/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/030212.mbx C L A S S A C T I O N R E P O R T E R Wednesday, February 12, 2003, Vol. 5, No. 30 Headlines ATMEL CORPORATION: Denies Allegations in Securities Lawsuit in N.D. CA AUSTRALIA: Victoria To Give Psychiatric Nurses Back Wages AVANEX CORPORATION: NY Court Dismisses Officers, Directors From Lawsuit BALI ATTACK: Bombers Admit Targeting Australians Due To Close US Ties BAYER AG: Judge Considers Granting Certification to Baycol Injury Suits CATHOLIC CHURCH: Report Says NY Diocese Coddled Erring Catholic Priests CCA-TREATED WOOD: Briefing Set For Petition For Ban on CCA-Treated Wood COMPUTER FIRMS: CA Woman Sues Computer Firms Over Licensing Agreements CONCORD CAMERA: Plaintiffs Amend Fraud Suit To Include More Defendants FLORIDA: Blind Voters Sue Poll Supervisor Over Audio-Voting Equipment MARUBENI CORPORATION: Reaches Settlement In Alaska Price-Fixing Lawsuit MARYLAND: Governor Says He Won't Rush To Sign Racial Profiling Accord MARYLAND: Senate Delays Norris Confirmation, Wants Racial Accord Signed MASSACHUSETTS: Families Challenge "Race-Influenced" Assignment Policy PSS WORLD: Jury Trial in Consolidated Securities Suit Set October 2004 PSS WORLD: Employees Launch Lawsuit For Wage Act Violations in M.D. FL PSS WORLD: To Ask FL Court To Dismiss Amended Securities Fraud Lawsuit TEXAS: Inmate Suit Over Abortion Request Denial Will Continue UNITED PARCEL: Jewelry Store Seeks Certification For Suit Over Charges UNITED STATES: FDA Probes Mysterious Particles in Quarantined Blood WESTMINSTER CAPITAL: Agrees To Settle Shareholder Lawsuit in DE Court Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals * Online Teleconferences New Securities Fraud Cases AEGON NV: Faruqi & Faruqi Commences Securities Fraud Suit in S.D. NY AMERICREDIT CORPORATION: Wolf Haldenstein Lodges Securities Suit in TX CLEARONE COMMUNICATIONS: Faruqi & Faruqi Lodges Securities Suit in UT MCSI INC.: Faruqi & Faruqi Commences Securities Fraud Suit in S.D. NY MCSI INC.: Schiffrin & Barroway Lodges Securities Fraud Suit in S.D. OH MOTOROLA INC.: Zwerling Schachter Commences Securities Suit in N.D. CA TRANSKARYOTIC THERAPIES: Faruqi & Faruqi Launches Securities Suit in MA WESTAR ENERGY: Faruqi & Faruqi Commences Securities Lawsuit in KS Court ********* ATMEL CORPORATION: Denies Allegations in Securities Lawsuit in N.D. CA ---------------------------------------------------------------------- Atmel Corporation (NASDAQ:ATML) faces a securities class action filed in the United States District Court for the Northern District of California on behalf of purchasers of Atmel Corporation (NASDAQ:ATML) publicly traded securities during the period between January 20, 2000 and July 31, 2002. The suit, filed by Milberg Weiss Bershad Hynes & Lerach, charges Atmel 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 caused Atmel's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements, all the time concealing that Atmel was selling defective chips to its customers which would lead to product recalls, repairs and loss of customer relationships. While the Company's stock price was artificially inflated due to defendants' false statements, defendants sold more than $500 million in notes in a private placement offering. Atmel later registered these securities for resale via a Registration Statement, an earlier Class Action Reporter story states. The Company has not yet been served with the Milberg Weiss complaint, and therefore is unable to comment on the specific allegations of the complaint. George Perlegos, Atmel's President and Chief Executive Officer, said in a statement, "Based upon the information contained in the press release we believe the claims are meritless and intend to defend ourselves vigorously. The device, failures mentioned in the Milberg Weiss press release today have nothing to do with Atmel circuitry, but rather with a major third party vendor's molding compound material used by outside assemblers. The molding compound is utilized industry wide by most semiconductor companies. Furthermore, we continue to conduct business with Seagate, who we believe is a strong partner and customer of Atmel." AUSTRALIA: Victoria To Give Psychiatric Nurses Back Wages --------------------------------------------------------- The state of Victoria has agreed to pay psychiatric nurses across the state up to $15,000 in back pay, thereby settling a long-running class action brought by the health union on the nurses' behalf, the Australian Associated Press General News reports. The Health and Community Services Union (HACSU) initiated the action in 1997, when the Kennett government was in office. In order to provide additional psychiatric care, the Kennett government would contract out psychiatric services from stand-alone psychiatric hospitals into general hospitals and other community services. The claim, fought through the Australian Industrial Relations Commission. The Kennett government appealed decisions several times. The Bracks government then entered the picture, agreed to negotiate the claim and an agreement was signed last month. HACSU's assistant state secretary David Stephens offered some approximations, saying that about 1,000 members could receive between $5,000 and $15,000 within the next eight months. "As a result of mainstreaming the psychiatric nurses into general hospitals and community services groups, the nurses might be working for 21 different employers, and they ended up losing five and 10 percent of their wages plus certain allowances like parental leave," Mr. Stephens told the AAP. AVANEX CORPORATION: NY Court Dismisses Officers, Directors From Lawsuit ----------------------------------------------------------------------- The United States District Court for the Southern District of New York dismissed certain of Avanex Corporation's officers and directors as defendants in the consolidated securities class action pending against them, the Company and various underwriters in the Company's initial public offering (IPO). The consolidated amended complaint in the action generally alleges that various investment bank underwriters engaged in improper and undisclosed activities related to the allocation of shares in the Company's IPO. Plaintiffs have brought claims for violation of several provisions of the federal securities laws against those underwriters, and also against the Company and certain of its directors and officers, seeking unspecified damages on behalf of a purported class of purchasers of the Company's common stock between February 3, 2000, and December 6, 2000. Various plaintiffs have filed similar actions asserting virtually identical allegations against more than 40 investment banks and 300 other companies. All of these "IPO allocation" securities suits currently pending in the Southern District of New York have been assigned to Judge Shira A. Scheindlin for coordinated pretrial proceedings as "In re Initial Public Offering Securities Litigation." Defendants have filed motions to dismiss the actions. On October 9, 2002, the claims against the directors and officers were dismissed without prejudice. The Company believes that it has meritorious defenses to the claims against it. Nevertheless, an unfavorable result in litigation may result in substantial costs and may divert management's attention and resources, which could seriously harm the Company's business, financial condition, results of operations or cash flows. BALI ATTACK: Bombers Admit Targeting Australians Due To Close US Ties --------------------------------------------------------------------- Confessions from the mastermind of the Bali, Indonesia bombings reveal that Australians were targeted because of Canberra's close ties to the United States. Australian Broadcasting Corporation's Four Corners current affairs show said it obtained transcripts of confessions made to police by the alleged mastermind of the bombings, Imam Samudra, and an accomplice, Muklas. These confessions are scheduled for discussion on the program. In his confession, Muklas allegedly said he was grateful the blasts killed foreigners from countries allied to America. Like many Indonesians, Muklas uses only one name. "We planned the explosion in Bali because there are many places in Bali that are visited by tourists from these countries, such as the United States, England, France, Australia, Israel and other countries which behave despotically towards Muslims," Muklas was quoted as