/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/030206.mbx C L A S S A C T I O N R E P O R T E R Thursday, February 6, 2003, Vol. 5, No. 26 Headlines BAYER AG: Manitoba Residents Commence Lawsuit Over Cholesterol Drug BEAZER HOMES: Former Superintendent Says Housing Pads Failed Inspection GRAND TRAVERSE: Nursing Home Employees Commence Civil Rights Lawsuit HOOVERS INC.: Court Dismisses Officers, Directors From Securities Suit ILLINOIS: Suffolk Sheriff Yet To Pay Share in Strip-Search Suit Accord IOWA: Corrections Dept Employees File Mold Suit v. Building Owner ISM CANADA: Police Recover Computer Hard Disk Drive With Client Info KENTUCKY: Nuclear Plant Workers Strike Over Wage, Healthcare Issues LOUISIANA: LA Court Grants Police, Firefighters $10 Million in Back Pay MARTHA STEWART: Plaintiffs File Amended Securities Lawsuit in NY Court NEW HAMPSHIRE: Agency Puts Child Care Issues Before Budget Committees PFIZER INC.: CA Consumer Group Sues Over Promotions for Nuerontin Drug TEMPO PACEMAKERS: Elderly Man To Get $10T Damages For Faulty Pacemaker TOBACCO LITIGATION: Jury Selected In Suit By Smokers' Widow v. Firms TORONTO STAR: To Ask For Dismissal of Libel Suit Over Profiling Series WAL-MART STORES: Study in Gender Bias Suit Shows Pay Gap Favoring Men New Securities Fraud Cases AEGON NV: Schiffrin & Barroway Lodges Securities Fraud Suit in S.D. NY AMERICREDIT CORPORATION: Brodsky & Smith Launches Securities Suit in TX ARIBA INC.: Kaplan Fox Commences Securities Fraud Lawsuit in N.D. CA ARIBA INC.: Marc Henzel Commences Securities Fraud Lawsuit in N.D. CA MCSi INC.: Brodsky & Smith Commences Securities Fraud Suit in S.D. Ohio MICHAELS STORES: Cauley Geller Commences Securities Lawsuit in N.D. TX MICHAELS STORES: Milberg Weiss Commences Securities Lawsuit in N.D. TX TRANSKARYOTIC THERAPIES: Brodsky & Smith Launches Securities Suit in MA TRANSKARYOTIC THERAPIES: Cauley Geller Commences Securities Suit in MA TRANSKARYOTIC THERAPIES: Schiffrin & Barroway Files Investor Suit in MA VERITAS SOFTWARE: Glancy & Binkow Commences Securities Suit in N.D. CA VERITAS SOFTWARE: Rabin & Peckel Commences Securities Suit in N.D. CA WESTAR ENERGY: Brodsky & Smith Commences Securities Lawsuit in KS Court ********* BAYER AG: Manitoba Residents Commence Lawsuit Over Cholesterol Drug ------------------------------------------------------------------- Bayer Inc. faces a class action filed in the Manitoba Court of Queen's Bench against Bayer Inc. on behalf of two Manitoba residents who were injured by the cholesterol-reducing drug, Baycol. The class action was filed by Mrs. Marilyn Walls of Lac du Bonnet, Manitoba and Mrs. Ethel Nick of Portage La Prairie, Manitoba, who both experienced weakness, pain, muscle loss and damage to their muscle tissue caused by their ingestion of Baycol. They both continue to suffer from these injuries which have impaired their enjoyment of life and interfered with their regular, daily activities. According to the Statement of Claim filed today in Winnipeg, "Baycol was a defective product. It caused serious and potentially life- threatening side effects including rhabdomyolysis, myopathy and myosistis. Baycol was unsafe when compared with other available cholesterol-lowering medications and was not medically efficacious". Baycol was taken off the market in August 2001 but not before 100 deaths worldwide were attributed to it. In extreme cases rhabdomyolysis, a condition in which muscle tissue breaks down and passes into the blood stream causing kidney failure and eventually death, has occurred. More than one million prescriptions for Baycol were written in Canada. It appears that Bayer may have learned of the serious side effects of Baycol long before the drug's recall. Bayer's parent company, Bayer AG received a report that the drug may have been a secondary cause in the death of a patient who had taken Baycol over a year and a half before it was introduced to the market. Class action lawyer David Klein of Klein Lyons of Vancouver filed the lawsuit on behalf of Wall and Nick. According to Mr. Klein "the injuries caused by Baycol could have been prevented by more thorough testing methods and clinical trials. This is one of the first class actions under the Manitoba Class Proceedings Act that came into force on January 1st, 2003". For more details, contact David Klein by Mail: 1333 W. Broadway, Suite 1100, Vancouver, B.C. by Phone: (800) 468-4466 or (604) 874-7171 BEAZER HOMES: Former Superintendent Says Housing Pads Failed Inspection ----------------------------------------------------------------------- A former construction superintendent for Beazer Homes testified recently that the pads, or foundations, at the development, Village at Craig Ranch, in North Las Vegas, failed several inspections for moisture saturation, The Las Vegas Review-Journal reports. Scott Allred, now living in Utah, was questioned about the testing and certification of moisture content around the pads, in a long - the trial began in early November - construction defect trial, involving 200 homeowners seeking $25 million in damages in a class action. The homeowners contend that the construction defects were caused by expansive soil conditions. Mr. Allred said he soaked the foundations for three to four days using a water hose if he could not get a water truck to the site. He built a three- to four-inch berm to keep the water from running into the street. "Specifically, regarding moisture certification, you failed those tests?" Beazer attorney Megan Dorsey asked. "Yes, I failed them," Mr. Allred answered. Robert Maddox, representing the homeowners, asked Mr. Allred whether he had seen any documentation from GeoSoils on the company's inspection process. Mr. Allred said he had not. The Beazer case is among 200 construction defect lawsuits before the District Court, and the first to go to such lengthy litigation. Most settle even before entering the trial phase. GRAND TRAVERSE: Nursing Home Employees Commence Civil Rights Lawsuit -------------------------------------------------------------------- The Grand Traverse Pavilions faces a civil rights class action filed in Grand Traverse County Circuit Court, Michigan on behalf of all its employees, alleging the Pavilions engaged in hiring practices that violated civil rights, the Record Eagle reports. The suit charged the nursing home with forcing employees to give up their rights to sue for damages. Attorney Enrico Schaefer filed the suit, which says that employees have to sign a waiver when they apply for a job that limits an employee's right to sue to 180 days from the date of an alleged civil rights violation. Mr. Schaefer said that because of certain filing requirements for state and federal lawsuits, the 180-day limit makes it virtually impossible for lawsuits over grievances to be filed on time. Lawyers for the Grand Traverse Pavilions said that the lawsuits