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              C L A S S   A C T I O N   R E P O R T E R

               Tuesday, June 24, 2003, Vol. 5, No. 123

                           Headlines

ALLIED HOLDINGS: OOIDA Sues Over Truth-in-Lending Act Violations
APARTHEID LITIGATION: Swiss Govt Blocks Access Company Archives
BELLSOUTH: Lawyer's Exclusion from Racial Bias Suit Upheld
BEST BUY: NC Attorney General Warns Against Identity Theft Scam
CANADA: Class Proceedings Supports Suit V. Ontario Pension Plan

CREE INC.: Co-Founder Charges Brother, Company With Harassment
ENRON CORPORATION: Oregon Utility Investors File Suit On Merger
ESSO: Blast Claims Of 340 Firms May Total $36M As Trial Nears
eUNIVERSE INC.: Investors Launch Securities Fraud Lawsuit in CA
FERDINAND MARCOS: Judge Lifts Stay To Release $40M Compensation

FOOD INDUSTRY: Restaurants Ask Congress For Protection V. Suits
FOSTER INC: Highway Trooper Files Bias Suit over Ocala Denny's
FIRESTONE: Regulators Decide Against Recall Of Steeltex Tires
IDAHO: State To Distribute Part in Vitamin Antitrust Settlement
ILLINOIS: Charges v. 103 Arrested Iraqi War Protestors Dropped

MARTHA STEWART: Attorneys to Begin Examining Evidence In Lawsuit
NEBRASKA: Appeals Court Hears Medicaid Case Over Benefits Cut
NESTLE WATER: Denies Charges in Lawsuit Over Poland Spring Water
OHIO: Mothers Sue Over Withheld Overdue Child Support Payments
RITE AID: To Begin $140M Payout To Current, Former Shareholders

ST. PAUL INSURANCE: Doctors Nationwide Sue Over Reserve Misuse
TENET HEALTHCARE: Sued Over Exorbitant Piedmont Medical Charges
UNITED STATES: Report Revives NY Muslim Detainees Rights Lawsuit
WAL-MART STORES: Retailer Argues V. Certification For Bias Suit
WESTPOINT STEVENS: GA Court Refuses To Dismiss Securities Suit

WESTPOINT STEVENS: Named As Defendant in Slave Reparations Suits

                   New Security Fraud Cases

BLUE RHINO: Wolf Haldenstein Lodges Securities Suit in C.D. CA
BLUE RHINO: Bernstein Liebhard Lodges Securities Suit in C.D. CA
CREDIT SUISSE: Berger & Montague Lodges Securities Lawsuit in MA
DIVINE INC.: Wechsler Harwood Lodges Securities Suit in N.D. IL
EUNIVERSE INC.: Pomerantz Haudek Launches Securities Suit in CA

EUNIVERSE INC.: Schatz & Nobel Lodges Securities Suit in C.D. CA
FEDERAL HOME: Alfred Yates Lodges Securities Lawsuit in S.D. NY
FEDERAL HOME: Wolf Haldenstein Lodges Securities Suit in E.D. VA
LEHMAN BROTHERS: Pomerantz Haudek Lodges Securities Suit in NY
LEHMAN BROTHERS: Rabin Murray Lodges Securities Suit in S.D. NY

RECOTON CORPORATION: Zwerling Schachter Files FL Securities Suit
SEARS ROEBUCK: Much Shelist Lodges Securities Fraud Suit in IL

                          *********


ALLIED HOLDINGS: OOIDA Sues Over Truth-in-Lending Act Violations
----------------------------------------------------------------
The Owner-Operator Independent Drivers Association (OOIDA) filed a class
action against Allied Holdings, Inc. and its subsidiaries Allied Automotive
Group and Allied Systems, Ltd. for alleged violations of the federal leasing
regulations.  The suit is pending in the United States District Court for
the Northern District of Georgia, truckinginfo.com reports.

The suit alleges that the Company violated the federal truth-in-leasing
regulations by its failure to include certain provisions in its lease
agreements that are required by the federal regulations, while incorporating
other provisions that conflict with the regulations. The lawsuit also
alleges that Allied does not adhere to or perform certain obligations
established by the federal leasing regulations.

The suit was filed on behalf of behalf of owner-operators affected by Allied
Systems and has also requested a preliminary injunction to prohibit Allied
Systems from doing business with equipment it does not own until its leases
are brought into compliance with federal regulations, truckinginfo.com
reports.


APARTHEID LITIGATION: Swiss Govt Blocks Access Company Archives
---------------------------------------------------------------
Switzerland has blocked access to government archives relating to the
country's ties with apartheid-era South Africa, swissinfo.org reports.
According to the Swiss finance ministry, the temporary decision has been
taken to protect Swiss companies facing class actions in the United States.

Several suits were filed last November in New York against 20 banks and
multinational companies on behalf of the victims of apartheid.  The suit
also named underwriting firms Credit Suisse and UBS, firms such as the oil
companies Exxon and Shell, and carmakers Ford and General Motors in the
lawsuit.

In a statement, the finance ministry asserted, "There is the particular risk
that Swiss firms, due to easier access to information, could be singled out
and face exaggerated accusations."

The head of the Swiss research program into apartheid-era links told
swissinfo.org the move will limit his ability to properly probe
Switzerland's relationship with the white regime in Pretoria.  The ministry
said no other country had offered comparable open access to such
information.

The archives were opened in May 2000 as part of a national research program
into relations between Switzerland and South Africa during the apartheid
era.  Georg Kreis, the head of the research program, told swissinfo.org he
wasn't surprised by the decision.  "I, of course, very much regret that the
framework conditions have been changed while we are in the process of
research," he told swissinfo.

"On the other hand, I do have a certain understanding that when historical
research encroaches on the present then there's a risk that conditions will
change and affect the conditions under which we can carry out our research,"
he added.

The non-governmental organization, the Swiss Campaign for Apartheid Caused
Debt Cancellation and Reparations, criticized Switzerland's decision.  "We
ask ourselves what the finance ministry has to hide from the public," the
group said in a statement.


BELLSOUTH: Lawyer's Exclusion from Racial Bias Suit Upheld
----------------------------------------------------------
A federal appeals court in Atlanta has upheld a lower court's decision that
an attorney hired by BellSouth in a race discrimination suit should be
disqualified as counsel, the
Atlanta Journal-Constitution reports.  The lawsuit was scheduled before a
judge who is the attorney's uncle.

The Atlanta appeals panel denied the Company's request that it overturn the
lower court's decision to disqualify Terry Price and his Birmingham law
firm, Lehr Middlebrooks Price & Proctor.  The appeal stemmed from a
discrimination suit filed in April 2002 in the United States District Court
in Birmingham, Alabama by five African-Americans who work for or formerly
worked for BellSouth, and who alleged the Company frustrated their attempts
to secure promotions by decisions based on race.

The case, which is seeking class -action status, originally was assigned to
U.W. Clemon, an African-American judge on the Birmingham federal court's
bench.  BellSouth hired Terry Price, the judge's nephew, as local counsel, a
move which require Judge Clemon to step down from the case.

Lawyers for the plaintiffs objected to Mr. Price as counsel, alleging the
hiring was a deliberate move by BellSouth to remove Judge Clemon from the
case.  Another judge on the bench, Lynwood Smith, at first agreed and
ordered BellSouth to find a new lawyer.

Later, the clerk of the court testified that the clerk's office had
improperly assigned the case to Judge Clemon when it failed to follow
procedures that call for the random selection of judges.  Judge Smith then
ordered the case to be reassigned through random selection, from which it
followed that the case was reassigned to Judge Smith.

BellSouth then appealed to the Atlanta appeals court, Judge Smith's ruling
for the plaintiffs' lawyers who had objected to the hiring of Mr. Price as a
strategy to remove Judge Clemon as judge for the race discrimination case.

In its recent decision, a majority of a three-judge panel of the
Eleventh Circuit Court of Appeals declined to overturn Judge Smith's
decision, saying that BellSouth "failed to demonstrate a clear and
undisputable right to relief or demonstrable justice."  The company can
appeal to the full appeals court or go to the US Supreme Court.

BellSouth spokeswoman Necole Merritt said BellSouth believes the case is
about the important issue of "the company's fundamental right to select
counsel whom it believes is best qualified to represent the company's
interest in this lawsuit."