saying. Among 13 reasons Samudra gave for the bombings was Australia's involvement in East Timor's transition to independence from Indonesia in 1999. A total of 29 suspects have been arrested in connection with the Bali bombings. Nineteen of this group are considered directly involved. Police say at least three of the suspects have been identified as being members of Jemaah Islamiyah, a pan-Asian network of Islamic extremists with links to al-Qaida. It is believed, according to Australia's Federal Police chief, Mick Keelty, that several key Bali bomb blast suspects remain at large and could strike again, such as the suspected bomb detonator Dulamatin, Dr. Azahari, a bomb expert and Noor din Mohd Top, a Malaysian bomb expert. Families of five Australians killed in the Bali bombings and another man injured in the blasts earlier said they will be joining the US class action which is seeking trillions of dollars from alleged financial backers of the al-Qaida terror network, the Associated Press Newswires reports. The US class action has been brought on behalf of families of some of the victims of the September 11 attacks. BAYER AG: Judge Considers Granting Certification to Baycol Injury Suits ----------------------------------------------------------------------- A federal judge in Minneapolis is considering the critical issue of whether several thousand lawsuits against German drug-maker Bayer AG should be certified as a class action, Dow Jones International News reports. US District Court Judge Michael Davis took the matter under advisement after a recent two-day hearing. Although Judge Davis has not said when he will rule, it is not expected soon, since the issues are complex. The lawsuits focus on the cholesterol-lowering drug Baycol, which was taken off the market in August 2001, after at least 100 deaths were linked to the drug. About 7,800 lawsuits have been filed, 805 of them in Minnesota. If the lawsuits are certified as a class action, a trial could take place as early as June in US District Court in Minneapolis. However, if Judge Davis rules against certification, individuals would have to decide whether to proceed on their own with the lawsuits. The maker of Baycol, Bayer AG, argued against granting the lawsuits class status. "The problem of getting into a big class action is that you end up with the tail wagging the dog. You have a class made up (largely) of people who have no legitimate claim at all and who benefited from our medicine," said Philip Beck, Bayer's lead counsel. In the United States, 900,000 people were taking the drug before it was recalled. The drug was associated with rhabdomyolysis, a condition in which muscle tissue breaks down and passes into the blood stream causing kidney failure and eventually death, an earlier Class Action Reporter story states. CATHOLIC CHURCH: Report Says NY Diocese Coddled Erring Catholic Priests ----------------------------------------------------------------------- The Suffolk County, New York District Attorney's office released a special grand jury report stating that the Diocese of Rockville Centre repeatedly protected priests accused of sexual abuse by transferring them to other parishes, the Associated Press reports. The report revealed that altar boys and cheerleaders were sexually abused, while some of them were given alcohol and shown sexual videotapes in rectory bedrooms. "Professional treatment recommendations were ignored and dangerous priests allowed to minister to children. Diocesan policy was to expend as little financial capital as possible to assist victims but to be well prepared for the possibility of enormous financial and legal liability," according to the report. "Abusive priests were transferred from parish to parish and between dioceses. Abusive priests were protected under the guise of confidentiality, their histories mired in secrecy," the report continued. The report describes one case where the priest was found to be in possession of a pornographic video involving a fifteen-year-old boy. He was never prosecuted. A priest who helped a female abuse victim was prevented from receiving another assignment. The diocese also reportedly failed to screen candidates for priesthood thoroughly, the Associated Press reports. The special grand jury interviewed 97 witnesses over a period of eight months to come up with the report. The grand jury was unable to file indictments against the diocese in suburban Long Island because the statute of limitations has expired. Karen Montalbano, a spokeswoman for the diocese, told AP the diocese has not seen the report and would comment later Monday. CCA-TREATED WOOD: Briefing Set For Petition For Ban on CCA-Treated Wood ----------------------------------------------------------------------- The United States Consumer Product Safety Commission (CPSC) is holding a commission briefing on March 12, 2003 to consider the petition to ban the use of chromated copper arsenate (CCA) pressure-treated wood in playground equipment. The CPSC staff has recommended that the commissioners defer action on the petition, pending finalization of the agreement between CCA manufacturers and the Environmental Protection Agency (EPA) to phase out CCA treatment of wood for most consumer uses by the end of 2003. The EPA expects to finalize this agreement in the near future and staff plans to assess its impact. The EPA is conducting a study of the risks, which may be associated with CCA-treated wood. EPA's report is expected later this year. In addition, the EPA and CPSC staffs plan to conduct a study to determine effective measures of reducing the amount of arsenic released from CCA treated wood. In the report submitted to the Commissioners, CPSC scientists find that some children may face an increased risk of developing lung or bladder cancer over their lifetime from playing on playground equipment made from CCA pressure-treated wood. This risk is in addition to the risk of getting cancer due to other factors over one's lifetime. Not every exposed individual will get cancer at sometime during his/her lifetime. There are many risk factors that contribute to a person's risk for developing cancer over their lifetime such as environment, genetics, diet, and behaviors such as smoking. The staff maintains that an individual child's risk from arsenic in CCA-treated playground equipment will vary depending on many factors. Those include the amount of arsenic released from the CCA-treated wood, the amount of arsenic picked up on the hands, the number of days and years the child plays on the wood, and the amount of arsenic transferred to the mouth by hand- to-mouth activity. The staff considered these types of exposures in calculating the increased lifetime risk of developing lung or bladder cancer. CPSC staff states this increased risk to children is primarily due to exposure to arsenic residue on children's hands followed by hand-to- mouth contact. The report says transfer of the arsenic from the hand to the mouth can occur during and after playing on pressure-treated wood playground equipment. To minimize the risk of exposure to arsenic from CCA-treated playground equipment, the staff recommends that parents and caregivers thoroughly wash children's hands with soap and water immediately after playing on CCA pressure-treated wood playground equipment. In addition, the staff recommends that children not eat while on CCA-treated wood playground equipment. Arsenic occurs naturally in the air, soil, water, and in some foods. While exposure to arsenic from background sources could be much higher than the exposure from playgrounds for some children, exposure to arsenic from CCA-treated playgrounds could be a significant source of arsenic for other children on those days that include a playground visit. Several playground companies have already begun to use wood treated with arsenic-free preservatives. In addition, playground structures can be made of other materials that don't contain arsenic, such as naturally rot-resistant wood (redwood and cedar), metal, plastic, and composite materials. All of these materials could be used for new construction. For more information, contact the CPSC by Phone: 800-638-CPSC or visit the Website: http://cpsc.gov/whatsnew.html COMPUTER FIRMS: CA Woman Sues Computer Firms Over Licensing Agreements ---------------------------------------------------------------------- Several software firms and retailers face a consumer class action filed in Marin County