amount to harassment and only waste time and resources. Thomas Wurst, attorney for the Pavilions, told the Record Eagle that Mr. Schaefer's claim is simply not true. "You can file a lawsuit and pursue a charge," he said. "He is 100 percent wrong." The Company has asked for dismissal of the suit, which will be heard later this month. In that case, former Pavilions nurse Bonita Williams sued the nursing facility, claiming she was demoted after a patient's wife called her a "dirty Indian." Ms. Williams is asking for damages over $50,000 for lost pay and for medical problems she says she suffered as a result of humiliation, the Record Eagle states. HOOVERS INC.: Court Dismisses Officers, Directors From Securities Suit ---------------------------------------------------------------------- The United States District Court for the Southern District of New York dismissed Hoovers, Inc.'s current and former officers and directors as defendants in the consolidated securities class action filed against them, the Company and one of the investment banks that was an underwriter of the Company's July 1999 initial public offering. The consolidated suit was filed on behalf of purchasers of Company stock during the period from July 20, 1999, through December 6, 2000. Plaintiffs allege that the underwriter defendants agreed to allocate stock in the Company's initial public offering to certain investors in exchange for excessive and undisclosed commissions and agreements by those investors to make additional purchases of stock in the aftermarket at pre-determined prices. Plaintiffs allege that the prospectus for the Company's initial public offering was false and misleading in violation of the securities laws because it did not disclose these arrangements. The actions seek damages in an unspecified amount. The action is being coordinated with more than 300 other nearly identical actions filed against other companies. In October 2002, Plaintiffs offered the Company named officer and named director a tolling agreement by which these two defendants could be dismissed from the lawsuit without prejudice. The offer was accepted by the named officer and named director. ILLINOIS: Suffolk Sheriff Yet To Pay Share in Strip-Search Suit Accord ---------------------------------------------------------------------- Suffolk County Sheriff's Office still hasn't paid the $5 million it owes to settle a lawsuit by women illegally strip-searched at the Nashua Street Jail, prompting lawyers to file papers in federal court yesterday that would force the sheriff's office to pay the money that was due November 29, the Boston Herald reports. The suit was filed on behalf of 5,400 women who were unconstitutionally strip-searched after being arrested, including an East Boston woman arrested in 1998 because she did not return an overdue video game rented by her children. US District Judge Nancy Gertner ruled in 2001 that the blanket strip-search policy was unconstitutional and approved the final settlement last July. It penalized the sheriff's office and the City of Boston with 12 percent interest on their share of the settlement, compounded daily, for every day they fail to pay after the November 29 deadline, the Boston Herald reports. The sheriff's office and the City of Boston agreed in July to pay a total of $10 million to women who were strip searched in violation of their constitutional rights between 1995 and 1999. While the City of Boston paid its $5 million on time, the Suffolk County Sheriff's Office has not paid its share of the settlement, incurring about $50,000 in interest each month the payment is late, the Herald states. A spokesman for Suffolk County Sheriff Andrea Cabral would not comment on whether the department, which has suffered deep budget cuts over the last two years, has enough cash to pay the settlement. Howard Friedman, the attorney representing about 1,500 women who qualify to share the settlement, said yesterday that the sheriff's office had no excuse. "I think what it really shows is disorganization," Mr. Friedman told the Herald. IOWA: Corrections Dept Employees File Mold Suit v. Building Owner ----------------------------------------------------------------- The owner of the Iowa Department of Corrections building faces several lawsuits, one of them a class action, filed by employees of the department, seeking compensation for alleged damage to their health, citing the building's water leaks, air-quality problems and high levels of mold, the qctimes.com reports. The suits, filed in Scott County District Court, accuse Community Resources Corporation, for allegedly failing to identify and repair water leaks, ignoring visible mold and failing to prevent mold growth or repair raw sewage leaks. One of those lawsuits, if approved as a class action suit, potentially could allow other employees and people who have walked in and out of the building to join, lawyer Dennis VanDerGinst told qctimes.com. A former secretary at the building, Susan Purdy, was diagnosed with multiple sclerosis in September 2000, but that diagnosis was discarded a short time later when a spinal tap ruled out the disease. Ms. Purdy told qctimes.com she suffered from nausea, headaches, fatigue and chronic sinus trouble. Willie Stevenson, a security guard at the building from 1987 to April 2001, also filed suit. He blames struggles with brain tumors, a seizure disorder and hearing, eyesight and memory problems on mold levels in the building. Other employees suing are: (1) Mary Schave, (2) Traci Bray, (3) Jeffrey and Diana Danielson, (4) Cynthia and Robert Weil, (5) Cindy and David VanLandegen, (6) Judith Cary, (7) Kim Crandall, and (8) Nancy Simms Davenport lawyer Tom Waterman, who represents Community Resources, did not return telephone calls from the Quad-City Times seeking comment Tuesday. However, he said in July that any cleanup deemed necessary in pending studies by the health department or the Iowa Occupational Safety and Health Division, or IOSH, would be the responsibility of the building tenants. Dr. Richard Lipsey, a toxicologist, took cotton swab samples from the building in February 2002, revealing what he said are toxic mold levels as much as 12,000 times higher than those found in an average household, qctimes.com reports. The IOSH slapped a $5,625 fine on the Department of Correctional Services for problems it found with asbestos, a protective-equipment program, blood-borne pathogen exposure policies and respirator-usage plans within the building. ISM CANADA: Police Recover Computer Hard Disk Drive With Client Info -------------------------------------------------------------------- Regina, Canada police recovered a computer hard-disk drive declared missing from information system provider ISM Canada, which contains confidential information for more than one million people, the Globe and Mail reports. The drive contains