss" from earnings estimates. Within hours of this release, Company auditors called the Company objecting to its revenue recognition on at least $2.2 million in transactions. The Company concealed this problem over the following weeks. Then, on April 22,2002, after the market closed, the Company admitted the 1stQ 02 revenues were actually only $40.3 million. On this news, the Company's stock dropped by 50% to $3.15 per share. For more details, contact Patricia Guiteau by Mail: 488 Madison Avenue, 8th Floor, New York, New York 10022 by Phone: 877-935-7400 by E-mail: pguiteau@whhf.com or visit the firm's Website: http://www.whhf.com SUPERVALU INC.: Wechsler Harwood Commences Securities Suit in MN Court ---------------------------------------------------------------------- Wechsler Harwood Halebian & Feffer LLP initiated a securities class action in the United States District Court for the District of Minnesota on behalf all persons who purchased or acquired Supervalu, Inc. (NYSE:SVU) securities between April 4, 2001 through June 26, 2002, inclusive against the Company and certain of its officers and directors. The complaint 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 defendants issued statements regarding the Company's annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission (SEC). The complaint alleges that these statements were materially false and misleading because, among other things: (1) the Company was employing improper accounting practices regarding the cost of goods sold for at least the past four years in violation of Generally Accepted Accounting Principles. As a result, the Company announced on June 26, 2002 that it expects $21 million in additional expenses; and (2) based on the foregoing, defendants' statements concerning the financial condition of the Company were lacking in a reasonable basis at all times. The impact of these announcements was immediately felt in the market. Shares of the Company fell sharply following the Company's statements on June 26, 2002. Company stock closed on June 26, 2002, at $21.95 down approximately $6.11, or 22%. Subsequently, on July 1, 2002, a mere five days after the Company disclosed the existence of its internal investigation, the Company did, in fact, materially restate its financial statements for all of Fiscal Years 2000, 2001 and 2002. For more details, contact Ramon Pinon by Mail: 488 Madison Avenue, 8th Floor, New York, New York 10022 by Phone: 877-935-7400 or by E-mail: rpinoniv@whhf.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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