Superior Court in California alleging they "concocted a scheme" to mislead consumers by requiring them to consent to software licensing agreements they haven't read, Techzonez reports. The suit was filed on behalf of all Californians who've bought software including Norton Antivirus 2002, Norton Systemworks and Windows XP Upgrade, and includes as defendants Microsoft Corporation, Symantec, CompUSA, Best Buy and other unnamed retailers. California resident Cathy Baker filed the suit, claiming that the defendants don't allow people to read "shrink wrap" licenses, agreements printed inside the box or incorporated into the software itself, before they buy a product. "Defendants acted in concert and have concocted a scheme to sell consumers in the state of California software licenses in retail stores without allowing them to review the terms and conditions of such software licenses prior to sale," Ira Rothken, Ms. Baker's lawyer, wrote in the complaint, Techzonez reports. The suit further alleged that people who don't accept the terms of the agreement cannot return software to the stores. Ms. Baker allegedly tried to return Microsoft and Symantec software to CompUSA after refusing to consent to the licensing terms, but the Company refused to take the software back, saying the packages had been opened, according to the suit. Representatives from Symantec, Microsoft and Best Buy did not immediately respond to requests for comment, Techzonez reports. CompUSA executives could not be reached for comment. CONCORD CAMERA: Plaintiffs Amend Fraud Suit To Include More Defendants ---------------------------------------------------------------------- Plaintiffs in the securities class action filed against Concord Camera Corporation filed an amended suit in the United States District Court for the Southern District of Florida, adding certain of the Company's current and former directors as defendants. The suit was initially commenced in July 2002 against the Company and certain of its officers by individuals purporting to be shareholders of the Company, on behalf of all persons who purchased the Company's Common Stock: (1) issued pursuant to the Company's September 26, 2000 secondary offering; or (2) during the period from September 26, 2000 through June 22, 2001, inclusive The amended complaint asserts, among other things, that the Company made untrue statements of material fact and omitted to state material facts necessary to make statements made not misleading in the Registration Statement and Prospectus issued in connection with the Secondary Offering, in periodic reports it filed with the Securities and Exchange Commission and in press releases it made to the public regarding its operations and financial results. The allegations are centered around claims that: (i) the Company failed to disclose that the transaction with then customer, KB Gear Interactive, Inc., was a highly risky transaction, (ii) that throughout the class period the Company failed to disclose that a large portion of its accounts receivable was represented by a delinquent and uncollectible balance due from then customer, KB Gear; and (iii) that such failures artificially inflated the price of the Common Stock The amended complaint seeks unspecified damages, interest, attorneys' fees, costs of suit and unspecified other and further relief from the court. The Company intends to vigorously defend the lawsuit. The lawsuit is in the earliest stage and discovery has not yet commenced. Although the Company believes this lawsuit is without merit, its outcome cannot be predicted, and if adversely determined, the ultimate liability of the Company, which could be material, cannot be ascertained. FLORIDA: Blind Voters Sue Poll Supervisor Over Audio-Voting Equipment --------------------------------------------------------------------- Palm Beach, Florida's elections supervisor faces a lawsuit filed by a group of blind voters, alleging that they were not provided equipment that would have let them vote by secret ballot, the Herald Tribunre reports. Supervisor Theresa Lepore allegedly brought audio equipment that will let blind and visually impaired voters vote without assistance to the Center for Independent Living Options for demonstrations before the 2002 primary and general elections. However, during the elections, the machines were not made available to the voters or poll workers did not know how to use them. The suit asks that the audio equipment be made available and asks that poll workers be trained on how to use the new technology. Ms. Lepore told the Herald Tribune the machines were in all precincts for the primary election and poll workers were taught how to use the new technology, including the audio components. "But in their defense, they had an awful lot to learn the first time out," she said. Ms. LePore continued elections officials decided to keep the audio machines at the elections headquarters because the ballot was long and they feared they would hold up long lines of voters. She said the audio machines are not required under state law until 2004, and federal law won't require them until 2006, the Herald Tribune reports. The audio-voting machines were part of the $14 million voting technology Palm Beach County purchased last year after the botched 2000 election. MARUBENI CORPORATION: Reaches Settlement In Alaska Price-Fixing Lawsuit ----------------------------------------------------------------------- Japanese importer, Marubeni Corporation, has reached a $25 million settlement with the approximately 4,500 plaintiff salmon fishermen of Bristol Bay, Alaska, the Associated Press Newswires reports. "The settlement agreement is not an admission or suggestion that the Marubeni Group defendants have committed any wrongdoing," the company said in a news release. Meanwhile, opening arguments continued for the other defendants in the $1 billion lawsuit, filed in 1995, in Superior Court, in Anchorage. The lawsuit alleges that Seattle-based processors and Japanese importers conspired to fix prices from 1989 to 1995. The lawsuit further alleges that the wrongful conduct took place in Bristol Bay, the world's largest sockeye salmon fishery. Attorneys for the fishermen said in their opening statements last week that defendant processors and importers conspired to fix the prices the fishermen could get from them for their salmon, thereby enlarging the profits defendants otherwise would have received in the shrinking markets, in the late 1980s. The defense, led by attorneys for two of the major processors, Trident Seafoods and Wards Cove Packing Co., said there was no conspiracy to lower the prices the fishermen could get for their salmon. They stated world salmon market conditions were the sole cause of reducing prices fishermen could get for their catch. One of defendants' opening statements was made by Michael Kipling, lead attorney for defendant Nichiro Corp. and its subsidiary Peter Pan Seafoods, a processor. Mr. Kipling pointed out that exchanges between a parent and its subsidiary might seem on their face to be conspiracy, as when Nichiro "gives advice to Peter Pan about where the market is headed." However, because they are related companies, such a communication is legal and does not constitute conspiracy. MARYLAND: Governor Says He Won't Rush To Sign Racial Profiling Accord --------------------------------------------------------------------- Governor Robert Ehrlich told Legislative Black Caucus members at a recent meeting that he had with them, that he does not intend to rush into signing the agreement settling the racial profiling class action brought by a group of motorists against the state police, Associated Press Newswires reports. While the governor and State Police Superintendent Edward Norris acknowledged that the agreement is a top priority, they also spoke of flaws that might be found in the documents negotiated during Governor Parris Glendening's administration. Governor Ehrlich noted this was the moment to make sure the agreement was done right the first time. Mr. Norris said, "The only thing we are asking is a chance to look at the agreement and make it our own." Mr. Norris also said he agreed with the goal of making sure that state police do not stop and search minorities more often than they stop other drivers. He did mention one improvement he thought might be made - providing more protection against being stopped for what is sometimes referred to as "driving while black." Caucus