a variety of data including account information for customers of: (1) Saskatchewan Power Corporation, (2) Saskatchewan Telecommunications, (3) the provincial workers' compensation plan, (4) a unit of Co-operators Group Ltd. of Guelph, Ontario, (5) Winnipeg-based Investors Group Inc. and (6) thousands of Manitoba businesses "Late (Monday) our people recovered the hard drive," Sergeant Rick Bourassa of the Regina police department told the Globe and Mail. "Charges are pending against a single individual." Sgt. Bourassa would not say where the disk was recovered or who will be charged. He added that investigators are examining the disk to see if any of the information on it was used. "There is nothing to indicate at all through the whole course of the investigation that the information was targeted or that it was used at all," he said. "However, we have people looking at it to confirm that." Anne Mowat, a spokeswoman for ISM, declined to comment on the recovery of the disk other than to say the company is co-operating with the police, the Globe and Mail reports. She also declined to say whether an ISM employee is the target of police. The disk was reported missing from ISM Canada's Regina office on January 16. Initially, government officials indicated just 88 WCB clients were affected by the theft. However, last week, WCB chief executive officer Peter Federko sent letters to more than 4,600 clients informing them information concerning their WCB annuity may have been lost by ISM, which supplied computer services to the board until August of last year, the Star Phoenix reports. The WCB clients were told the personal information included their injury claim numbers, names, addresses and birth dates, in addition to information on the financial performance of their annuity from 1996 to 2000, an earlier Class Action Reporter story states. Clients have launched a class action against the Company over the loss of private information, an earlier Class Action Reporter story states. The suit alleges the companies failed to properly protect the information and did not promptly inform those affected. KENTUCKY: Nuclear Plant Workers Strike Over Wage, Healthcare Issues ------------------------------------------------------------------- Hourly workers at the Paducah, Kentucky Gaseous Diffusion Plant went on strike Tuesday, to protest over wage, healthcare and pension issues. 620 workers joined the strike, about half of the 1,250 work force, leaving managers to run the plant, which is the nation's only plant that enriches uranium for commercial nuclear power, the Associated Press reports. The contract of Local 5-550 of Paper, Allied-Industrial, Chemical and Energy Workers International expired Friday but had been extended to give the union time to vote on the latest offer from USEC. "We have expressed a willingness for the last eight weeks that this has been going on to reach a mutually acceptable resolution," Leon Owens, president of the local union told AP. "The problem has been the company's unwillingness to address union issues." Some 97 percent of the membership had voted Friday to reject the offer, Mr. Owens said. USEC spokeswoman Elizabeth Stuckle told AP the company has been willing to meet with a federal mediator and is willing to work with the union. "We still hold open that offer to them," she said. "We did not walk away from the table." Mr. Owens continued the union and management are too far apart for a mediator to be useful. Union leaders say the company's salary increases will not offset increases in health care costs and say they are not satisfied with pension increases. Ms. Stuckle told AP USEC would continue operations with the plant's salaried work force. "We fully expect to continue meeting our safety, nuclear safety and production obligations and to continue to exceed our customer's expectations of quality and service during this time," she said. Naturally occurring uranium contains only small amounts of the isotope uranium-235, which is needed to support chain reactions in nuclear reactors and weapons. The metal must be refined to boost the concentration of that isotope, a process called enrichment. Most nuclear power plants require uranium containing about 5 percent U-235 to other isotopes of uranium; nuclear weapons need about 90 percent, AP reports. LOUISIANA: LA Court Grants Police, Firefighters $10 Million in Back Pay ----------------------------------------------------------------------- Louisiana State Court ruled in favor of the state's police and firefighters by ordering the Lafayette Consolidated Government to pay them more than $10 million in back pay, the Lafayette Advertiser reports. State Judge Edward Rubin ruled Monday in the case that a plan adopted by the consolidated government in 1978 violated state law. The amount of back pay owed will be determined at trial or through a settlement, and consolidated government can appeal Monday's ruling, although no decision has been made, the Advertiser states. "We are estimating that the approximate amount of wages could be in the neighborhood of $12 million," said attorney Daniel Landry, who represents a group of about 600 former and current police officers and firefighters. At issue is the roughly $300 per month the state pays to supplement the pay of police and firefighters. The state payments usually begin after a public servant has worked for one year, the Advertiser reports. Judge Rubin ruled that the consolidated government violated state law by reducing the local salary contribution once the state supplemental pay began. That resulted in overall salaries remaining the same after state supplemental pay kicked in. "They were taking $300 to subsidize their budget," said Jay Castille, first vice president of the local firefighters union. Consolidated Government President Walter Comeaux said the pay plan in question started in 1978 at the behest of fire and police officials in an effort to help recruitment. Mr. Comeaux told the Advertiser the local government agreed to pay extra to new hires so they would not have to wait one year before bringing home a decent paycheck. Once the state supplemental pay kicked in, he said, the local government would cut its contribution back. The consolidated government stopped paying what Comeaux called "an advance" in 2001, two years after the lawsuit was filed. Consolidated Government attorneys maintained that the pay plan was legal. They said the state law at issue in the case was meant to keep local governments from using state pay to offset local pay and should not apply when a local government pays out money to hold employees over until the state pay begins, the Advertiser reports. MARTHA STEWART: Plaintiffs File Amended Securities Lawsuit in NY Court ---------------------------------------------------------------------- Plaintiffs in the securities class actions filed against domesticity