Joseph Sellers, who represents the plaintiffs, said that is not the issue at
all.  "Notwithstanding a party's right to choose its own counsel, the panel
said the party -- here, BellSouth -- may not choose a lawyer for an improper
purpose," said Mr. Sellers, a partner at the Washington law firm of Cohen
Milstein Hausfeld & Toll.


BEST BUY: NC Attorney General Warns Against Identity Theft Scam
---------------------------------------------------------------
North Carolina Attorney General Roy Cooper issued a warning about a new
identity theft scam making the rounds by email.

"ID thieves will stop at nothing to rob consumers of their good names,"
Atty. General Cooper said.  "This scam is the latest attempt to catch
consumers off guard and steal their valuable personal financial
information."

Consumers across North Carolina and the country have reported receiving
emails with the subject line "Best Buy Order Fraud Alert."  The message
claims to come from the "Fraud Department" of Best Buy, a major retailer of
consumer electronics.  The email tells the recipient that they must visit a
website and verify certain information before their order can be processed.
Consumers who visit the site are then asked to reveal their credit card and
bank account numbers.

These fraudulent emails were not sent by Best Buy and consumers who receive
them should not respond, Atty. General Cooper warned.  Anyone who has
already responded to one of these messages should contact their bank and
credit card company immediately.

For more details, contact the agency by Phone: 1-877-IDTHEFT or visit the
Website: http://www.jus.state.nc.us/cp/IDTHEFT.htm.


CANADA: Class Proceedings Supports Suit V. Ontario Pension Plan
---------------------------------------------------------------
The Class Proceedings Fund agreed to fund a class action on behalf of the
members of the Participating Co-operatives of Ontario Trusteed Pension Plan.
The class proceeding involves allegations regarding investment losses
suffered by about 2,300 current and former employees of 26 Ontario farm
co-operatives.

Established by the Law Society Amendment Act (Class Proceedings Fund), 1992,
S.O. 1992, c.7, the Class Proceedings Fund advances funds to pay some or all
of a plaintiff's disbursements.  If a funded case is unsuccessful, the Fund
will also indemnify a plaintiff who is ordered to pay a defendant's costs.
The purpose of the Fund is to increase access to justice.

Plaintiffs apply to the Fund's Class Proceedings Committee, comprised of
five lawyers, who screen the case, review the relevant documents, and meet
and discuss the matter with plaintiffs' counsel before agreeing to provide
funding.

The proceeding, commenced on February 19, 2003, names as defendants the
pension plan board of trustees, its former investment manager and
consultant, the actuaries and the custodian of the pension fund.  The action
alleges that the defendants were negligent and breached their fiduciary
duties owed to plan members.

According to the Financial Services Commission of Ontario only $64 million
was available last September to meet $120 million in pension liabilities
under the Plan.  Among the larger groups affected in this proceeding are the
retirees and former employees of the former United Co-operatives of Ontario.

For more details, contact Kirk Baert of Koskie Minsky by Phone: 416-595-2117
or by Fax: 416-204-2889


CREE INC.: Co-Founder Charges Brother, Company With Harassment
--------------------------------------------------------------
Cree, Inc. co-founder Eric Hunter charged his own brother and Cree
co-founder Neal Hunter with harassing him and his family, over the $3.2
billion lawsuit he filed against the Company alleging securities violations,
the Durham Herald reports.

Mr. Hunter's attorney filed a request for preliminary injunction against the
semiconductor company and Neal Hunter, alleging that Company representatives
have been following Eric Hunter's family near their South Carolina home and
around Europe.

The Company or its representatives have made threatening phone calls to Eric
Hunter, Mr. Hunter's attorney alleges, and also have attempted to have him
"wrongfully arrested on felony charges," according to court papers.  The
injunction seeks to prohibit Neal Hunter and Cree from "contacting,
communicating with, confronting, following or otherwise harassing" his
family.

The injunction filed in the United States District Court in Greensboro,
North Carolina also stated that some of the harassment occurred prior to
Eric Hunter telling Cree six months ago that he was reporting the company's
alleged violations, but most has occurred since then, said Michael Unti, his
lawyer.

Aside from the Cree lawsuit, Eric Hunter also filed a $10 million lawsuit
against his other brother, Jeff Hunter, and Jeff Hunter's former company,
Morrisville gem manufacturer Charles & Colvard.  The two suits allege
securities violations and secret business agreements between the two firms.

Cree officials had no comment Thursday on the injunction request. Mr. Unti
said he will file affidavits next week substantiating some of the claims,
including a report by hotel security at The Ritz in London confirming that
the Hunter family experienced problems there.

"You may seem paranoid sometimes, but sometimes there really are people out
to get you," Mr. Unti told the Herald.  "There's a lot of money involved,
and very high emotions."

It's difficult to determine the credibility of Eric Hunter's claims, Harsh
Kumar, a research analyst with Morgan Keegan & Co. in Memphis, told the
Herald.  As Cree's co-founder and former chief executive, Eric Hunter's
claims would appear to have at least some merit, Mr. Kumar said.  However,
Cree's current chief executive has said in a statement that Eric Hunter has
questioned the same issues before and that the firm's board has investigated
and found nothing.

Also a distraction from Cree's core business are five class action
shareholder lawsuits, Mr. Kumar said, including two suits filed Thursday.

Atty. Unti has been surprised by the number of shareholder suits that have
been filed, and suspects that the other firms had been independently
researching Cree's business "well in advance" of Eric Hunter's suit.  It's
likely that the cases will all be consolidated for at least the discovery
phase, he said.


ENRON CORPORATION: Oregon Utility Investors File Suit On Merger
---------------------------------------------------------------
Former shareholders in the Oregon utility, Portland General Electric (PGE),
filed suit in Multnomah County Circuit Court, in Portland, Oregon against
two former officers of that company, one of whom, they claim, misled them
into approving the merger with Enron Corporation, the Associated Press
Newswires reports.

PGE shareholders received $1.8 billion worth of Enron stock when the merger
became a fact in 1997, but the stock became virtually
worthless" when Enron declared bankruptcy in December 2001, according to the
class action.

The lawsuit claims that one of the named defendants, former PGE chief
executive officer Ken Harrison, gave the investors misleading advice that
led them to approve the merger with Enron.  Mr. Harrison gained about $75
million from his sale of the Enron stock before that company's stock plunged
in value.  Mr. Harrison, who recently purchased a winery near Walla Walla,
Washington, could not be reached.  The lawsuit also names as defendants:

     (1) Joseph Hirko, former chief financial officer for PGE,

     (2) accounting firm Arthur Andersen, which worked for both
         PGE and Enron,

     (3) Jack Wilborn, then managing partner of Andersen's
         Portland office and

     (4) Goldman Sachs, the New York-based investment banking
         firm that structured the merger

Gary Grenley, the Portland attorney who represents the shareholders in their
lawsuit, said that the people who sold their Enron stock before its slide,
like Mr. Harrison and Mr. Hirko, did well.  "If you were a long-term
investor who held the stock, you lost practically everything," Mr. Grenley
said.

Mr. Hirko, who made $35 million on the sale of his Enron shares, was
indicted in May, on 218 charges of conspiracy to commit wire and securities
fraud.  A resident of the Portland area, Mr. Hirko is free on a $3 million
bond.

The investors' lawsuit comes ahead of a June 30 deadline for Enron to file a
bankruptcy plan.  The city of Portland is seeking to acquire PGE, which it
hopes to run as a publicly owned utility.


ESSO: Blast Claims Of 340 Firms May Total $36M As Trial Nears
-------------------------------------------------------------
To date, about 340 business businesses have lodged insurance claims for more
than $36 million in a class action seeking compensation for damages suffered
by the businesses in the 1998 Longford, Australia, natural gas plant
explosion, The Age reports.

The lawsuit was filed in the Victorian Supreme Court, in Australia, and will
be heard before Justice William Gillard.   In a February finding, Justice
Gillard excluded from the class action householders, employees laid off
during the gas crisis and simple economic losses to business, eliminating
most of the 43,000 original claims.  The claims now remaining in the class
action are for damage to property and resulting business losses.  The
largest single claim at the moment, made through the class action, is $13
million; another is for $7 million; and a third
for $4 million, ranging downward to many below $5,000.