members were not happy with this state of affairs. "It's time to bring this to closure," said Delegate Obie Patterson. Mr. Patterson is a Prince George's county Democrat. He is chairman of the Legislative Black Caucus. "These people have suffered long enough. We want it resolved immediately, and we think it should be," said Mr. Patterson. However, Sen. Lisa Gladden, D-Baltimore, said she was less satisfied now, with the positions taken by the Governor and Superintendent Norris, than she was when she first went into the meeting with them. "I think they are slow walking this (issue). I'm angry," Senator Gladden said. The racial profiling lawsuit dates back to 1992, when Washington defense lawyer Robert Wilkins refused to let a state trooper search his car after being stopped. The American Civil Liberties Union (ACLU) intervened and filed a lawsuit on behalf of dozens of drivers who joined Mr. Wilkins in the class action. Years later, just days before Governor Glendening left office this year, the ACLU and former State Police Superintendent agreed to a settlement. However, at the request of incoming Governor Ehrlich, the Board of Public Works, the body authorized to sign the settlement, delayed the vote. Some of the terms of the settlement, among other things, were: (1) Individual plaintiffs would not get any money from the settlement, but the state would pay $325,000 in attorney fees; (2) State police would put more cameras in cars to record traffic stops; (3) A system to track the race of stopped motorists would be developed; (4) A special telephone number for complaints would be set up; and (5) A police-citizen panel would be established to monitor reports of racial profiling. Five members of the panel would be from the ACLU. Governor Ehrlich said that he would have "real problems with that (five panel members being from the ACLU), big time." William Mertens, a Washington lawyer, who has worked on the case since 1996, and helped negotiate the agreement, said the ACLU would not be appointing any members to the review panel. Among the total of 15 members on the panel, the NAACP would appoint five and five would be police representatives. Mr. Norris noted that he did not want to sign an agreement and then have to revise it later. He liked the idea of waiting to sign it, therefore, since some parts of the agreement would be obsolete within six months when state police would be getting new equipment. Also, he said a pamphlet intended for motorists when stopped by the police should contain information not even mentioned in the agreement. Senator Gladden referred to the campaign by Mr. Ehrlich and Lt. Governor Michael Steele to curry favor with black voters. She said, "It is important to the African-American community. If you want to support the African-American community, sign it now." MARYLAND: Senate Delays Norris Confirmation, Wants Racial Accord Signed ----------------------------------------------------------------------- Maryland's Senate has held up the vote on confirmation of the new state police superintendent Edward Norris, in an attempt, led by the Legislative Black Caucus, to pressure both Mr. Norris and Governor Robert Ehrlich to sign the racial profiling class action settlement, the Associated Press Newswires reports. The remarks by both Mr. Norris and the Governor, in their criticisms of the settlement's terms, as well as the strong negative feelings expressed about a settlement provision allowing the American Civil Liberties Union (ACLU) membership on a monitoring panel, gave senators the impression of a long delay while parts of the settlement were rewritten. The racial-profiling lawsuit dates back to 1992, when Washington defense lawyer Robert L. Wilkins refused to consent to a search of his car, after being stopped by a state trooper in Cumberland, Maryland. Dozens of motorists joined Mr. Wilkins in a class action, filed by the ACLU against the state. Former State Police Superintendent David Mitchell and the ACLU agreed to a settlement just days before Governor Parris Glendening left office. The Board of Public Works was ready to ratify the agreement before Governor Glendening left office, but yielded to the new Governor's request that the vote be postponed until after Governor- Elect Ehrlich took office. Members of the Legislative Black Caucus have met with Governor Ehrlich. They have made ratification of the agreement a top priority, telling the governor there is widespread belief among black residents that they are targeted for searches and stops just because, as the expression goes, they are driving "while black." Asked more recently when he expects to sign the agreement, Governor Ehrlich said he just wanted the opportunity to look it over to make sure it is acceptable, because he and Superintendent Norris are going to have to live with it. However, such an examination, said the Governor will be "more a function of days than weeks." MASSACHUSETTS: Families Challenge "Race-Influenced" Assignment Policy --------------------------------------------------------------------- The city of Boston, Massachusetts faces a legal challenge to its three- year-old student assignment policy, which reserves half the seats in the district's elementary and middle schools for children who live within the schools' "walk zones," and half for the children from other neighborhoods, the Associated Press reports. Ten families filed a complaint in Boston Federal Court, disputing the policy, alleging that it uses race as a consideration for admitting children to school. "They have to push children out of the way so they can bring in children of other races," plaintiffs' attorney Michael Williams said in opening statements Monday, AP reports. Federal Judge W. Arthur Garrity, Jr. issued an order in 1974, busing students out of their neighborhoods to racially integrate schools in others. The 1974 desegregation order was in response to a lawsuit from black parents, who claimed the city's neighborhood school system had created two separate systems, one for whites and an inferior one for blacks. The controversial order sparked violent racial conflict, particularly in the mostly white South Boston and Charlestown sections. Protesters threw stones at busloads of children, there were riots at South Boston High School, and a bomb destroyed the local NAACP office, AP reports. The National Guard was called up to keep the peace and the judge was under 24-hour guard by federal marshals for three and a half years after his ruling. Judge Garrity died in 1999. The Boston School Committee dropped race as a factor in 1999, reversing Judge Garrity's order. The current policy is the city's first student- assignment policy in 25 years that does not use students' race to determine where they go to school. However, the plaintiffs say otherwise. School officials say the current system is race-neutral, incorporating parents' desire to send their children to nearby schools and their wish to choose from schools in other parts of the city. "In this case, we will show that this plan is about choice - that it is not about racial balancing," said Frances Cohen, an attorney for the Boston School Committee, said during her opening arguments, AP reports. MASSACHUSETTS: Affirmative Action Program Stopped Due To Fear of Suits ---------------------------------------------------------------------- Boston Mayor Thomas M. Menino threw out the 25-year-old affirmative action program named Minority and Women Business Enterprise program, over fears that it may not be able to withstand a court challenge, the Associated Press reports. Mayor Menion issued an executive order last week recalling the program, which gave preferences to minority and women-owned businesses in awarding city contracts, and giving contracting preferences to "small and local-owned businesses." "It's unfortunate that in cities across the country programs similar to Boston's MWBE program are being struck down," Mayor Menino said in a statement released Friday. "But I am proud that our mission of encouraging business development will continue through our new Small and Local Enterprise Program." However, black political leaders criticized the move, calling it a surprise. "It's premature for the administration to abandon the city's commitment to assuring that all people can participate on a level playing field - particularly in light of the horrendous disparities in prime contracting based on race and gender," City Councilor Charles