maven Martha Stewart and her company Martha Stewart Living Omnimedia filed an amended suit in the United States District Court in Manhattan, New York, alleging Ms. Stewart and her senior executives engaged in illegal insider trading of company stock. The suit cites an unnamed former senior executive of Martha Stewart Living Omnimedia who claims it was well known at the top level of the company that Ms. Stewart was under federal investigation, and that before that information was made public, top executives unloaded company stock, CNN reports. Ms. Stewart faces a government probe on her, her lifestyle and most especially about her sale of Imclone stock the day before the Food and Drug Administration refused the biotech firm's application for a cancer drug. Ms. Stewart sold nearly 4,000 shares of ImClone Dec. 27, 2001; after the FDA's decision the next day, shares of ImClone plummeted. The senior executives named in the lawsuit include Sharon Patrick, president of the company. "The former MSO (Martha Stewart Omnimedia) employee attended a meeting in Sharon Patrick's office in March 2002," the suit states. "The ImClone/Stewart investigation was being discussed, including its likely adverse impact on MSO shares." Sales records filed with the SEC show Ms. Patrick and other company officers and executives -- Greg Blatt, Margret Roach, Gael Towey, Dora Cardinale, Lauren Stanich and Suzanne Sobel -- all sold shares between March and May at prices ranging from $20-$17.95, CNN reports. The suit says executives made their sales through former Merrill Lynch broker Peter Bacanovich, who was a broker for both Stewart and former ImClone Chief Executive Sam Waksal, CNN states. Martha Stewart Living officials and Peter Bacanovich's attorney could not immediately be reached Tuesday evening for comment. NEW HAMPSHIRE: Agency Puts Child Care Issues Before Budget Committees --------------------------------------------------------------------- New Hampshire's Division for Children, Youth and Families, recently made a presentation on its "issues and solutions" before a joint meeting of the House and Senate Finance committees, Associated Press Newswires reports. The state is being sued over the agency's alleged failure to improve protection efforts for abused and neglected children. The Disabilities Rights Center and other advocates for children and youth asked the US District Court last month to find the state failed to comply with a 1997 agreement to improve the care it gives children. The agreement was reached as a result of a class action filed in 1991, against the state. The settlement gave the state five years to improve 12 areas of child protection. Subsequently, a court-appointed panel found the state was not doing enough to comply. The original civil rights complaint alleged the state's treatment of abused and neglected children and children in out-of-home care violated the Constitution and federal law. With the agreement set to expire September 1, 2002, the parties agreed in the summer of that year to extend the agreement to January 31, 2003. The parties further agreed that the state agency would add 60 workers to its child protection staff. The review panel found significant improvements had taken place in adoption, foster care services and training of employees. However, it found the division was failing to conduct quick and thorough child abuse and neglect investigations, among some other things. In September, the joint legislative Fiscal Committee refused to go along with a request for $1.7 million to hire 62 workers. The committee cited a need first to solve management problems at the division. Fiscal Chairman Neal Kurk, who also chairs the House Finance Committee, said the agency's staffing needs had to be reviewed "in the context of the whole division and all the problems the division is facing, not just in management, but in philosophy." PFIZER INC.: CA Consumer Group Sues Over Promotions for Nuerontin Drug ---------------------------------------------------------------------- Pfizer, Inc. and its Parke-Davis unit faces a lawsuit filed by California consumer groups in Los Angeles Superior Court, alleging the two entities circumvented federal government rules to promote scientifically unproven "off-label" uses of their Neurontin drug, the Associated Press reports. The coalition of groups called Community Catalyst's Prescription Access Litigation filed the suit, which asserts that Parke-Davis launched an illegal promotional campaign in 1995 to attract new patients to Neurontin, which had been approved by the US Food and Drug Administration only for the treatment of epilepsy. Neurontin's marketing is the subject of a grand-jury investigation begun by the US attorney's office in Boston. In addition, 47 states and the District of Columbia have launched criminal or civil probes, the Associated Press reports. The latest lawsuit, filed on behalf of the California Public Interest Research Group, the Congress of California Seniors and USAction, alleges that the campaign included illegal cash kickbacks to physicians and other methods to increase sales of the drug for non-approved uses. Parke-Davis sought to promote Neurontin for treatment of at least 13 separate conditions, the suit claims, including migraines, bipolar disorders and restless leg syndrome, AP states. A Pfizer spokeswoman declined to comment on the lawsuit, citing company policy, AP reports. TEMPO PACEMAKERS: Elderly Man To Get $10T Damages For Faulty Pacemaker ---------------------------------------------------------------------- Sydney federal court awarded almost $10,000 to a seventy-year-old man who filed a class action against the Australian Distributor of Tempo PaceMakers, ABC News Online reports. Kevin Courtney, 70, commenced the suit alleging that he suffered pain and suffering after he was fitted with a potentially faulty pacemaker. The court ruled there was a "super-added risk" the pacemaker could fail prematurely because of its batteries running out earlier than expected. Mr Courtney had his pacemaker removed two years ago. Justice Ronald Sackville has ordered the Australian distributor of the device - Medtel to pay close to $10,000 for his pain and suffering, ABC News reports. He found the pacemaker was not of merchantable quality, although he said tests later showed it would have operated normally had it remained in Mr. Courtney's body. The decision could lead to compensation being granted to more than 500 other people who are part of a class action against the distributor. TOBACCO LITIGATION: Jury Selected In Suit By Smokers' Widow v. Firms -------------------------------------------------------------------- A jury was selected in a lawsuit filed against Philip Morris and R.J. Reynolds by Sylvia Allen, the widow of James Allen, 64, her husband and business partner, as well as a North Miami Beach photographer, who died of