Most importantly, in the February finding, Esso, as it was then
Victoria's only gas supplier, was found to have a duty of care to prevent
the property and subsequent economic damage to businesses caused by the
Longford explosion.  Esso may appeal against that finding, and the company
has until July 1, to do so, but is still reviewing its options.

Justice Gillard must now decide how the claims should be dealt with.  It is
likely the big claims will be argued in court, while smaller claims will be
handled through a mediation or adjudication process.

Esso is likely to be hit with a big interest bill as a result of the claims.
Justice Gillard will rule soon on the rate of interest to be paid by the
company, back almost to the Longford explosion on September 25, 1998.

Claim numbers could rise, as Justice Gillard has ordered lawyers to run two
advertisements in the daily newspapers before July 16, telling businesses
with claims arising out of the Longford plant explosion to register with the
class action, and informing them that those not registering by early
September will lose their chance for compensation.


eUNIVERSE INC.: Investors Launch Securities Fraud Lawsuit in CA
---------------------------------------------------------------
eUniverse, Inc. faces six purported securities class actions filed in the
United States District Court for the Central District of California on
behalf of all persons who purchased or acquired its securities between July
30, 2002 and May 5, 2003, inclusive.  The suits also name as defendants the
Company and several current and former officers and/or employees of the
Company.

The suits allege that defendants violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by
issuing a series of material misrepresentations to the market between July
30, 2002 and May 5, 2003, thereby artificially inflating the price of
eUniverse common stock.

In addition, two purported shareholder derivative actions, which are
substantially similar, have been filed against various current and former
directors, officers, and/or employees of the Company in the Superior Court
of California for the County of Los Angeles.

The Company expects that the federal cases (and any additional similar
actions) will be consolidated into one action and that the state suits (and
any additional similar actions) will similarly be coordinated before one
judge.


FERDINAND MARCOS: Judge Lifts Stay To Release $40M Compensation
----------------------------------------------------------------
A federal judge recently lifted an order that had stayed attorneys from
seeking the release of $40 million in assets of the late Philippine
President Ferdinand Marcos, the Associated Press Newswires reports.  US
District Court Judge Manuel L. Real ordered the stay last fall, saying that
he wanted guidance from the Ninth US Circuit Court of Appeals on how to
proceed in the case.

The search for guidance stems from the class action brought by
thousands of Filipinos who successfully sued the Marcos estate for $2
billion over human rights abuses they suffered.  Their attorneys are trying
to have $40 million released as an initial
payout, to begin paying the judgment awarded by a Honolulu court eight years
ago.  To date, the class of 9,539 Filipinos has not received any of the
money awarded them, said Sherry Broder, an attorney who represented the
plaintiffs.

The Ninth Circuit had said it wanted to examine the Philippine judicial
system to determine what action, if any, it was taking with respect to
Marcos assets in that country, Ms. Broder said.
Attorneys said recently the Philippine government action on the case, and
instead has sought to have itself dismissed from further US court
proceedings.

Judge Real said at a recent hearing that he was lifting the stay "so the
Court of Appeals can help me in terms of what should be done," thereby
forcing the issue so that compensation proceedings can begin.

"Eventually, something is going to happen in this court," said Judge Real.
"Why not now."

The lawsuit was filed against the Marcos estate in 1986, the year President
Marcos was deposed and fled to Hawaii.  He died in 1989.  In 1995, a
Honolulu jury awarded plaintiffs $2 billion, after finding President Marcos
responsible for summary executions, disappearances and torture.  The
judgment has been stalled in court and has grown to about $3.1 billion with
interest.

The $40 million initial payout has been held in an escrow account because of
competing claims of ownership by the Marcos estate, the Philippine
government and the human rights victims who are the plaintiffs in the case.


FOOD INDUSTRY: Restaurants Ask Congress For Protection V. Suits
---------------------------------------------------------------
Food companies, restaurants and cookie makers are asking US Congress to
protect them from potential lawsuits from obese people, the Associated Press
reports.  A 2001 Surgeon General report stated that obesity is turning into
an epidemic, with about 60 percent of the nation's adult population and 13
percent of children overweight.

Recently, several class actions have been filed against fast food chains
like McDonald's and Wendy's, arguing that the food has contributed to their
obesity and diseases such as diabetes.  A lawsuit against McDonald's was
dismissed last year by the United States District Court in New York.

"The thought that someone can file a lawsuit based in part on a choice they
have made regarding where to dine and what to eat is disturbing,"
Christianne Ricchi, board member of the National Restaurant Association,
said at a hearing with the House Judiciary subcommittee on commercial law,
AP reports.

"I fear for the industry and the impact these lawsuits could have on the
economy," said Ricchi, the owner of i Ricchi, an Italian restaurant in
Washington.

The Association is supporting a bill filed by Rep. Ric Keller, R-Fla., which
would shield restaurants from frivolous lawsuits.  No similar bill has been
introduced in the Senate.  Rep. Keller, who received $2,500 from the
National Restaurant Association in the 2000 election year, argued that the
lawsuits are frivolous and won't solve the obesity problem.

"Of course, this litigation won't make anyone skinnier, but it would make
the lawyers' bank accounts fatter," Rep. Keller said.

Law Professor John F. Banzhaf, however, told Congress that if the lawsuits
were really frivolous, then the restaurants shouldn't have to push for the
measures, AP states.

"Note that the smoker lawsuits, the nonsmoker lawsuits, and the lawsuits by
the states against the tobacco industry, all were initially called
frivolous," Mr. Banzhaf told lawmakers at the hearing.  "But they have all
proven their worth and helped to make a significant dent in the public
health problem of smoking."

The Grocery Manufacturers of America disagreed with the comparison.
Spokesman Gene Grabowski told AP in an interview that food companies are
much different from tobacco businesses.

"The food industry offers 60,000 items in a grocery store today," he said.
"There's a wide variety - low fat, no fat, there's an array of calories - so
you can make a choice.  You can't make that choice with a tobacco product."


FOSTER INC: Highway Trooper Files Bias Suit over Ocala Denny's
--------------------------------------------------------------
A Florida Highway Patrol (FHP) Trooper has filed a discrimination lawsuit
against Foster Inc, which owns the Denny's Corporation in Ocala, Florida,
Associated Press Newswires reports.  Denny's is not named in the lawsuit.

The lawsuit, filed recently in Marion Circuit Court, against Foster Inc.,
which owns the Denny's restaurant in Ocala, claims that an employee called
Barbara Levy, the plaintiff Highway Patrol Trooper, a "black pig."

According to Gregory King, Ms. Levy's attorney, Ms. Levy entered the
restaurant in the early morning hours of September 28, 2002, accompanied by
a fellow FHP trooper and three Marion County sheriff's deputies.  Ms. Levy
was the only black and the only woman in the group.  All five officers were
in the middle of their overnight shift and were in uniform.

When their food orders arrived, Officer Levy's plate had a small plastic pig
on it, according to the complaint, and the pig "imitated the act of
defecating" when squeezed.  When Officer Levy asked the server about what it
was, the server said the cook had put it there.  When Officer Levy asked the
cook why the pig was on her plate, the woman responded, "Well, that's what
you are, a black pig," the complaint charged.

Former Ocala Mayor E.L Foster, president of Foster Inc., said he fired the
server and the cook the next day.  Mr. Foster said he was unaware of any
racial connotations to the incident.

Accused of making blacks prepay for meals, Denny's paid $54 million to
settle a class action in 1994.  Denny's public relations director Debbie
Atkins said that a series of discrimination lawsuits in the early 1990s, led
to Denny's becoming a "new company."  Denny's does not tolerate
discrimination," Ms. Atkins said.


FIRESTONE: Regulators Decide Against Recall Of Steeltex Tires
-------------------------------------------------------------
US regulators have decided against reopening an investigation of
Firestone Steeltex tires, despite legal and consumer claims that the product
is defective and should be recalled, the Chicago Tribune reports.
Investigators at The National Highway Traffic Safety Administration (NHTSA)
said the heavy-duty Steeltex tires used on vehicles ranging from rescue
vehicles to motor homes had a failure rate lower than other brands used in
similar applications.

NHTSA's Office of Defects Investigation had been considering whether 27.5
million heavy-duty Steeltex R4s, R4SII and A/T tires should be investigated
again for a potential recall.

"ODI has not identified a defect trend in any of the tires in question," the
agency said in denying the petition to reopen the probe it closed last year,
citing the low failure rates.