C. Yancey told the Boston Herald. A private city-funded study last month appears to reveal black and Asian contractors and women-owned businesses are suffering discrimination in the awarding of city contracts, the Associated Press reports. The study showed that blacks were prime contractors on 1.3 percent of $332.2 million in city contracts awarded in 1999, 2000 and 2001, while they represent 10 percent of available firms, the study said. PSS WORLD: Jury Trial in Consolidated Securities Suit Set October 2004 ---------------------------------------------------------------------- Jury trial in the consolidated securities class action filed against PSS World Medical, Inc. is set to commence on October 18,2004 in the United States District Court for the Middle District of Florida. The suit names the Company along with certain present and former directors and officers as defendants and was filed on behalf of persons who purchased or acquired the Company's common stock at various times during the period between October 26, 1999 and October 3, 2000. The amended complaint alleges, among other things, violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and seeks unspecified damages. The plaintiffs allege that the Company issued false and misleading statements and failed to disclose material facts concerning, among other things, the Company's financial condition. The plaintiffs further allege that because of the issuance of false and misleading statements and/or failure to disclose material facts, the price of PSS World Medical, Inc. common stock was artificially inflated during the class period. By order of the court dated November 14, 2002, plaintiff's motion for class certification was granted. On December 10, 2002, the court entered an order approving plaintiff's method of notifying class members that a class has been certified and further set a schedule of dates for such notice. On December 10, 2002, the court also entered an order setting forth a schedule of dates for pre-trial procedures and trial. Pursuant to that order, a jury trial in the case is scheduled for the trial term commencing October 18, 2004. The Company believes that the allegations contained in the suit are without merit and intends to defend vigorously against the claims. There can be no assurance that this litigation will be ultimately resolved on terms that are favorable to the Company. PSS WORLD: Employees Launch Lawsuit For Wage Act Violations in M.D. FL ---------------------------------------------------------------------- PSS World Medical, Inc. faces a class action brought by three former and present employees of the Company in the United States District Court for the Middle District of Florida, Jacksonville Division. The suit alleges that the Company wrongfully classifies its purchasers, operations leader trainees, and accounts receivable representatives as exempt from the overtime requirements imposed by the Fair Labor Standards Act and the California Wage Orders. The plaintiffs seek court approval to proceed as a collective action under the Fair Labor Standards Act, a representative action under California's Unfair Competition Act, and/or a class action on behalf of all persons in the United States who have occupied any one of the three positions within the pertinent limitations period. The Company opposed this motion. It is unknown whether the court will tentatively approve a collective action and allow discovery on the issue of who is eligible to participate in the collective action. In addition, two of the three named plaintiffs bring individual claims for gender discrimination and retaliation under Title VII of the Civil Rights Act of 1964 and the Equal Pay Act of 1963. The Company is vigorously defending against the claims and is working with human resource personnel to collect personnel and payroll information necessary to determine: (1) the employees who are potentially eligible to participate in the suit and (2) the extent of overtime liability, if any. There can be no assurance that this litigation will be ultimately resolved on terms that are favorable to the Company. PSS WORLD: To Ask FL Court To Dismiss Amended Securities Fraud Lawsuit ---------------------------------------------------------------------- PSS World Medical, Inc. intends to ask the United States District Court for the Middle District of Florida, Jacksonville Division to dismiss the third amended securities class action pending against it and certain of its current officers and directors. The plaintiff alleges, for himself and for a purported class of similarly situated stockholders who allegedly purchased the Company's stock between December 23, 1997 and May 8, 1998 that the defendants engaged in violations of certain provisions of the Exchange Act, and Rule 10b-5 promulgated thereunder. The allegations are based upon a decline in the Company's stock price, following a Company announcement in May 1998 regarding the Gulf South Merger, which resulted in earnings below analyst's expectations. The Company filed a motion to dismiss the first amended complaint on January 25, 1999. The court granted that motion without prejudice by order dated February 9, 2000. Plaintiffs filed their second amended complaint on March 15, 2000, and the Company filed a motion to dismiss the second amended complaint on May 1, 2000. By order dated December 18, 2002, the court granted the motion to dismiss the second amended complaint with prejudice with respect to the Section 10(b) claims. The order granted the motion to dismiss the second amended complaint without prejudice as to the Section 14(a) and 20(a) claims and gave the plaintiffs leave to file a third amended complaint. The plaintiffs filed their third amended complaint on January 17, 2003 alleging claims under Sections 14(a) and 20(a) of the Exchange Act on behalf of a putative class of all persons who were shareholders of the Company as of March 26, 1998. There can be no assurance that this litigation will be ultimately resolved on terms that are favorable to the Company. TEXAS: Inmate Suit Over Abortion Request Denial Will Continue ------------------------------------------------------------- A pregnant Texas inmate who filed a federal class action against the county for repeatedly denying her request for an abortion, and who was transferred to the state prison the next day, will continue her legal battle with Harris County Jail, in Texas, the Houston Chronicle reports. Annette Lamoreaux, an American Civil Liberties Union (ACLU) attorney, who filed the class action on the inmate's behalf, said she intends to proceed with the lawsuit even though the woman was transferred. As a result of the transfer, said Ms. Lamoreaux, the county will probably file a motion to dismiss the class action, and will probably cite as a reason that the woman is no longer in its custody. Ms. Lamoreaux said the lawsuit could survive this challenge, however, because, "The nature of a class action is that it applies to others similarly situated and, in this case, (that) is anyone ever in county custody who seeks an abortion now or in the future." The unidentified inmate was taken into custody last month after she violated the terms of her probation and must now serve two years in state prison. The inmate made many requests for an abortion soon after she was taken into custody, but county officials told her she would need a court order. The ACLU says such a requirement violates the inmate's constitutional rights. As the inmate, now nine weeks pregnant, renews her efforts to get an abortion, still another constitutional issue comes to the fore. Larry Fitzgerald, a Texas Department of Criminal Justice spokesman, agreed with Ms. Lamoreaux that the inmate does not need a court order to get the procedure done. She must, however, pay for the abortion as well as transportation fees and all costs for the guards who must accompany her. "Now, if an inmate carries a baby to term, we would take care of the expenses," Mr. Fitzgerald said. Ms. Lamoreaux said her office is now investigating whether the state's policy of having two extremely different ways of handling the costs of abortion or carrying the baby to term passes constitutional scrutiny, or a discrimination issue exists. UNITED PARCEL: Jewelry Store Seeks Certification For Suit Over Charges ---------------------------------------------------------------------- A Mississippi jewelry store, Stein Jewelry Co. of Greenwood, has filed a lawsuit seeking