lung cancer after smoking for 50 years, Associated Press Newswires reports. Individual lawsuits against the companies are of interest to plaintiffs' lawyers as possible models in future tobacco class action. They may serve as models of causes of action allowed by the court, as well as for the phases of presentation the court orders or allows; for the defenses presented by the industry; and for the way issues are presented by the court to the jury for its deliberations. As has been done in other smoker trials, Ms. Allen's attorney plans to use internal tobacco industry documents against the cigarette makers on subjects including the health effects of smoking and the role played by nicotine in addiction. A panel of three men and three women, plus two men serving as alternates, was selected as jury. During the selection process, attorneys questioned potential jurors about their attitudes toward smoking and their knowledge about the health effects of cigarettes. One candidate who once smoked four packs of cigarettes a day, said in a questionnaire that he did not believe tobacco companies manipulated nicotine levels or intentionally put harmful ingredients in cigarettes. The candidate, a printing company plant manager, said those were his personal opinions, but he was willing to be educated. Another prospective juror had doubts about whether smokers should be allowed to sue for smoking-related disease. "There is a certain responsibility that the user should take for himself," he said. "I personally don't see why somebody can't stop smoking if he wants to." Neither of those two candidates made it to the final panel. Ms. Allen's lawsuit is separate from a record $145 billion punitive damage award covering sick Florida smokers in 2000. That verdict is on appeal. Mr. Allen's cancer was diagnosed after the window of time closed for Florida smokers to join the class in that lawsuit. Therefore, Ms. Allen sued separately the following year. US District Court Judge James Lawrence King is restricting possible damages to a compensatory award, having ruled earlier that a 1999 law eliminates punitive damages as an option. TORONTO STAR: To Ask For Dismissal of Libel Suit Over Profiling Series ---------------------------------------------------------------------- The Toronto Star will bring a motion asking the Toronto court to bring to an early end a lawsuit by the police officers over the Star's recent policing, race and crime series. The highly publicized class action libel suit was served on the Star on January 17, 2003. The lawsuit is on behalf of all 7,200 members of the Toronto Police service, and seeks $375,000 for each member, or a total of $2.7 billion. "We have never regarded the lawsuit as a serious legal threat," Publisher John Honderich said in a statement. "Rather, it seems more an intent to stifle the debate on a very important issue." The Star's motion will contend that the stories did not single out individual police officers, and there can be no libel of the force as a whole. "The law supporting this is well established and clear," said Mr. Honderich. "For that reason, the Star will be asking the court to find that what it published does not give any police officer the right to sue . The Star stands firmly behind its stories and believes it had a compelling public duty to publish what it did. The outpouring of response to the Star stories has merely underlined that racial profiling by police is a real issue in Toronto . The Star will continue to engage in this important debate." For its race and crime series beginning October 19, the Star obtained a modified copy of a Toronto police arrest database, listing arrests from 1996 to early last year, through a Freedom of Information request. The database records more than 480,000 incidents in which an individual was arrested or ticketed and almost 800,000 criminal and other charges. The Star's analysis found that blacks in certain circumstances were treated differently than whites. In particular, an analysis of drug possession charges showed blacks charged with one count of simple drug possession were released at the scene less often than whites facing the same charge, and that blacks were held overnight for bail hearings at twice the rate of whites. A further analysis of certain traffic offences - out-of-sight offences that typically would come to light following a traffic stop - showed black motorists were in the database as being ticketed at a rate much higher than they represent in the population. "The Star also stands behind its vital right to publish what it did without unfounded legal challenge," said Mr. Honderich. "Freedom of expression, guaranteed under our Charter, requires that scrutiny of public bodies, such as the police force, cannot be chilled by threat of defamation proceedings." WAL-MART STORES: Study in Gender Bias Suit Shows Pay Gap Favoring Men --------------------------------------------------------------------- A study conducted on Wal-Mart Stores, Inc. as part of a federal discrimination class action revealed that a pay gap exists between the retailer's female and male workers. The study was based on an analysis of Wal-Mart payroll data obtained under litigation, the Los Angeles Times reports. The study states that: (1) female workers earned 4.5% to 5.6% less than men doing similar jobs and with similar experience levels between 1996 and 2001; (2) among nonsalaried workers, men earned an average of 37 cents an hour more for similar work; (3) the pay gap widens higher up the management ladder, finding that male management trainees make an average of $23,175 a year, compared with $22,371 for women trainees; (4) at the senior vice president level, the average man makes $419,435 a year, the report said, whereas the four women in the position earn an average of $279,772. Wal-Mart executives, reached late Monday, had not seen the study by Oakland-based statistician Richard Drogin and would not comment, the LA Times reports. However, the company, which employs 1 million people, maintains it does not discriminate on the basis of gender. Mr. Drogin's report did not compare Wal-Mart's salary structure with those of other retailers. His study and an analysis of women in management at Wal-Mart and other retailers were submitted to Wal-Mart lawyers Monday by a coalition of six law firms that are pursuing the discrimination suit, the LA Times states. The reports will be used to bolster an attempt to win class-action status for the case, which was filed in federal court in San Francisco in June 2001. The proposed class - women hired nationwide since 1999 - could include more than 1 million current and former employees, making it the largest single job discrimination case in US history. "Women start out being paid less, and the gap just widens," Brad Seligman, executive director of the Impact Fund, an Oakland-based nonprofit legal organization that is pursuing the suit told the LA Times. "At every level, men get paid more than women, and it does not appear to be explained by anything objective like seniority or anything else that we can identify . The only difference is gender." New Securities Fraud Cases AEGON NV: Schiffrin & Barroway Lodges Securities Fraud Suit in S.D. NY ---------------------------------------------------------------------- The law firm of Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of Aegon N.V. (NYSE:AEG) from August 9, 2001 and July 22, 2002, inclusive. The complaint charges Aegon N.V. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that during the years preceding the class period, and during the class period, as stock markets suffered substantial declines, increasing numbers of investors gravitated from variable products to fixed products. Aegon distinguished itself from its competitors with the claim that its purportedly broad product mix better enabled it to take advantage of this market shift while it simultaneously assured investors that it had sufficient reserves to fund the sharply increasing guaranteed payout obligations required by its fixed products. The complaint further alleges that Aegon also assured investors that it was less vulnerable to the vicissitudes of the equity and credit markets than competitors because the Company matched "high-quality investment assets ... in an optimal way to the corresponding insurance liability, taking into account currency, yield and maturity characteristics." The Company claimed that, for the foregoing reasons, " consistency and reliability in earnings forecasting is a particular source of pride" and that, while not immune to equity and real estate market shifts, the Company was not subject to sharp downward variations in annual net income. Accordingly, the Company reduced its earnings guidance for 2002 but at all relevant times maintained its forecast that 2002 net income would at least equal 2001 net income. For more details, contact Marc A. Topaz or Stuart L. Berman by Phone: 1-888-299-7706 (toll free) or 1-610-667-7706 by E-mail: info@sbclasslaw.com AMERICREDIT CORPORATION: Brodsky & Smith Launches Securities Suit in TX ----------------------------------------------------------------------- Law offices of Brodsky & Smith, LLC initiated a securities class action on behalf of shareholders who purchased the common stock and other securities of AmeriCredit (NYSE:ACF) between April 14, 1999 and September 16, 2002, inclusive, in the United States District Court for the Northern District of Texas, Fort Worth Division against the Company and certain of its officers and directors. The action charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing a series of materially false and misleading statements regarding AmeriCredit's business and financial condition during the class period. Specifically, the suit alleges that, inter alia, defendants were improperly deferring delinquent loans during the class period in order to avoid consumer defaults so that AmeriCredit would have access to cash that otherwise would have been restricted pursuant to the terms of controlling trust agreements. For more details, contact Marc L. Ackerman by Mail: Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004 by Phone: 877-LEGAL-90 or by E-mail: mackerman@brodsky-smith.com ARIBA INC.: Kaplan Fox Commences Securities Fraud Lawsuit in N.D. CA -------------------------------------------------------------------- Kaplan Fox & Kilsheimer LLP filed a securities class action against Ariba, Inc. (NASDAQ: ARBAE) and certain of its officers and directors in the United States District Court for the Northern District of California. This suit is brought on behalf of all persons or entities, other than defendants, who purchased Ariba common stock between January 11, 2000 and January 15, 2003, inclusive. The complaint charges Ariba and certain of its officers and directors with violations of the federal securities laws. It alleges that beginning in January of 2000 and throughout the class period, defendants issued numerous positive statements in press releases and filings with the Securities and Exchange Commission (SEC) regarding Ariba's revenue growth and projections. These statements falsely portrayed Ariba's business prospects and artificially inflated and maintained the price of Ariba common stock. On January 15, 2003, Ariba announced that it would restate all of its financial results for ten quarters, covering the quarter ended March 31, 2000 through the quarter ended June 30, 2002, and the fiscal years for 2000 and 2001. The Company further announced on that date that it may be delisted by the NASDAQ Stock Market because it has not filed its annual report with the SEC for 2002. Ariba's stock plunged 15% on the day of this announcement. For more details, contact Frederic S. Fox or Hae Sung Nam by Mail: 805 Third Avenue, 22nd Floor, New York, NY 10022 by Phone: (800) 290-1952, (212) 687-1980 by Fax: (212) 687-7714 or visit the firm's Website: http://www.kaplanfox.com ARIBA INC.: Marc Henzel Commences Securities Fraud Lawsuit in N.D. CA --------------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Northern District of California on behalf of purchasers of Ariba, Inc. (NASDAQ: ARBA) publicly traded securities during the period between January 11, 2000 and January 15, 2003. The complaint charges Ariba and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Ariba is a spend-management software solutions provider. Ariba provides software, services and network access to enable corporations to evaluate and manage the cash costs associated with running their business. On January 15, 2003, the Company issued a press release entitled, "Ariba Provides Update on Accounting Review and Restatement of Financial Statements." The press release stated in part: "Ariba, Inc. announced today that it will restate its financial statements for the fiscal years ended September 30, 2001 and 2000 and for the quarters ended March 31, 2000 through June 30, 2002 as a result of an ongoing review of accounting matters." While Ariba's financial statements were admittedly false, the Company's top officers and directors took advantage of this and sold nearly $692 million worth of their Ariba shares to the unsuspecting public. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's Website: http://members.aol.com/mhenzel182 MCSi INC.: Brodsky & Smith Commences Securities Fraud Suit in S.D. Ohio ----------------------------------------------------------------------- The Law offices of Brodsky & Smith, LLC initiated a securities class action on behalf of shareholders who acquired MCSi, Inc. (Nasdaq:MCSI) securities between July 24, 2001 through February 26, 2002, inclusive, in the United States District Court for the District for the Southern District of Ohio, Western Division, against the company and some of its officers and directors. The action 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 Evan J. Smith by Mail: Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by Phone: 877-LEGAL-90 or by E-mail: esmith@brodsky-smith.com MICHAELS STORES: Cauley Geller Commences Securities Lawsuit in N.D. TX ---------------------------------------------------------------------- Cauley Geller Bowman Coates & Rudman, LLP initiated a securities class action in the United States District Court for the Northern District of Texas on behalf of purchasers of Michaels Stores, Inc. (NYSE: MIK) stock during the period between August 8, 2002 and November 7, 2002, inclusive. The complaint charges Michaels Stores 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 repeatedly represented that Michaels Stores' financial condition was strong and that the Company was increasing its market share and would continue to do so in the foreseeable future. The Company was persistent in its claims despite a known downturn in the consumer-goods markets and a very, very difficult earnings environment. In fact, throughout the Class Period, defendants consistently appeared at analyst conferences and in other public forums and made very positive statements about Michaels Stores. Thus it was only on November 7, 2002, when the Company released results for its third quarter 2002, that investors learned the following: (1) defendants' claims that Michaels Stores' purported "record setting" growth was the result of systems and/or infrastructure upgrades, or any other improvements made by defendants, were false; (2) many of Michaels Stores' customers were already curtailing their spending for hobby and entertainment -- or discretionary purchases -- by the inception of the Class Period and, as a result, Michaels Stores was experiencing the same adverse market conditions which were negatively impacting the Company's competitors; (3) the Company was not "in great shape," it did not have "considerable momentum" and was not proceeding according to guidance sponsored or provided by defendants; and (4) notwithstanding defendants' efforts to create the materially false impression that the Company had achieved record results in the fiscal second quarter, the truth was that Michaels Stores was already suffering from the same adverse market conditions other retailers were experiencing. In all, during the class period, at the time that Michaels Stores was being adversely affected by the aforementioned factors, but prior to any disclosure to the market, certain of the defendants sold more than $15.3 million worth of their personally held Michaels Stores common stock while in possession of material adverse information. In fact, the CEO and President of the Company, Mr. Rouleau, sold over 125,000 shares of his privately held Company shares during the class period for over $5.8 million in proceeds. For more details, contact Jackie Addison, Heather Gann or Sue Null by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 by E-mail: info@cauleygeller.com or visit the firm's Website: http://www.cauleygeller.com MICHAELS STORES: Milberg Weiss Commences Securities Lawsuit in N.D. TX ---------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class action on behalf of an institutional investor in the United States District Court for the Northern District of Texas on behalf of purchasers of Michaels Stores, Inc. ("Michaels Stores") (NYSE:MIK) stock during the period between August 8, 2002 and November 7, 2002. The complaint charges Michaels Stores 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 repeatedly represented that Michaels Stores' financial condition was strong and that the Company was increasing its market share and would continue to do so in the foreseeable future. The Company was persistent in its claims despite a known downturn in the consumer-goods markets and a very, very difficult earnings environment. In fact, throughout the class period, defendants consistently appeared at analyst conferences and in other public forums and made very positive statements about Michaels Stores. Thus it was only on November 7, 2002, when the Company released results for its third quarter 2002, that investors learned the following: (1) Defendants' claims that Michaels Stores' purported "record setting" growth was the result of systems and/or infrastructure upgrades, or any other improvements made by defendants, were false; (2) Many of Michaels Stores' customers were already curtailing their spending for hobby and entertainment -- or discretionary purchases -- by the inception of the class period and, as a result, Michaels Stores was experiencing the same adverse market conditions which were negatively impacting the Company's competitors; (3) The Company was not "in great shape," it did not have "considerable momentum" and was not proceeding according to guidance sponsored or provided by defendants; and (4) Notwithstanding defendants' efforts to create the materially false impression that the Company had achieved record results in the fiscal second quarter, the truth was that Michaels Stores was already suffering from the same adverse market conditions other retailers were experiencing. In all, during the class period, at the time that Michaels Stores was being adversely affected by the aforementioned factors, but prior to any disclosure to the market, certain of the defendants sold more than $15.3 million worth of their personally held Michaels Stores common stock while in possession of material adverse information. In fact, the CEO and President of the Company, Mr. Rouleau, sold over 125,000 shares of his privately held Company shares during the class period for over $5.8 million in proceeds. For more details, contact William Lerach by Phone: 800/449-4900 by E- mail: wsl@milberg.com or visit the firm's Website: http://www.milberg.com TRANSKARYOTIC THERAPIES: Brodsky & Smith Launches Securities Suit in MA ----------------------------------------------------------------------- The Law offices of Brodsky & Smith, LLC initiated a securities class action on behalf of shareholders who acquired Transkaryotic Therapies, Inc. (Nasdaq:TKTX) securities between January 4, 2001 through January 14, 2003, inclusive, in the United States District Court for the District of Massachusetts, against the Company and some of its officers and directors. The action 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 Evan J. Smith by Mail: Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by Phone: 877-LEGAL-90 or by E-mail: esmith@brodsky-smith.com TRANSKARYOTIC THERAPIES: Cauley Geller Commences Securities Suit in MA ---------------------------------------------------------------------- Cauley Geller Bowman Coates & Rudman, LLP initiated a securities class action in the United States District Court for the District of Massachusetts on behalf of purchasers of