Steeltex remains, however, the subject of a class action that
accuses Firestone's parent, Japan-based Bridegstone Corporation, of
concealing Steeltex's defects.  Firestone initiated a small Steeltex recall
in May because of potential tread separation in 42 tires made in a one-week
period in early March.  Millions of Firestone Wilderness and ATX model tires
were recalled in 2001 and 2002, after they were linked to deadly crashes
triggered by tread separations and blowouts.


IDAHO: State To Distribute Part in Vitamin Antitrust Settlement
---------------------------------------------------------------
Idaho Attorney General Lawrence Wasden announced that more than $1.2 million
is now available for additional health and
nutrition services for Idaho residents, as part of a previously announced
settlement of an antitrust case involving price-fixing by an international
vitamin cartel.

In a news conference, Attorney General Wasden presented five checks to
improve health and nutrition in Idaho.  The checks were presented to the
following:

     (1) $525,000 to the Idaho Foodbank for improved storage
         facilities.  In a recent year, the Idaho Foodbank had
         to turn away more than 100 truckloads of food, valued
         at $6.7 million, because it could not properly store
         the food;

     (2) $300,000 is being made available for senior centers
         thru out Idaho.  The senior centers can apply for
         grants of up to $2,500 to provide nutritious meals for
         senior citizens;

     (3) $150,000 to the Idaho Association of Nutrition and
         Aging Services Programs for the Meals on Wheels
         program;

     (4) $180,000 for early childhood immunizations against
         diphtheria, tetanus and pertussis;

     (5) $100,000 to the March of Dimes for promotion of use of
         folic acid by expectant or nursing mothers.  It is
         estimated that folic acid use would reduce 70% of all
         brain and spinal cord birth defects;

"It is gratifying and just that Idahoans benefit directly from this
enforcement of the Idaho Competition Act," Attorney General Wasden said.
"Idahoans deserve compensation from these companies that illegally
overcharged Idaho citizens, businesses and state government for more than a
decade.  Cases such as this demonstrate how our competition act protects
both consumers and businesses from unlawful anticompetitive practices."

Attorney General Wasden said his office will contact each of the senior
centers in Idaho to advise them of the settlement and how they may apply for
a portion of the available money.

In October 2000 three European companies, F. Hoffman-La Roche, BASF, and
Aventis (formerly Rhone-Poulenc), and three Japanese companies, Takeda
Chemical Industries Ltd., Eisai Co. Ltd., and Daiichi Pharmaceutical Co.
Ltd., agreed to the settlement with the Idaho Attorney General's Office and
the attorneys general of 20 other states, the District of Columbia and
Puerto Rico.  The settlements were the largest ever under state laws
permitting consumers and businesses to recover damages for price-fixing
over-charges, even though the consumers and businesses did not buy directly
from the price-fixers.

Federal antitrust law does not permit these "indirect purchasers" to recover
their damages, but state laws in the 23 jurisdictions, including Idaho,
permit such suits.  The attorneys general had alleged that the six companies
conspired for more than a decade to fix prices and restrict supplies of a
variety of vitamins.  The vitamins made by these companies are used in
vitamin pills, foods such as milk, cereal and bread, and feed for chickens,
cattle and fish.

"In addition to the consumer portion of the settlement approved by the
court, the settlement allows Idaho businesses to recover their damages,"
Attorney General Wasden said.  "The affected businesses have filed claims
against the $70 million business settlement fund contained in the
multi-state settlement.  We were also able to recover $186,000 for Idaho
taxpayers for overcharges on purchases made by state government."


ILLINOIS: Charges v. 103 Arrested Iraqi War Protestors Dropped
--------------------------------------------------------------
Prosecutors dropped charges against 103 people arrested by Chicago police
during two days of Iraqi war protests in late March, the Chicago Tribune
reports.  "Upon further review of the evidence, we decided we could not meet
the burden of proof on these cases," said Thomas Stanton, spokesman for the
Cook
County State Attorney's office.

Attorneys from the National Lawyers Guild have filed a class action in
federal court seeking damages and injunctive relief on behalf of all the
detainees and are seeking, as well, a city policy that will not stop legal
protests.

Prosecutors have now dropped charges against 220 of 350 people charged with
reckless conduct after protests that drew thousands downtown March 20 and
21.  More than 70 cases remain active following 53 guilty pleas, Mr. Stanton
said.

The dismissals against the 103 protesters came two days after a City Hall
hearing in which war protesters accused police of overreacting to the March
20 protest, which temporarily shut down Lake Shore Drive.  Police said they
made 543 arrests that night.

"This is a victory because we were right and we were just," said Melinda
Power, a National Lawyers Guild attorney, who represented many of the
protesters.  "This was a deliberate plot on the part of the city to
intimidate people to not protest the war."

Police arrested the protesters en masse, on March 20, when most of the
arrests were made, as the protesters were walking north on Lake Shore Drive
in Chicago, in the area of Michigan and Chicago Avenues, closing the road to
traffic.  Many protesters complained that the police were unnecessarily
rough during arrest.


MARTHA STEWART: Attorneys to Begin Examining Evidence In Lawsuit
----------------------------------------------------------------
Attorneys for homemaking queen Martha Stewart are set to begin sorting boxes
of evidence the government gathered in its probe of Ms. Stewart's securities
activities, the Associated Press reports.  The prosecutor's case includes
copies of Ms. Stewart's computer hard drive and the hard drives of some
employees at Martha Stewart Living Omnimedia, her media empire.

Ms. Stewart is charged with falsifying her Company's financial reports,
relating to her sale of nearly 4,000 Imclone Systems stock shares.  The
trial in the suit is set to commence on January 12, 2004 in the United
States District Court in the Southern District of New York.  Ms. Stewart's
lawyers also have until November 18 to make oral arguments on their motions
to dismiss the suit.

Ms. Stewart and stockbroker Peter Bacanovic have pleaded innocent to the
charges.  Ms. Stewart sold about 4,000 shares of ImClone Systems stock on
Dec. 27, 2001, the day before a negative government report on the ImClone
cancer drug Erbitux sent its share price falling.  She claims she had a
standing order with Mr. Bacanovic to sell ImClone if the stock fell below
$60, AP reports.  Prosecutors say Ms. Stewart deleted a computerized log of
a phone message in which Bacanovic told her he thought ImClone was "going to
start trading downward," then asked her assistant to restore the original
message.


NEBRASKA: Appeals Court Hears Medicaid Case Over Benefits Cut
-------------------------------------------------------------
A panel of the US Eighth Circuit Court of Appeals is considering
arguments presented by the attorneys for the Nebraska government and the two
low-income mothers who lost Medicaid coverage last year when the Nebraska
Legislature eliminated eligibility for an estimated 10,000 working parents,
the Associated Press Newswires reports.

The two mothers argue that under federal law they are entitled to continuing
Medicaid coverage through the Transitional Medical Assistance program.  This
program provides up to a year of additional healthcare coverage for those
terminated from Medicaid.

"Most of these people received 10 days' notice that they were losing their
medical coverage.  And these are working adults, trying to take care of
children," argued Becky Gould, attorney for the mothers, at the hearing
before the appeals panel.

"At the federal level, they recognized that's not enough time for people to
respond, and that is why they created the transitional program," said Ms.
Gould as she explained why the plaintiffs are eligible for the program.

The appeals panel received the case on appeal by the plaintiffs after a US
District Court judge ruled that the state is under no obligation to provide
the transitional assistance, when the case was brought before him by the two
mothers and defended by attorneys for Nebraska's Health and Human Services.

Appeals Court Judge James Loken indicated the case may hinge on what the
court decides Congress intended to require the states under welfare reform,
and whether those requirements were reasonable.  The women who filed the
lawsuit claim they have chronic medical problems and that they are unable to
work without the prescription drugs provided under Medicaid.

Having Medicaid coverage is the difference between being able to work and
support their families, or being faced with the need to quit work and go on
welfare to get the desperately needed health care," said Ms. Gould.

Medicaid is financed by a combination of federal and state dollars.  On
average, Washington pays 57 percent.  One in nine Nebraskans - some 210,000
last year - receive Medicaid, including more than half of the state's 15,000
nursing-home residents


NESTLE WATER: Denies Charges in Lawsuit Over Poland Spring Water
----------------------------------------------------------------
Nestl‚ Waters North America denied the allegations in a consumer fraud class
action filed in Connecticut Superior Court, alleging it falsely advertises
its top-selling Poland Spring brand bottled water.