class action status, in Fulton County Superior Court, claiming the United Parcel Service (UPS) unfairly inflates charges for incorrectly addressed packages, The Atlanta Journal-Constitution reports. The lawsuit further alleges that UPS drivers are told to levy incorrect-address charges even for minor typographical errors on packages that are still deliverable. UPS charges $10 for packages with incorrect addresses. "They call this revenue recovery, but there really is no revenue lost," said Brian Herrington, a lawyer representing Stein Jewelry Co. "This is a profit-making deal for UPS." UPS denies the allegations, spokeswoman Vanessa Smith said. Ms. Smith said packages with address errors require extra time for drivers to look up the correct addresses. UPS also forwards the correct address back to the sender. She said the company's policies are clearly spelled out in contracts. UNITED STATES: FDA Probes Mysterious Particles in Quarantined Blood -------------------------------------------------------------------- The United States Food and Drug Administration (FDA) is investigating whether blood quarantined because it contained unidentified white particles may have played a role in health problems suffered by half a dozen people, including one who died after recent transfusions, the Associated Press reports. The contamination was discovered January 30, when the American Red Cross asked hospitals in Georgia and northern Florida to stop using recently collected blood because some contained white particles visible through the bags. The quarantine eventually extended from Illinois and Missouri to Kentucky and Tennessee. The blood allegedly had unusual white clumps in it, but the FDA said it had no evidence yet linking the blood mystery to any harm. The person who died, for instance, was already severely ill long before receiving a transfusion, and some of the other reports included allergic reactions and infections that are fairly routine transfusion side effects, the Associated Press reports. Preliminary testing suggested that some of the particles might just be normal blood cells or other natural components that for some reason clumped up. However, even if initial reports say they're just clumps of blood cells called platelets, such excess clumping could be risky to certain patients, Dr. Jesse Goodman, FDA chief of biological products, said. The clumping could lead to too much clotting. Also, scientists would be concerned about what prompted a sudden change in blood quality as well, Dr. Goodman explained. "We want to have blood as pure a product as possible," he told AP. "We are certainly hoping this is not a significant safety problem, but we are also acting as though it could be." As a precaution, the FDA urged blood banks Friday to more closely visually inspect bags of donated blood, as it continues its investigation. Government testing so far suggests the particles are not infectious. The investigation is focusing mostly on the bags storing the blood in question, because the initially quarantined pints had been stored in a particular type of bag made by Baxter International Inc, AP reports. The FDA also asked all blood banks to add an extra step to their normal safety tests: Lay each blood bag on a flat counter for 10 minutes and then see if particles are visible to the naked eye. If there are, quarantine that blood and immediately call or e-mail FDA blood officials, the agency ordered. WESTMINSTER CAPITAL: Agrees To Settle Shareholder Lawsuit in DE Court --------------------------------------------------------------------- Westminster Capital, Inc. reached a settlement with plaintiffs in the securities class action filed against it and each member of the its board of directors in the Delaware Court of Chancery for New Castle County, by a shareholder of the Corporation. The lawsuit was filed in response to the Company's tender offer to purchase any and all outstanding shares of its common stock at a price of $2.80 per share. The plaintiff brought this action individually and as a purported class action on behalf of all shareholders of the Corporation. The complaint, as subsequently amended, alleges that the Company and the members of its board of directors have breached their fiduciary duties to the Company's shareholders. Specifically the complaint alleges: (1) Westminster shareholders were being denied the opportunity to make a fully informed judgment on a major corporate transaction in which they had to select among their options to hold or tender their stock; (2) the tender offer was structured in such a way that it was coercive; and (3) the tender offer benefited the fiduciaries at the expense of Westminster's public shareholders. The complaint sought, among other things, preliminary and permanent injunctive relief prohibiting the Corporation from proceeding and implementing the tender offer and, if the tender offer was completed, an order rescinding the tender offer and awarding damages to the purported class. On May 8, 2002, the Court denied the motion for expedited proceedings filed by the plaintiff and refused to schedule a hearing on the plaintiff's motion for a preliminary injunction, which sought to enjoin the Company's tender offer. The litigation is still pending. The Company and the other defendants have reached a proposed settlement with the litigants in this matter, which has been submitted to the court for approval. A hearing on the proposed settlement has been set for March 7, 2003. Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals ------------------------------------------------- February 13-14, 2003 PRODUCTS LIABILITY American Law Institute Coral Gables, Florida Contact: 215-243-1614; 800-CLE-NEWS x1614 February 14, 2003 THE SCIENCE OF MOLD Bridgeport Continuing Education Sacramento Contact: 818-505-1490 February 19, 2003 INSURANCE COVERAGE 2003: CLAIM TRENDS AND LITIGATION Practising Law Institute PLI New York Center Contact: 800-260-4PLI; info@pli.edu. February 19, 2003 ASBESTOS PREMISES LIABILITY CONFERENCE Mealey Publications The Marriott Hotel, Philadelphia Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com February 20-21, 2003 ASBESTOS LITIGATION 101 CONFERENCE Mealey Publications The Marriott Hotel, Philadelphia Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com March 3-4, 2003 TOXIC MOLD LITIGATION Marriott East Side Hotel, New York Contact: 1-888-224-2480; http://www.americanconference.com March 3-4, 2003 PRACTICAL TRAINING FOR THE CLAIMS PROFESSIONAL Mealey Publications The Westin Hotel, Stamford Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com March 6-7, 2003 VACCINE LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton, Boston Commons, Boston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com March 17-18, 2003 FEN-PHEN LITIGATION CONFERENCE Mealey Publications The Fairmont Hotel, Dallas Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com March 20-21, 2003 FUNDAMENTALS OF INSURANCE COVERAGE LAW Mealey Publications The Westin Hotel, Philadelphia Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com March 23-24, 2003 CALIFORNIA ENVIRONMENTAL UPDATE Bridgeport Continuing Education Long Beach Contact: 818-505-1490 March 27-28, 2003 ASBESTOS LITIGATION Hotel Nikko, San Francisco Contact: 1-888-224-2480; http://www.americanconference.com April 2-5, 2003 INSURANCE INSOLVENCY & REINSURANCE ROUNDTABLE Mealey Publications The Fairmont Scottsdale Princess, AZ Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com April 4-5, 2003 TOXIC TORT IN CALIFORNIA Bridgeport Continuing Education San Francisco Contact: 818-505-1490 April 4-5, 2003 TOXIC TORT AND ENVIRONMENTAL IN CALIFORNIA Bridgeport Continuing Education Contact: 818-505-1490 April 8, 2003 SILICA LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel Boston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com April 10-11, 2003 HANDLING CONSTRUCTION RISKS 2003: ALLOCATE NOW OR LITIGATE LATER Practising Law Institute PLI New York Center Contact: 800-260-4PLI; info@pli.edu. April 15, 2003 WALL STREET FORUM: ASBESTOS Mealey Publications The Ritz-Carlton Hotel Battery Park Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com April 28-29, 2003 EPHEDRA LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Huntington Hotel & Spa, Pasadena, CA Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com April 28-29, 2003 BAD FAITH AND PUNITIVE DAMAGES Hotel Nikko, San Francisco Contact: 1-888-224-2480; http://www.americanconference.com May 