Transkaryotic Therapies Inc. (Nasdaq:TKTX) publicly traded securities during the period between January 3, 2001 and January 14, 2003, inclusive. The complaint alleges that the defendants violated 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. At a meeting held on January 14, 2003, by the United States Food and Drug Administration Endocrinologic and Metabolic Drugs Advisory Committee, the Committee voted 15-0 against recommendation of Replagal, Transkaryotic's drug for the treatment of Fabry disease, to the United States Food and Drug Administration (FDA). The Committee believed that Transkaryotic had not provided sufficient evidence for the approval of Replagal. Defendants knew by virtue of their ongoing communications with the FDA that the FDA considered the Company's data on the primary pain reduction endpoint of Transkaryotic's Phase II study to be uninterpretable, and further that the FDA considered that the Company's cardiac and renal data did not support approval. When shares of the Company's common stock resumed trading on January 15, 2003, the shares lost more than 25% of their value, falling to $6.49 per share. For more details, contact Jackie Addison, Heather Gann or Sue Null by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 by E-mail: info@cauleygeller.com or visit the firm's Website: http://www.cauleygeller.com TRANSKARYOTIC THERAPIES: Schiffrin & Barroway Files Investor Suit in MA ----------------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the District of Massachusetts on behalf of all purchasers of the common stock of Transkaryotic Therapies Inc., (Nasdaq:TKTX) from January 3, 2001 through January 14, 2003, inclusive. The complaint alleges that the defendants violated 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. At a meeting held on January 14, 2003, by the United States Food and Drug Administration Endocrinologic and Metabolic Drugs Advisory Committee, the Committee voted 15-0 against recommendation of Replagal, Transkaryotic's drug for the treatment of Fabry disease, to the United States Food and Drug Administration. The Committee believed that Transkaryotic had not provided sufficient evidence for the approval of Replagal. Defendants knew by virtue of their ongoing communications with the FDA that the FDA considered the Company's data on the primary pain reduction endpoint of Transkaryotic's Phase II study to be uninterpretable, and further that the FDA considered that the Company's cardiac and renal data did not support approval. When shares of the Company's common stock resumed trading on January 15, 2003, the shares lost more than 25% of their value, falling to $6.49 per share. For more details, contact Marc A. Topaz or Stuart L. Berman by Phone: 1-888-299-7706 (toll free) or 1-610-667-7706 by E-mail: info@sbclasslaw.com or visit the firm's Website: http://www.sbclasslaw.com VERITAS SOFTWARE: Glancy & Binkow Commences Securities Suit in N.D. CA ---------------------------------------------------------------------- Glancy & Binkow LLP initiated a securities class action in the United States District Court for the Northern District of California on behalf of all persons who purchased securities of Veritas Software Corporation (Nasdaq: VRTS) between January 24, 2001 and January 16, 2003, inclusive. The suit charges Veritas and certain of its executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements concerning Veritas' revenue and earnings caused Veritas' stock price to become artificially inflated, inflicting damages on investors. Veritas is a software storage company that provides data protection, storage management and disaster recovery software. The complaint alleges that on January 17, 2003, the Company announced the restatement of its 2000 and 2001 financial results, to eliminate $17 million in revenue and $7 million in net income previously reported for fourth quarter 2000, as a result of improper accounting for transactions with AOL Time Warner (AOL). According to the Company's press release, "(t)he transactions involved a $50 million software purchase by AOL and a $20 million advertising services purchase from AOL." Also on January 17, 2003, the Associated Press reported that the Securities and Exchange Commission is investigating the transactions between Veritas and AOL. For more details, contact Michael Goldberg by Mail: 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by Phone: (310) 201-9161 or (888) 773-9224 or by E-mail: info@glancylaw.com VERITAS SOFTWARE: Rabin & Peckel Commences Securities Suit in N.D. CA --------------------------------------------------------------------- Rabin & Peckel LLP initiated a securities class action in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased or otherwise acquired VERITAS Software Corporation securities (Nasdaq:VRTS) during the period from January 24, 2001 through January 16, 2003, both dates inclusive. The complaint names as defendants the Company and: (1) Gary L. Bloom, (2) Kenneth E. Lonchar, and (3) Paula A. Sallaberry The suit alleges that defendants violated the Securities Exchange Act of 1934 by making a series of materially false and misleading statements concerning the Company's financial results during the class period. In particular, it is alleged that the Company improperly accounted for transactions with AOL Time Warner whereby the Company's revenue and income was materially overstated during the class period. The transactions in question involve a $50 million software purchase by AOL Time Warner and a $20 million advertising purchase from AOL Time Warner. On January 17, 2003, the Company announced the restatement of its 2000, 2001, and 2002 financial results as a result of the improper accounting. The suit alleges that as a result of these false and misleading statements the price of VERITAS securities were artificially inflated throughout the class period causing plaintiff and the other members of the class to suffer damages. For more details, contact Eric J. Belfi or Sharon Lee by Phone: (800) 497-8076 or (212) 682-1818 by Fax: (212) 682-1892 or by E-mail: email@rabinlaw.com WESTAR ENERGY: Brodsky & Smith Commences Securities Lawsuit in KS Court ----------------------------------------------------------------------- The Law offices of Brodsky & Smith, LLC initiated a securities class action on behalf of shareholders who acquired Westar Energy, Inc. (NYSE:WR) securities between March 31, 2001 through December 26, 2002, inclusive, in the United States District Court for the District of Kansas, against the Company and some of its officers and directors. The action 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 Evan J. Smith by Mail: Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by Phone: 877-LEGAL-90 or by E-mail: esmith@brodsky-smith.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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