The suit alleges Nestle uses heavily treated water taken from common ground
water sources when bottling Poland Spring, but then labels the bottles as
spring water and charges consumers a premium price for supposedly higher
quality water, an earlier Class Action Reporter story states.

In a statement, the Company said, "We want to assure our customers that
Poland Spring is pure natural spring water with an excellent track record
for quality.  Every bottle of Poland Spring clearly identifies the location
of its sources in Maine, and the water is regulated by the US Food & Drug
Administration and meets all federal and state regulations governing product
quality and labeling, spring water collection, and manufacturing practices."

Nestl‚ continued, according to the Beverage Daily Financial News, "We are
appalled by the false and misleading allegations contained in the legal
actions filed today.  It is a shame that the legal system tolerates this
type of behavior.  All of us at Poland Spring have worked very hard to
ensure the quality of our product and earn our customers' trust.  On behalf
of our customers and employees, we intend to vigorously defend ourselves
against the charges in this suit."


OHIO: Mothers Sue Over Withheld Overdue Child Support Payments
--------------------------------------------------------------
Five mothers have filed a lawsuit against Ohio's Department of Job and
Family Services, alleging the agency illegally withheld overdue child
support payments from them, instead, keeping the payments as reimbursement
for the aid the mothers received from the agency, according to a report by
Associated Press Newswires.

The plaintiff mothers filed their lawsuit, for which they asked class action
status, in a federal court in Cincinnati.  Their lawyer, Robert Newman, said
the state agency owes as much as $100 million in back child support
payments, dating from as far back as 1986.  The five mothers said they are
owed between $750 and $5,500 each.

"The state should do audits to see to it that child support arrearages that
have been owed to working mothers for some time are distributed to them,"
said Mr. Newman, adding that a hearing date for the request would be set in
about two months.

Mr. Newman said the lawsuit stems from the women being forced to request
state assistance because their former partners stopped sending them child
support.  When the support payments resumed, the Department held back part
of the support payments as reimbursement to repay the money the women had
received from the state, said Mr. Newman.

Department spokesman Jon Allen said that any child support money owed to
mothers dating back to 1997, has been repaid; but mothers can request an
audit if they think they are owed more.


RITE AID: To Begin $140M Payout To Current, Former Shareholders
---------------------------------------------------------------
Thousands of current and former shareholders of scandal-damaged Rite Aid
Corporation will be receiving checks totaling nearly $140 million within a
few weeks, the payout being the first installment from the settlement of the
1999 class action, the Charleston Gazette reports.

The $140 million payout to the shareholders is but one of the costs arising
out of the accounting debacle that resulted in the Company's former chairman
and chief executive officer, Martin L. Grass, recently pleading guilty to
federal conspiracy charges.

In a recent Securities and Exchange Commission filing, Rite Aid said it has
spent more than $120 million, so far, on legal-defense fees for Mr. Grass
and other indicted executives, in order to reconcile its books and records,
restate 1998 and 1999 earnings and investigate prior bookkeeping practices.

In the past three years, the company also has recorded $657 million in
charges to close 300 under-performing stores as part of a restructuring that
reversed Mr. Grass's ambitious expansion efforts, according to the SEC
report.  Thousands of employees have been put out of work as a result of the
closings.


ST. PAUL INSURANCE: Doctors Nationwide Sue Over Reserve Misuse
--------------------------------------------------------------
The former policyholders in the nation's largest medical malpractice
insurer, St. Paul Insurance, allege in a lawsuit, filed in Kanawha Circuit
Court, in West Virginia, that St. Paul "pillaged" $1.1 billion from reserves
meant to cover doctors, and used the money to boost its own earnings,
according to a report by Associated Press Newswires.

The lawsuit alleges that this "reserve manipulation" preceded the insurance
company's decision, in December 2001, to leave the malpractice market
worldwide, causing a malpractice insurance vacuum not only for doctors in
West Virginia but also nationwide.  Lawyers for the doctors include Richard
Neely, a retired state Supreme Court justice and the Washington, D.C. law
firm of Jones, Day, Reavis & Pogue.

A judge agreed recently to unseal the lawsuit, which was filed by three
Charleston, West Virginia surgeons last year and has since evolved into a
class action nationwide that aims to represent the 42,000 US doctors once
insured by St. Paul.

When they amended their lawsuit last month, the Charleston surgeons added
two Minnesota doctors and one from Colorado as named plaintiffs.  They filed
the lawsuit under seal, says the lawsuit, "out of an abundance of caution,"
because its new allegations relied on once-confidential company records.

Relying on these documents, the doctors allege that St. Paul repeatedly
"released" reserves built up from the premiums doctors paid for their
coverage.  In 1997, for an instance, the doctors allege that $488 million of
the $705 million reported as earnings that year had actually been reserves.

The doctors have linked St. Paul's handling of its reserves to their
allegations that the company cheated them out of their "tail" coverage.
This form of malpractice insurance kicks in after a doctor retires, dies or
otherwise stops practicing.  The lawsuit alleges St. Paul promised the
doctors free tail coverage, then charged them premiums for it and then
withdrew that coverage when it quit the malpractice market.

The lawsuit alleges St. Paul owes $420 million to former policyholders
nationwide for that tail coverage.  The departure of St. Paul as the largest
private supplier of malpractice insurance has forced state lawmakers to
create an emergency malpractice fund and set the stage for the doctor-run
insurance company crafted by the Legislature this year.


TENET HEALTHCARE: Sued Over Exorbitant Piedmont Medical Charges
---------------------------------------------------------------
A York County man filed a class action against the parent company of
Piedmont Healthcare System, Tenet Healthcare Corporation, claiming the
parent company breached a contract with York County, concerning pricing at
Piedmont Medical Center (PMC), The Herald reports.

The complaint, filed in York County civil court by Rock Hill's McGowan &
Hood law firm, names Tenet and AMISUB of South Carolina as defendants.
AMISUB does business as Piedmont Healthcare System.

The class action was filed on behalf of York County resident
Wade Comer and all PMC patients since January 1, 1997, who the suit claims
were billed more than allowed under a contract between York County, Tenet
and AMISUB.  The contract states that charges at PMC, a 288-bed hospital in
York County, must not be the highest among 10 peer hospitals in the region.

County Council members learned that for three consecutive years, Piedmont's
rates have been the highest among the group; in some cases, as much as 90
percent higher.  They also discovered that PMC prices, based on Medicare
data, have increased 113 percent in seven years.

The Council warned Piedmont HealthCare System recently that it has 30 days
to meet pricing obligations or face possible legal action.  Council members
say the contract requires the hospital not only to freeze rates but also to
reduce them so they are no longer the highest.

In response to the county's concerns, hospital officials said that PMC has
not raised rates since 2001, and that they have hired a consultant to help
them bring charges in line.  Hospital officials said they will share their
plan with the Council July 2.


UNITED STATES: Report Revives NY Muslim Detainees Rights Lawsuit
----------------------------------------------------------------
The United States Department of Justice, Office of the Inspector General
released a report stating it found "significant problems" with the treatment
of nearly 800 detainees nationwide, including abusive conditions at the
Metropolitan Detention Center, the Associated Press reports.

The report revitalized the civil rights class action filed against Attorney
General John Ashcroft, prison personnel, FBI supervisors and other
officials.  The suit alleges that Muslim men were mistreated after they were
held on immigration charges after the September 11 terrorist attacks.  These
allegations have been routinely denied and dismissed by federal officials.

Yasser Ebrahim told AP his introduction to the federal prison system came
from guards slamming his head into a wall while calling him a "terrorist."
Shakir Baloch says guards at the same lockup warned him, "You will be here
the rest of your life."

"What we said about all the suffering was true," Mr. Ebrahim, 31, told AP in
a phone interview from his native Egypt.  "The government was doing its best
to deny it."

The suit was filed on behalf of more than 80 men, designated "of high
interest" in the FBI investigation of the attacks.  They were jailed in the
Brooklyn facility from September 14,2001 to August 27,2002.  The suit
alleges federal officials violated their rights by imprisoning them based on
their race and religion.  The suit has been amended to incorporate the
inspector general's findings.

The abuse allegedly subsided once guards were ordered to videotape detainees
outside their cells -- a policy that prison officials said was designed
simply to deter accusations of mistreatment.  The officials cited an
al-Qaida training manual that instructed terrorists to accuse their captors
of abuse, AP reports.

Justice Department officials refuse to discuss the civil suit, AP states.
Government attorneys have asked a judge to dismiss the case, arguing Mr.
Ashcroft and other defendants are shielded by immunity laws designed to
ensure they can perform their official duties "without the chill and
distraction of damages suits."


WAL-MART STORES: Retailer Argues V. Certification For Bias Suit
---------------------------------------------------------------
Wal-Mart Stores, Inc., the world's largest retailer, has filed court papers
contending that the court should not certify as a class action the
gender-based discrimination lawsuit launched against it, the Associated
Press Newswires reports.  The granting of national class action status to
the lawsuit could bring 1.5 million women into the court action.

The lead plaintiffs in the federal lawsuit filed in 2001, in San
Francisco, allege that current and former Wal-Mart workers have been denied
equal pay and promotions because they are female.  A hearing is set for July
25, on whether to elevate the suit to include current and former female
employees.

The Company is arguing that the inclusion of all current and former female
employees would create a class too large to manage.  The retailer also
claims that plaintiffs did not use commonly accepted statistical methods in
compiling their numbers.  The scope of the proposed class is without
precedent, said the retailer.

Wal-Mart also points out, among other things, in the court filings, certain
flaws in the constitution of the class.   For example, that only one of the
seven plaintiffs sought promotion above assistant manager trainee; but yet,
contends Wal-Mart, their lawyers want to put them in a class that includes
managers up to the store level.

One of the plaintiffs' attorneys, Brad Seligman took issue with the way
Wal-Mart put forth its statistics, which claim that in 90 percent of cases
pay is equal among men and women.  Mr.
Seligman said the claim was based on "false analysis."  Mr. Seligman also
said the judge should dismiss Wal-Mart's argument that the potential class
was too large.

"I think what this (argument) suggests is that Wal-Mart's ultimate defense
is there should be some exception to employment discrimination laws for the
biggest companies," Mr. Seligman said.


WESTPOINT STEVENS: GA Court Refuses To Dismiss Securities Suit
--------------------------------------------------------------
The United States District Court for the Northern District of Georgia
refused to dismiss the consolidated securities class action filed against
WestPoint Stevens, Inc. and certain of its current and former officers and
directors.

The amended complaint asserts claims against all defendants under Section
10(b) of the Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and
against the Company and Defendant Holcombe T. Green, Jr. as "controlling
persons" under Section 20(a) of the Exchange Act.

The amended complaint alleges that, during the putative class period (i.e.,
February 10, 1999 to October 10, 2000), the Company and certain of its
officers and directors caused false and misleading statements to be issued
regarding, inter alia, alleged overcapacity and excessive inventories of the
Company's towel-related products and customer demand for such products and
that certain individual defendants wrongfully sold or pledged Company stock
at inflated prices for their benefit.

The amended complaint refers to Company press releases and quarterly and
annual reports on Securities Exchange Commission Forms 10-Q and 10-K, which
discuss the Company's results and forecasts for the fiscal years 1999 and
2000.  Plaintiffs allege that these press releases and public filings were
false and misleading because they failed to disclose that the Company
allegedly "knew sales would be adversely affected in future quarters and
years."  Plaintiffs also allege in general terms that the Company materially
overstated revenues by making premature shipments of products.

On June 6, 2002, defendants filed motions to dismiss plaintiffs' suit.  The
court denied these motions.  The action will proceed to class certification
and discovery.


WESTPOINT STEVENS: Named As Defendant in Slave Reparations Suits
----------------------------------------------------------------
WestPoint Stevens, Inc. was named as a defendant in three separate purported
class actions seeking reparation for the historic enslavement of African
Americans in the United States:

     (1) Eddlee Bankhead v. Lloyd's of London, et al, filed in
         the United States District Court for the Southern
         District of New York;

     (2) Timothy Hurdle and Chester Hurdle v. FleetBoston
         Financial Corporation, et al, initially filed in the
         California Superior Court for San Francisco County but
         has since been removed to the United States District
         Court for the Northern District of California (San
         Francisco); and

     (3) Julie Mae Wyatt-Kerwin v. J.P. Morgan Chase, filed in
         the United States District Court for the Southern
         District of Texas

All three cases have been consolidated with related cases in the US District
Court for the Northern District of Illinois.  The factual basis for all
three suits is the claim that the defendants profited from the slave labor
of the plaintiff classes' ancestors prior to 1865 and, specifically, that
Pepperell Manufacturing, predecessor to WestPoint Stevens Inc., utilized
cotton from southern planters who in turn purchased finished product to
clothe their slaves.  The California suit alleges that such practices amount
to an "unfair business practice" in violation of the California Business and
Professional Code.

The purported class includes all descendants of African American slaves.
The relief sought includes an accounting, the appointment of an independent
historical commission, imposition of a constructive trust, restitution of
the value of slave labor and defendants' unjust enrichment, disgorgement of
illicit
profits and compensatory and punitive damages.


                   New Security Fraud Cases

BLUE RHINO: Wolf Haldenstein Lodges Securities Suit in C.D. CA
--------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class
action in the United States District Court for the Central District of
California, on behalf of all persons who purchased the securities of Blue
Rhino Corporation (Nasdaq: RINO) between August 15, 2002 and February 5,
2003 inclusive, against certain officers and directors of the Company.

The complaint charges Blue Rhino and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. The complaint
alleges that each of the defendants is liable as a participant in a
fraudulent scheme and course of business that operated as a fraud or deceit
on purchasers of Blue Rhino securities by disseminating materially false and
misleading statements and/or concealing material adverse facts.  The scheme:

     (1) deceived the investing public regarding Blue Rhino's
         business, operations, management and the intrinsic
         value of Blue Rhino common stock;

     (2) enabled defendants to acquire over $30 million in
         assets, purchased using artificially inflated Blue
         Rhino shares, to refinance debt upon more favorable
         terms with its lenders;

     (3) allowed defendants to sell $15.79 million worth of
         Company common stock in a private placement, as well as
         register over $23.8 million in shares of common stock
         for large shareholders that had entered into a private
         equity deal the prior year; and

     (4) caused plaintiff and other members of the Class to
         purchase Blue Rhino securities at artificially inflated
         prices.

For more details, contact Fred Taylor Isquith 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
Blue Rhino.


BLUE RHINO: Bernstein Liebhard Lodges Securities Suit in C.D. CA
----------------------------------------------------------------
Bernstein Liebhard & Lifshitz LLP initiated a securities class action in the
United States District Court in the Central District of California on behalf
of all persons who acquired securities of Blue Rhino Corporation
(NasdaqNM:RINO) between August 15, 2002 and February 5, 2003, inclusive.

Blue Rhino is a national provider of branded propane cylinder exchanges and
related propane-fueled products.  The Company's retail partners include Home
Depot, Lowe's, Wal-Mart, Sears, KMart, Kroger, Food Lion, Winn Dixie, Circle
K and ExxonMobil. Throughout the class period, defendants made numerous
false and misleading public statements concerning the strength of Blue
Rhino's business and the value of the distributors Blue Rhino acquired.

After defendants disclosed on February 5, 2003 that the growth in Blue
Rhino's business was slowing, that the distributors Blue Rhino acquired were
in poor condition, and the actual terms concerning Blue Rhino's
acquisitions, the price of Blue Rhino stock dropped more than 12% from its
February 5, 2003 high of $14.25 per share to a low of $12.45 per share on
February 6, 2003.

For more details, contact Ms. Linda Flood, Director of Shareholder Relations
by Mail: 10 East 40th Street, New York, New York 10016 by Phone: (800)
217-1522 or (212) 779-1414 or by E-mail: RINO@bernlieb.com or visit the
firm's Website: http://www.bernlieb.com.


CREDIT SUISSE: Berger & Montague Lodges Securities Lawsuit in MA
----------------------------------------------------------------
Berger & Montague, PC initiated a securities class actions against Credit
Suisse First Boston (CSFB), a subsidiary of Credit Suisse Group (NYSE: CSR),
on behalf of persons who purchased securities of Winstar Communications,
Inc. (Pink Sheets: WCIIQ) between January 5, 2001 through April 5, 2001,
inclusive in the United States District Court for the District of
Massachusetts.