1-2, 2003 ASBESTOS LITIGATION 2003 Andrews Publication New Orleans Grande Hotel, New Orleans Contact: seminar@andrewspub.com May 14-15, 2003 CALIFORNIA ENVIRONMENTAL UPDATE Bridgeport Continuing Education San Jose Contact: 818-505-1490 June 2-3, 2003 BAYCOL LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel Amelia Island, FL Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com June 2-3, 2003 ASBESTOS BANKRUPTCY CONFERENCE Mealey Publications The Westin Hotel Philadelphia Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com June 9, 2003 ANTI-SLAPP STATUTE CONFERENCE Mealey Publications The Ritz-Carlton Huntington Hotel & Spa Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com June 9, 2003 CCA-TREATED WOOD LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel Amelia Island, FL Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com June 12-13, 2003 ENVIRONMENTAL INSURANCE: PAST, PRESENT AND FUTURE American Law Institute Boston Contact: 215-243-1614; 800-CLE-NEWS x1614 June 16-17, 2003 LITIGATING EMPLOYMENT DISCRIMINATION & SEXUAL HARASSMENT CLAIMS Practising Law Institute PLI New York Center Contact: 800-260-4PLI; info@pli.edu. June 16-17, 2003 ASBESTOS LITIGATION 101 CONFERENCE Mealey Publications The Fairmont Hotel, Dallas Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 8-9, 2003 CORPORATE GOVERNANCE: LIABILITY OF CORPORATE OFFICERS AND DIRECTORS Mealey Publications The Ritz-Carlton Hotel Amelia Island, FL Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com TBA Water Contamination Litigation Conference Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com TBA Fair Labor Standards Conference Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com * Online Teleconferences ------------------------ February 06-28, 2003 ETHICAL CONSIDERATIONS IN MASS TORT AND CLASS ACTION LITIGATION IN TEXAS CLE Online Seminar Contact: 512-778-5665; info@cleonline.com February 06-28, 2003 NBI PRESENTS "LITIGATING THE CLASS ACTION LAWSUIT IN FLORIDA CLE Online Seminar Contact: 512-778-5665; info@cleonline.com May 14, 2003 CLASS ACTION BASICS ABA-CLE Contact: 800-285-2221; abacle@abanet.org PAXIL LITIGATION LawCommerce.Com Contact: customerservice@lawcommerce.com INTRODUCTION TO CLASS ACTIONS AND LARGE RECOVERIES Big Class Action Contact: seminars@bigclassaction.com RECOVERIES Big Class Action Contact: seminars@bigclassaction.com SHOULD I FILE A CLASS ACTION? LawCommerce.Com Contact: customerservice@lawcommerce.com THE EFFECTS OF ASBESTOS ON THE PULMONARY SYSTEM LawCommerce.Com Contact: customerservice@lawcommerce.com THE STATE OF ASBESTOS LITIGATION: JUDICIAL PANEL DISCUSSION LawCommerce.Com Contact: customerservice@lawcommerce.com TRYING AN ASBESTOS CASE LawCommerce.Com Contact: customerservice@lawcommerce.com ______________________________________________________________________ The Meetings, Conferences and Seminars column appears in the Class Action Reporter each Wednesday. Submissions via e-mail to carconf@beard.com are encouraged. New Securities Fraud Cases AEGON NV: Faruqi & Faruqi Commences Securities Fraud Suit in S.D. NY -------------------------------------------------------------------- Faruqi & Faruqi 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 Aegon, N.V. (NYSE:AEG) securities between August 9, 2001 and July 22, 2002, inclusive. The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Aegon's financial results and business prospects. Specifically, the complaint alleges that despite slumping stock markets, Aegon touted that it was less vulnerable to market shifts because of its "high quality market investments" and that the Company was not subject to sharp downward variations in annual net income. Moreover, the Company reassured investors that its 2002 earnings would at least match its 2001 earnings. The market was then stunned, however, when the Company announced on July 22, 2002 that net income for 2002 would be 30% to 35% lower than in 2001. As a result of this revelation on July 22, 2002, the stock declined to $13.25 per share from $16.99 per share the previous trading day. For more details, contact Eric Crusius or Anthony Vozzolo by Mail: 320 East 39th Street, New York, NY 10016 by Phone: (877) 247-4292 or (212) 983-9330 by E-mail: Ecrusius@faruqilaw.com or Avozzolo@faruqilaw.com AMERICREDIT CORPORATION: Wolf Haldenstein Lodges Securities Suit in TX ---------------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class action in the Northern District of Texas, Fort Worth Division on behalf of AmeriCredit shareholders who purchased the common stock of AmeriCredit (NYSE: ACF), between April 14, 1999 and January 15, 2003. The complaint charges AmeriCredit and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of AmeriCredit's revenues and earnings caused AmeriCredit's stock price to become artificially inflated, inflicting enormous damages on investors. More specifically, the plaintiff alleges that defendants misrepresented AmeriCredit's financial performance by improperly deferring delinquent loans to avoid customer defaults so AmeriCredit could have access to cash that otherwise would have been restricted. As a result of defendants' scheme, the plaintiff complains, defendants maintained inadequate cash reserves. For more details, contact Fred Taylor Isquith, Gustavo Bruckner, Michael Miske, George Peters or Derek Behnke by Mail: 270 Madison Avenue, New York, New York 10016, by Phone: (800) 575-0735 by E-mail: classmember@whafh.com or visit the Firm's Website: http://www.whafh.com. All e-mail correspondence should make reference to AmeriCredit. CLEARONE COMMUNICATIONS: Faruqi & Faruqi Lodges Securities Suit in UT --------------------------------------------------------------------- Faruqi & Faruqi LLP initiated a securities class action in the United States District Court for the District of Utah, on behalf of all purchasers of ClearOne Communications, Inc. (Nasdaq:CLRO) securities between January 4, 2001 and January 14, 2003, inclusive. The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning ClearOne's financial results and business prospects. Specifically, the complaint alleges that ClearOne, through the use of improper revenue recognition practices, inflated revenues, net income and accounts receivables during the class period. Among other practices, defendants improperly recognized revenues from products which distributors had the right to return or exchange. As a result, the Company's securities prices were artificially inflated throughout the class period, allowing defendants to close a $25.5 million private placement of common stock on December 11, 2001. On January 15, 2003, however, defendants revealed that the Securities and Exchange Commission had filed a complaint against them for the filing of false financial statements due to improper revenue recognition. As a result of the revelation, the Company's shares plummeted below $1.50, more than 90% lower than its class period high. For more details, contact Eric Crusius or Anthony Vozzolo by Mail: 320 East 39th Street, New York, NY 10016 by Phone: (877) 247-4292 or (212) 983-9330 or by E-mail: Ecrusius@faruqilaw.com or Avozzolo@faruqilaw.com MCSI INC.: Faruqi & Faruqi Commences Securities Fraud Suit in S.D. NY --------------------------------------------------------------------- Faruqi & Faruqi 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 MCSi, Inc. (Nasdaq:MCSI) securities between July 24, 2001 and February 26, 2002, inclusive. The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning the Company's financial results and business prospects. Specifically, the complaint alleges that the Company touted the success of its businesses -- particularly the high- margin systems integration business. These statements were false and misleading as they failed to disclose that the Company's business was actually corroding and that its integration business was not operating on as a successful level as represented. As a result, the Company's securities prices were artificially inflated throughout the class period, allowing insiders to sell massive amounts of stock following two follow-on public offerings. On February 26, 2002, however, the Company shocked the market by reporting a 29% decline in shares for the fourth quarter of 2001. In reaction to this announcement, shares of MCSi common stock plunged by 40%, falling from $17.35 per share close on February 25, 2002 to a close of $10.40 per share on February 26, 2002. For more details, contact Eric Crusius or Anthony Vozzolo by Mail: 320 East 39th Street, New York, NY 10016 by Phone: (877) 247-4292 or (212) 983-9330 or by E-mail: Ecrusius@faruqilaw.com or Avozzolo@faruqilaw.com MCSI INC.: Schiffrin & Barroway Lodges Securities Fraud Suit in S.D. OH ----------------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the Southern District of Ohio Western Division on behalf of all purchasers of the common stock of MCSi Inc., (Nasdaq: MCSI) from July 24, 2001 through February 26, 2002, inclusive. The complaint charges that the Comapny, Michael E. Peppel (CEO, President and Chairman) and Ira H. Stanley (CFO, Sr. V.P.) 