The complaint alleges that CSFB violated section 10(b) of the Securities
Exchange Act, and Rule 10b-5 promulgated thereunder, by issuing analyst
reports setting a $79 per share target price that lacked a reasonable basis
and rating Winstar a "strong buy" without adequately disclosing the
significant risks of investing in Winstar, including that Winstar needed to
raise more than $3 billion to fund its business plan and that it might not
be able to raise the necessary funds.

The Complaint further alleges that CSFB touted its "independent research"
but failed to disclose that it used its analyst reports to obtain lucrative
fees for its investment banking business.

The Securities Exchange Commission recently filed a complaint against CSFB
for issuing analyst reports in 2001 concerning Winstar that lacked a
reasonable basis, failed to adequately disclose the risk of investing in
Winstar, and for violations of NASD and NYSE regulations.

For more details, contact Sherrie R. Savett, Michael T. Fantini or Kimberly
A. Walker by Mail: 1622 Locust Street, Philadelphia, PA 19103 by Phone:
888-891-2289 or 215-875-3000 by Fax:
215-875-5715 by E-mail: InvestorProtect@bm.net or visit the firm's Website:
http://www.bergermontague.com


DIVINE INC.: Wechsler Harwood Lodges Securities Suit in N.D. IL
---------------------------------------------------------------
Wechsler Harwood LLP initiated a securities class action filed in the the
United States District Court for the Northern District of Illinois, Eastern
Division, on behalf of all purchasers of divine, inc. (Other OTC:DVINQ.PK)
(formerly listed on NASDAQ) securities from November 12, 2001 through
February 14, 2003, inclusive.  The suit names as defendants:

     (1) Andrew J. Filipowski (Chief Executive Officer and
         Chairman of the Board of Directors) and

     (3) Michael P. Cullinane (Chief Financial Officer and
         Executive Vice President)

The suit alleges violations of Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934, and Rule 10b-5 promulgated thereunder.  Throughout the
class period, defendants issued a series of material misrepresentations to
the market between November 12, 2001, and February 18, 2003, which served to
artificially inflate the price of divine securities.

As alleged in the Complaint, defendants failed to disclose and
misrepresented the following material adverse facts:

     (i) divine was engaged in a scheme of inflating its
         revenues by approximately $65 million by instructing
         employees of its wholly-owned subsidiary, RoweCom, to
         offer discounts to library customers that paid cash in
         advance -- months before payments were due to
         publishers -- even though divine had no plan to pay its
         obligations to publishers;

     (2) divine was fraudulently diverting nearly $74 million
         from RoweCom's operations;

     (3) divine lacked adequate financial and internal controls
         with respect to its RoweCom operations; and

     (4) as a result of the foregoing, divine lacked a
         reasonable basis to project profitability by year-end
         or an ability to maintain its operations without
         bankruptcy protections.

On February 18, 2003, divine announced that "despite efforts over the past
several months to minimize operating expenses and various liabilities, its
board of directors has determined that it must seek alternatives to protect
the value and viability of its operations.  As a result, divine has engaged
Broadview International LLC as advisors to assist in exploring strategic
options, which may include asset divestitures, comparable transactions,
and/or the filing of a voluntary petition under Chapter 11 of the United
States Bankruptcy Code."

In response to this announcement, the price of divine stock declined
precipitously.  During the class period, divine completed two acquisitions,
among numerous others -- acquiring Viant Corporation and Delano Technology
Corporation -- using its common stock as currency.

For more details, contact David Leifer by Mail: 488 Madison Avenue, 8th
Floor, New York, New York 10022 by Phone:
(877) 935-7400 or visit the firm's Website: http://www.whesq.com


EUNIVERSE INC.: Pomerantz Haudek Launches Securities Suit in CA
---------------------------------------------------------------
Pomerantz Haudek Block Grossman & Gross LLP initiated a securities class
action against eUniverse, Inc. (NasdaqSC:EUNI) and two of the Company's top
officers.  The action was filed on behalf of investors who purchased the
common stock of eUniverse during the period between July 31, 2002 and May 5,
2003, inclusive, in the United States District Court in the Central District
of California.

The lawsuit alleges that eUniverse issued false and misleading statements
concerning its publicly reported sales and earnings. In particular, it is
alleged that defendants overstated the Company's revenues and net income for
the second and third quarters, and possibly the first, of the Company's
fiscal year ended March 31, 2003.

Prior to the market's opening on May 6, 2003, eUniverse announced that it
was intending to restate its financial statements for the second and third
quarters, and possibly the first, of fiscal 2003, and that the restatement
will result in a material adverse change to its previously reported
financial results.  In response to the Company's announcement, the Nasdaq
stock market halted trading in the Company's stock until eUniverse satisfies
Nasdaq's request for additional information.

For more details, contact Andrew G. Tolan by Phone:
(888) 476-6529 ((888) 4-POMLAW) or by E-mail: agtolan@pomlaw.com


EUNIVERSE INC.: Schatz & Nobel Lodges Securities Suit in C.D. CA
----------------------------------------------------------------
Schatz & Nobel PC initiated a securities class action in the United States
District Court for the Central District of California on behalf of all
persons who purchased the securities of eUniverse, Inc. (Nasdaq: EUNI) from
July 30, 2002 through May 5, 2003, inclusive.

The complaint alleges that eUniverse, an entertainment network that provides
value-added content, goods and services to consumers worldwide, and certain
of its officers and directors issued materially false and misleading
statements concerning the Company's business condition.

Specifically, eUniverse issued press releases and filed statements that
materially overstated the Company's net income and earnings per share.  On
May 6, 2003, eUniverse announced that it intended to restate its financial
statements for the second and third quarters of the year ended March 31,
2003, and possibly for the first quarter of 2003.  Following the
announcement, the Nasdaq halted trading of eUniverse and the SEC initiated a
formal inquiry into the Company's restatement.

For more details, contact Nancy A. Kulesa by Phone:
(800) 797-5499 by E-mail: sn06106@aol.com or visit the firm's Website:
http://www.snlaw.net


FEDERAL HOME: Alfred Yates Lodges Securities Lawsuit in S.D. NY
---------------------------------------------------------------
Alfred G. Yates Jr., PC initiated a securities class action on behalf of
purchasers of the securities of Federal Home Loan Mortgage Corporation
(NYSE:FRE) between April 18, 2000 and June 6, 2003, inclusive.  The action
is pending in the United States District Court for the Southern District of
New York.

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 market between
April 18, 2000 and June 6, 2003, thereby artificially inflating the price of
Freddie Mac securities.

According to the complaint, defendants misrepresented the Company had
increased financial performance during the class period.  As alleged,
defendants failed to disclose and/or misrepresented the following adverse
facts:

     (1) the Company at all relevant times lacked adequate
         internal accounting controls and expertise and was
         therefore unable to ascertain the true financial
         condition of the Company;

     (2) the Company failed to account properly for hedges and
         assets with respect to derivative securities;

     (3) the Company "smoothed out its earnings" using improper
         accounting techniques to lower results in good times
         and lift results when business conditions deteriorated;

     (4) the Company provided investigators with incomplete and
         altered documents to conceal their improper accounting
         techniques; and

     (5) as a result, the value of the Company's net income and
         financial results were materially understated stated at
         all relevant times.

For more details, contact Alfred G. Yates by Phone:
1-800-391-5164 or 412-391-5164 or by E-mail: yateslaw@aol.com.


FEDERAL HOME: Wolf Haldenstein Lodges Securities Suit in E.D. VA
----------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class
action in the United States District Court for the Eastern District of
Virginia, on behalf of all persons who purchased or otherwise acquired the
securities of Federal Home Loan Mortgage Corporation (NYSE: FRE) between
April 18, 2000 and June 6, 2003, inclusive, against Freddie Mac and certain
officers of the Company.

The complaint alleges that throughout the class period, defendants issued
statements, press releases, and filed quarterly and annual reports with the
SEC describing the Company's business operations and financial condition.
These representations were materially false and misleading because they
failed to disclose that throughout the class period, the Company had
materially misstated its operating earnings.

Specifically, during the relevant time period, it has been reported that
Freddie Mac may have earned more than it reported and had a higher capital
surplus.  This practice, called "smoothing" allows companies to meet or
exceed earnings estimates and report substantial growth going forward by
deferring present gains to future periods.

The effect of this practice is to create the impression that earnings growth
is steady and the Company meets or exceeds analysts' expectations on a
regular basis.  This practice is also called "cookie jar" accounting and
violates Generally Accepted Accounting Principles and the SEC has pledged to
stop its practice among public companies.

On June 9, 2003, before the market opened, Freddie Mac issued a press
release announcing that it had fired defendant David Glenn because of
"serious questions about the timeliness and completeness of his cooperation
and candor with the board's audit committee counsel," that defendant Leland
C. Brendsel had retired and that defendant Vaughn Clarke had resigned.  On
this news, shares of Freddie Mac, which had closed at $59.87 on June 6,
2003, fell to $52 in midday trading on June 9, 2003.

Following these revelations, on June 11, 2003, numerous news sources
reported that the U.S. Attorney's office for Eastern Virginia confirmed that
the office was investigating Freddie Mac and that the SEC was also
investigating whether Freddie Mac deferred income to smooth out results in
future periods. Moreover, the SEC is reportedly investigating whether
Freddie Mac's CEO and CFO certified otherwise false financial statements in
violation of Sarbanes-Oxley. The full scope and contours of defendants'
concerted fraud continues to be revealed.

For more details, contact Fred Taylor Isquith, Gregory Nespole, Michael
Miske, Christopher Hinton, 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
Freddie Mac.


LEHMAN BROTHERS: Pomerantz Haudek Lodges Securities Suit in NY
--------------------------------------------------------------
Pomerantz Haudek Block Grossman & Gross LLP initiated a securities class
action against Lehman Brothers Inc. and its senior technology analyst
Michael E. Stanek on behalf of investors who purchased the common stock of
RealNetworks, Inc. (NasdaqNM:RNWK) during the period from July 1, 1999
through June 30, 2001, inclusive, in the United States District Court for
the Southern District of New York.

The lawsuit alleges that defendants issued false and misleading analyst
reports on RealNetworks in a bid to win or maintain lucrative banking and
advisory work from the Company.  As a result of defendants' false and
misleading statements, the market price of RealNetworks common stock was
artificially inflated, maintained or stabilized during the Class Period.

For more details, contact Andrew G. Tolan by Phone: 888-476-6529 ((888)
4-POMLAW) or by E-mail: agtolan@pomlaw.com


LEHMAN BROTHERS: Rabin Murray Lodges Securities Suit in S.D. NY
---------------------------------------------------------------
Rabin Murray & Frank LLP initiated a securities class action in the United
States District Court for the Southern District of New York on behalf of all
persons or entities who purchased or otherwise acquired RealNetworks, Inc.
securities (NasdaqNM:RNWK) between July 1, 1999 through June 30, 2001, both
dates inclusive.  Lehman Brothers Inc. and Michael E. Stanek are the named
as defendants in the Complaint.

The complaint alleges that defendants violated section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the
Securities and Exchange Commission (SEC).  In particular, the Complaint
alleges that defendants:

    (1) issued and maintained a ``Buy'' recommendation on
        RealNetworks securities without any rational economic
        basis;

    (2) failed to disclose that they were issuing and
        maintaining these recommendations to obtain investment
        banking business; and

    (3) concealed significant, material conflicts of interest
        that prevented them from providing independent and
        objective analysis.

The complaint alleges that defendant Michael E. Stanek, a senior analyst at
Lehman Brothers who covered RealNetworks, stated in a private email
regarding the Company that ``we (Lehman Brothers) bank these guys so I
always have to cut the benefit of the doubt.''  Defendant Stanek even issued
positive ratings on RealNetworks stock despite his private opinion that
``RNWK (RealNetworks) has to be a short big time.''

The complaint alleges that as a result of these false and misleading
statements and omissions of material fact, the price of RealNetworks
securities was artificially inflated throughout the class period causing
plaintiff and the other members of the Class to suffer damages.

On April 28, 2003, the SEC filed a complaint against Lehman Brothers for
violating the Exchange Act, and several NASD and NYSE rules by issuing false
and misleading analyst reports on companies, including RealNetworks.  Lehman
Brothers settled these charges for $50 million.

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 or visit the firm's Website: http://www.rabinlaw.com


RECOTON CORPORATION: Zwerling Schachter Files FL Securities Suit
----------------------------------------------------------------
Zwerling, Schachter & Zwerling, LLP initiated a securities class action in
the United States District Court for the Middle District of Florida, on
behalf of all persons or entities who purchased the common stock of Recoton
Corporation (OTC: RCOTQ.PK) between May 9, 2001 and August 19, 2002,
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 during the Class Period
thereby artificially inflating the price of Recoton common stock.

Specifically, the complaint alleges that defendants engaged in accounting
improprieties at its video game accessories division -- including "channel
stuffing," or shipping more products to retailers than could reasonably be
sold, improper revenue recognition, inflating assets and recording
insufficient reserves for obsolete inventory and returned products.  This
was done to boost Recoton's reported financial results so that the Company
could remain in compliance with its credit facility agreements, which
imposed restrictions on the Company's revenues, earnings, and assets.  While
engaging in these accounting improprieties, defendants were assuring
investors that the long-term outlook for Recoton's game accessories business
was bright.

On February 27, 2002, Recoton announced that it was no longer in compliance
with its lending agreements because of problems at its game accessories
business.  Then, on August 14, 2002, the Company announced that revenues for
its game accessories division would drop by approximately 28% on a
year-over-year basis because there was too much product already on the
shelves, and that the Company would take significant charges for obsolete
inventory and product discounts, as well as an unspecified write-down of
goodwill because of a permanent decline in the profitability of the game
accessories business.

Recoton further informed investors that there was doubt whether the Company
could continue as a going concern, and it offered no assurances that it
would be able to repay its debts.  The Company has since filed for
protection under Chapter 11 of the U.S. Bankruptcy Code.

For more details, contact Shaye J. Fuchs or Jayne Nykolyn by Phone:
1-800-721-3900 or by E-mail: sfuchs@zsz.com or jnykolyn@zsz.com.


SEARS ROEBUCK: Much Shelist Lodges Securities Fraud Suit in IL
--------------------------------------------------------------
Much Shelist Freed Denenberg Ament & Rubenstein, P.C. initiated a securities
class action in the United States District Court for the Northern District
of Illinois on behalf of purchasers of the 7% Subordinated Notes issued by
Sears Roebuck Acceptance Corporation (NYSE:SRJ) between June 21, 2002 and
October 17, 2002, inclusive.

The complaint alleges that Sears Acceptance, Sears, Inc. its parent, and
certain of Sears' officers and directors, violated Sections 10(b) of the
Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, and
Sections 11, 12(a) and 15 of the Securities Act of 1933, by issuing a series
of materially false and misleading statements to the market.  These alleged
misstatements had the effect of artificially inflating the price of the 7%
Notes.

According to the Complaint, defendants, throughout the class period,
represented that the earnings of Sears, the corporate parent of Sears
Acceptance, were growing strongly, driven by Sears' Credit and Financial
Products segment and that Sears would achieve earnings growth of 22% in 2002
over 2001.  In addition, SEC reports filed both Sears and Sears Acceptance
during the Class Period reported that provisions by Sears for uncollectible
accounts and in, its 2001 annual report represented that such reserves were
``adequate.''

These, and other statements detailed in the Complaint, were allegedly false
and misleading because, according to the Complaint, they did not disclose
that Sears' risk for uncollectible accounts had increased materially
throughout the class period and, in addition, that Sears was under-reserving
for its uncollectible accounts which inflated its earnings and balance
sheet.

On October 17, 2002, Sears reported in a press release that it will grow its
2002 earnings by 15%, rather than the 22% it reaffirmed as recently as ten
days previously, because of a ``$222 million increase in the domestic
provision for uncollectible accounts.''  In addition, according to the press
release, earnings for the third quarter were 26% less than the previous
year.  In reaction to the press release, the price of the 7% Notes fell
8.6%, from an October 16, 2002 close of $24.05 per share to an October 17,
2002 close of $21.99 per share -- on extremely heavy trading volume.

For more details, contact Carol V. Gilden by Phone:
(800) 470-6824 or by E-mail: investorhelp@muchshelist.com


                            *********

A list of Meetings, Conferences and Seminars appears in each
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Each Friday's edition of the CAR includes a section featuring news on
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according to independent researches, collectively face billions of dollars
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                           *********


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
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Copyright 2003.  All rights reserved.  ISSN 1525-2272.

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