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 July 24, 2001 to February 26, 2002. According to the complaint, throughout the class period, defendants issued numerous statements in quarterly and annual press releases regarding the supposed strength of its business, particularly the success of its high-margin systems integration business. According to the complaint, these, and other representations detailed therein, were materially false and misleading because they failed to disclose that MCSi's business was deteriorating overall and that its integration services business was not operating as successfully as defendants had represented. The complaint further alleges that the scheme was designed to artificially inflate the price of MCSi's common stock in order to allow MCSi insiders to profit by selling their shares of MCSi common stock at artificially inflated prices in two follow-on public offerings. On August 15, 2001, MCSi sold 4 million shares in a secondary offering at $11.50 per share and on December 19, 2001 the Company and certain selling shareholders, including Mr. Peppel who sold 200,000 shares for gross proceeds of $4,575,000, undertook another public offering, selling a total of 5.2 million shares of MCSi common stock at $22.875 per share. Then, on February 26, 2002, the Company shocked the market by reporting a 29% decline in sales for the fourth quarter of 2001, and a loss of $0.24 per share (including a restructuring charge). In reaction to this announcement, the price of MCSi common stock plunged by 40%, falling from a $17.35 per share close on February 25 to a close of $10.40 per share on February 26, on extremely heavy trading volume. For more details, contact Marc A. Topaz or Stuart L. Berman by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone: 1-888-299-7706 (toll free) or 1-610-667-7706 or by E-mail: info@sbclasslaw.com MOTOROLA INC.: Zwerling Schachter Commences Securities Suit in N.D. CA ---------------------------------------------------------------------- Zwerling, Schachter & Zwerling, LLP initiated a securities class action in the United States District Court for the Northern District of Illinois, on behalf of all persons and entities who purchased the common stock of Motorola, Inc. (NYSE: MOT) between February 3, 2000 and May 14, 2001, inclusive. The complaint 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 investing community during the class period thereby artificially inflating the price of Motorola common stock. As alleged in the complaint, defendants made numerous false statements about transactions between Motorola and Telsim Mobil Telekomunikasyon Hizmetleri A.S. (Telsim), a wireless telecommunications carrier with operations in Turkey. On February 3, 2000, Motorola issued a press release announcing that it had entered into a three-year agreement to provide products and services to Telsim with potential revenue of $1.5 billion. Motorola failed to disclose that the agreement with Telsim required Motorola to provide Telsim with $1.7 billion in vendor financing. In effect, Motorola was loaning Telsim the money used to purchase Motorola products and services forcing Motorola to bear the significant risk of default. On March 29, 2001, Motorola filed its Annual Proxy Statement with the Securities and Exchange Commission in which Motorola only partially disclosed the magnitude of its vendor financing commitments and failed to disclose the precarious nature of those loans. On April 6, 2001, shares of Motorola stock dropped twenty-three percent. Six weeks later, Motorola's revealed that $728 million of the Telsim loan was past due and that Motorola actually had loaned Telsim $2 billion in vendor financing -- $300 million more than previously disclosed. For more information, contact Shaye J. Fuchs or Jayne Nykolyn by Phone: 1-800-721-3900 by E-mail: sfuchs@zsz.com or jnykolyn@zsz.com or visit the firm's Website: http://www.zsz.com TRANSKARYOTIC THERAPIES: Faruqi & Faruqi Launches Securities Suit in MA ----------------------------------------------------------------------- Faruqi & Faruqi LLP initiated a securities class action in the United States District Court for the District of Massachusetts, on behalf of all purchasers of Transkaryotic, Inc. (Nasdaq:TKTX) securities between January 4, 2001 and January 14, 2003, inclusive. The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Transkaryotic's financial results and business prospects. Specifically, the complaint alleges that Transkaryotic failed to disclose materially adverse information regarding the prospects for FDA approval of Repagal, Transkaryotic's drug for the treatment of Fabry Disease. Moreover, while the Company continued to assure investors otherwise, it knew that FDA approval was not imminent because their application to the FDA did not satisfactorily address questions raised by the FDA and there were serious design flaws in the clinical trials which precluded approval. Defendants' scheme began to unravel when the Company revealed on October 3, 2002 that approval of Repagal would be delayed until the first half of 2003. As a result of these revelations, the Company's shares plummeted to $12.75 on October 3, 2002 from $33.25 the previous day's close. Moreover, on January 14, 2003, during an FDA Advisory Committee meeting convened to consider Replagal's efficacy, the Committee unanimously voted to disclose to the FDA that Transkaryotic had not provided sufficient evidence that Replagal is effective in treating Fabry Disease. It was also revealed that the FDA had informed Transkaryotic of these same concerns as early as January 2001. Transkaryotic stock plummeted to $6.49 per share on January 15, 2003 upon the news. For more details, contact Eric Crusius or Anthony Vozzolo by Mail: 320 East 39th Street, New York, NY 10016 by Phone: (877) 247-4292 or (212) 983-9330 by E-mail: Ecrusius@faruqilaw.com or Avozzolo@faruqilaw.com WESTAR ENERGY: Faruqi & Faruqi Commences Securities Lawsuit in KS Court ----------------------------------------------------------------------- Faruqi & Faruqi LLP initiated a securities class action in the United States District Court for the District of Kansas on behalf of all purchasers of Westar Energy, Inc. (NYSE:WR) securities between May 15, 2001 through December 26, 2002, inclusive. The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Westar's financial results and business prospects. Specifically, the complaint alleges that Westar failed to disclose that the Company was engaging in bogus, round trip energy transactions, whereby the Company sold energy and simultaneously bought it back for the same consideration, recognizing the trades as revenue. Moreover, the Company failed to disclose that it had under- reported, by tens of millions of dollars, a goodwill impairment charge relating to Westar's acquisition of Protection One. However, on November 1, 2002, Westar shocked the market when it announced that it was restating its financial results for the first and second quarter of 2002 as a result of the under-reporting of these impairment charges. In addition, on December 26, 2002, the Company announced that the Federal Energy Regulatory Commission issued a subpoena relating to round trip trades between Westar and trading partner Cleco Corp. In reaction to this announcement, the price of Westar common stock dropped, falling from a December 25, 2002 close of $11.20 per share, to close at $9.98 per share on December 30, 2002, a decline of 10.8% over three trading days on unusually heavy trading volume. For more details, contact Eric Crusius or Anthony Vozzolo by Mail: 320 East 39th Street, New York, NY 10016 by Phone: (877) 247-4292 or (212) 983-9330 by E-mail: Ecrusius@faruqilaw.com or Avozzolo@faruqilaw.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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *