/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/030701.mbx C L A S S A C T I O N R E P O R T E R Tuesday, July 1, 2003, Vol. 5, No. 128 Headlines ALL-STATE INDEMNITY: Faces Personal Injury Policyholders Lawsuit ATLANTIC DATA: Investors Commence Securities Lawsuit in MA Court BAYER AG: Reaches More Out-0f-Court Settlements Over Baycol Drug CALIFORNIA: High Court Rejects Sacramento Appeal on Access Suit HAWAII: Private School Sued For Denying Admission Based on Race INDIAN FUNDS: Judge "Pessimistic" About Indian Trust Reform Plan INDIANA: State's High Court Upholds Sex Offender Registry Law INFONET SERVICES: Asks CA Court To Dismiss Securities Fraud Suit KAOPECTATE LITIGATION: Makers Agree To Lower Drug's Lead Levels MONTANA: Consumer Office Investigates Company Selling Free Info NEW YORK: Judge Rejects Lawsuit Over No Child Left Behind Law PENNSYLVANIA: Judge Dismisses All Claims Against School District PENNSYLVANIA: Effort To End Public Defender Oversight Opposed PRINTCAFE SOFTWARE: Faces Securities Fraud Lawsuits in W.D. PA PSS WORLD: Asks FL Court To Dismiss Lawsuit For Securities Fraud PSS WORLD: Trial in Securities Suit Set October 2004 in M.D. FL PSS WORLD: Enters Mediation To Settle Overtime Wage Suits in FL TACO BELL: Worker Diagnosed with Hepatitis, Vaccination Urged New Securities Fraud Cases ADMINISTAFF INC.: Rabin Murray Commences Securities Suit in TX BLUE RHINO: Johnson & Perkinson Files Securities Suit in C.D. CA CENTRAL PARKING: Wolf Haldenstein Lodges Securities Suit in TN CREDIT SUISSE: Weiss & Yourman Lodges Securities Suit in S.D. NY CREE INC.: Bernard Gross Lodges Securities Fraud Suit in M.D. NC CRYO-CELL INTERNATIONAL: Weiss & Yourman Files Stock Suit in FL DAISYTEK INTERNATIONAL: Wechsler Harwood Files TX Stock Lawsuit DIVINE INC.: Pomerantz Haudek Lodges Securities Suit in N.D. IL EUNIVERSE INC.: Rabin Murray Lodges Securities Suit in C.D. CA INTERMUNE INC.: Charles Piven Lodges Securities Suit in N.D. CA LABORATORY CORPORATION: Cauley Geller Lodges NC Securities Suit LABORATORY CORPORATION: Charles Piven Files Stock Lawsuit in NC LABORATORY CORPORATION: Schiffrin & Barroway Files NC Stock Suit PRINTCAFE SOFTWARE: Charles Piven Lodges Securities Suit in PA RECOTON CORPORATION: Milberg Weiss Lodges Securities Suit in FL STOCKWALK INC.: Zimmerman Reed Launches Securities Lawsuit in MN ********* ALL-STATE INDEMNITY: Faces Personal Injury Policyholders Lawsuit ---------------------------------------------------------------- The law firm of Forizs & Dogali filed a class action against Allstate Indemnity Company and Deerbrook Insurance Company on behalf of Allstate's and Deerbrook's Florida personal injury protection (PIP) policyholders. The named plaintiff, Premier Open MRI, is a Jacksonville imaging center. The defendants are Illinois-based insurers who do business nationwide. The class plaintiffs are insureds of Allstate and Deerbrook who suffered automobile accidents and received magnetic resonance imaging (MRI) tests pursuant to orders of their treating physicians. The suit alleges that Allstate and Deerbrook have been systematically and routinely denying payment for MRIs under the PIP policies, contrary to the policies and Florida law. They assert that since sometime in 2002 Allstate and Deerbrook have been improperly second-guessing the medical need for MRIs, even though the MRIs were ordered by treating physicians and even though Allstate and Deerbrook are not licensed to practice medicine. Andy Dogali, attorney for the plaintiff, estimates that the number of insureds whose claims have been wrongfully denied numbers in the thousands. "Premier's experience with Allstate is typical of the average imaging center in the State of Florida," Mr. Dogali stated. "Applying that experience through more than a couple hundred imaging centers around the state, there are probably several thousand Florida policyholders who have received MRIs and then had Allstate and Deerbrook wrongfully refuse payment". The claim is substantial, as MRIs typically cost more than one thousand dollars each. The complaint seeks injunctive relief and damages for breach of contract. For more details, contact Andy Dogali by Mail: Forizs & Dogali, PL 4301 Anchor Plaza Parkway, Suite 300, Tampa FL by Phone: 813-289-0700 by E-mail: adogali@forizs-dogali.com or visit the firm's Website: http://www.forizs-dogali.com ATLANTIC DATA: Investors Commence Securities Lawsuit in MA Court ---------------------------------------------------------------- Atlantic Data Services, Inc. and each of its directors were served with a class action in Massachusetts State court by two of the Company's stockholders on behalf of all other stockholders of the Company. The complaint alleges, among other things, that the Company and its directors have breached or may have breached fiduciary duties owed to the Company's stockholders in connection with its May 5, 2003 announcement that the Company had received from certain of its directors and stockholders a preliminary expression of interest to engage in a going private transaction. BAYER AG: Reaches More Out-0f-Court Settlements Over Baycol Drug ---------------------------------------------------------------- Bayer AG announced that it has reached more than 1,000 out-of- court settlements over its cholesterol drug Baycol (also known as Lipobay), the Associated Press reports. The Company has paid out a total of $343 million without admitting liability. The Company recalled Baycol in August 2001, after it was linked to about 100 deaths worldwide and a rare muscle-wasting syndrome called rhabdomyolysis. Spokesman Michael Diehl told AP that the Company has already settled about 1,042 cases. As of last month, the company had paid $240 million for 785 settlements. On June 10, it posted on its Web site that it had settled 888 cases but didn't provide a sum. The Company also faces shareholder suits in the United States from people seeking damages for declines in the company's share price caused by Baycol. CALIFORNIA: High Court Rejects Sacramento Appeal on Access Suit --------------------------------------------------------------- The United States Supreme Court rejected an appeal by the City of Sacramento of a ruling that ordered the city to make all public sidewalks accessible to disabled Americans under a federal anti-discrimination law, Reuters reports. A class action, filed on behalf of the city's wheelchair-bound and vision-impaired citizens, cited claims under the disability law and the Rehabilitation Act of 1973, which authorizes funding of certain services for the disabled. The suit asserted that the city should modify and even rebuild its sidewalks and modify such obstacles as benches, fire hydrants, newspaper racks, mailboxes, trees and utility, traffic signal and telephone poles. The city should also get rid of roots and other protruding objects and to make sure sidewalks were level, the suit stated. A federal court ruled in favor of the city, but an appeals court ruled that the city sidewalks were covered by the Americans with Disabilities Act of 1990 and therefore have to be accessible. Sacramento appealed this decision, arguing it imposed a "staggering" financial burden on thousands of state and local governments. The US Justice Department urged the high court to reject the city's appeal, arguing that the law covered public sidewalks, Reuters reports. If sidewalks qualified as a public program, activity or service, then roads, bridges, buildings and other forms of physical infrastructure owned by state or municipal governments would be covered too, the city's lawyers told Reuters. A number of cities, the US Conference of Mayors and the National League of Cities supported Sacramento's appeal, saying huge amounts of money would have to be spent on construction and alterations. HAWAII: Private School Sued For Denying Admission Based on Race --------------------------------------------------------------- A student filed a suit against Kamehameha Schools in the United States District Court in Hawaii for denying his admission, allegedly because he isn't Hawaiian, the Associated Press reports. The suit alleges the school violated federal civil rights law by denying the student admission on the basis of race. The student applied twice to Kamehameha Schools, but was placed on a waiting list although the admissions office considered him a competitive applicant, his attorneys, John Goemans told AP. If the student was of Hawaiian ancestry, he would have been admitted, the lawsuit said. Atty. Goemans compared Kamehameha's admission policy to segregation in the South during the 1960s. "Like Gov. George Wallace of Alabama, the trustees of Kamehameha Schools are standing in the schoolhouse door to prevent the admission of qualified children simply because they have the wrong skin color and bloodline," Mr. Goemans said. A Kamehameha Schools official dismissed the student's charge. "Kamehameha believes that its admissions policy is consistent with applicable law," Constance Lau, chairwoman of Kamehameha's board of trustees told AP. "We intend to vigorously defend our policy of giving preference to applicants of Hawaiian ancestry, and we are confident that we will prevail." School officials said that the student body is made up of almost 5,000 Hawaiian and part-Hawaiian students from kindergarten through 12th grade statewide. They also said that non-Hawaiians are admitted if there are openings, after Hawaiians who meet the criteria have been offered admission. This policy was instituted to educate Hawaiian children, bringing about more social justice and equality, Pohai Ryan of Kamehameha Schools Alumni Association's Oahu chapter told AP. "Our people are not there yet, all the social data will show you that," she said. "Until all Hawaiians are educated, no one can justify changing it." INDIAN FUNDS: Judge "Pessimistic" About Indian Trust Reform Plan ---------------------------------------------------------------- US District Court Judge Royce C. Lamberth, in Washington, DC, said he is "very pessimistic" about the Interior Department's plan to reform the trust for American Indians, during a hearing about the Department's new reform plan, according to a report by Associated Press Newswires. Judge Lamberth wondered whether the plan will work any better than the government's previous one. Judge Lamberth had ruled in 1999, that the government had failed in its obligation to manage the individual trust accounts of hundreds of thousands of Indians. Judge Lamberth currently is overseeing a class action to determine how to reconcile the accounts and manage the system. Judge Lamberth interrupted testimony of Tulsan Ross Swimmer, who recently became special trustee in charge of managing Indian accounts. He wanted to question whether the government will have a new plan every time it gets a new Secretary of the Interior. "Where does this end?" said Judge Lamberth. Mr. Swimmer said the Interior Department is asking Congress for "a substantial increase" in money to implement the new plan. The lawsuit before Judge Lamberth is in its seventh year. It concerns the individual trust accounts held by Indians across the country, accounts which the government established in the late 19th century to hold money earned from oil and gas leases, as well as leases for grazing, mining, timber harvesting and other revenues generated from the lands owned by the Indians. Elouis Cobell, a member of the Blackfeet Tribe in Montana, and other Indians filed a class action in 1996, claiming gross mismanagement of the royalties received and of the trust accounts themselves had cost Indians billions of dollars. The Indians claim more than 500,000 accounts are at issue, although the government puts the number closer to 300,000. Attorneys for Ms. Cobell, and other Indians as well, want Judge Lamberth to take the trust fund out of government control and give it to a private receiver. Meanwhile, the government is trying to convince Judge Lamberth it can manage the system. The Interior Department says the new plan is a major reorganization to increase accountability and efficiency in the trust fund system. The Bureau of Indian Affairs and the Office of Special Trustee have been holding briefings at BIA offices across the country to explain the plan. Mr. Swimmer, a former head of the BIA and once chief of the Cherokee Nation, has described the plan as calling for more personalized attention from the government to trust fund account holders. The new plan, he said, also requires more training of government employees and more focus from workers who might have had duties not related to the accounts. INDIANA: State's High Court Upholds Sex Offender Registry Law ------------------------------------------------------------- The Indiana Supreme Court recently upheld the constitutionality of Indiana's sex offender registry law, including the posting of addresses and pictures of convicted sex offenders on the Internet, the Associated Press Newswires reports. The Indiana Civil Liberties Union had appealed a class action to the court arguing the sex offender registry law is unconstitutional. The Indiana Civil Liberties Union (ICLU) had originally brought a class action on behalf of a man, known only as "John Doe" in court papers, who was convicted several years ago of fondling a minor. Although the US Supreme Court, in March, had ruled unanimously that photos of convicted sex offenders could be posted on the Internet, in a Connecticut case, the ICLU argued that the Indiana Constitution provides more privacy protection than does the US Constitution, including rights regarding a reputation. The ICLU contended that Indiana's sex offender registry law would harm the reputation of all past offenders by deeming them forever dangerous, without any legal recourse to show they are not and should no longer be on the registry. At a hearing before the High Court last month, lawyers for the state argued that the registry, including the photos of the former offenders, met constitutional muster because it helps protect the public. In its ruling the Indiana Supreme Court said, "even if Doe could prove that he is not likely to be currently dangerous, the Legislature has decided that the registry information of all sex offenders, currently dangerous or not, must be publicly disclosed." In January, the High Court had issued a stay preventing the sheriffs from implementing the law while the appeal was pending. Attorney General Steven Carter said that the ruling clears the way for county sheriffs to upgrade the registry and make it accessible to the public once more. INFONET SERVICES: Asks CA Court To Dismiss Securities Fraud Suit ---------------------------------------------------------------- Infonet Services Corporation asked the United States District Court for the Central District of California to dismiss the consolidated securities class action filed against it on behalf of public investors who purchased the Company's securities during the period from December 16, 1999 through August 7, 2001. The suit also names as defendants: (1) Jose A. Collazo, Chief Executive Officer and Chairman, (2) Akbar H. Firdosy, Chief Financial Officer, (3) Douglas Campbell, (4) Eric M. de Jong, (5) Morgan Ekberg, (6) Masao Kojima, (7) Joseph Nancoz, (8) Rafael Sagrario, (9) KDDI Corporation, (10) KPN Telecom, (11) Swisscom AG, (12) Telefonica International Holding B.V., (13) Telia AB, (14) Telstra Corporation Ltd, (15) Merrill Lynch & Co., (16) Warburg Dillon Read LLC, (17) ABN AMRO Inc., (18) Goldman Sachs & Co., (19) Lehman Brothers, Inc. and (20) Salomon Smith Barney Inc. The consolidated suit alleges that defendants made misrepresentations and omissions regarding the AUCS channel in the Company's Form S-1 registration statement and the accompanying prospectus for our initial public offering of Class B common stock and in other statements and reports during the class period. The plaintiffs assert counts against the Company and its officers and directors for violations of Sections 11, 12 and 15 of the Securities Act of 1933 and violations of Section 20(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The plaintiffs have requested a judgment determining that the lawsuit is a proper class action, awarding compensatory damages and/or rescission, awarding costs of the lawsuit and awarding any other relief. All of the defendants have filed motions to dismiss the Consolidated Class Action Complaint, which are set for hearing on July 21, 2003. KAOPECTATE LITIGATION: Makers Agree To Lower Drug's Lead Levels --------------------------------------------------------------- Makers of the anti-diarrhea medicine Kaopectate entered a settlement with the state of California to slash its lead levels, the Associated Press reports. The medicine's older formula - still sold in caplet form - contains 25 micrograms of lead in every adult dose, or 50 times the level at which California requires a warning label. Pharmacia, the maker of Kaopectate, said in a written statement that its product "has been used safely and effectively for close to 50 years," and that it entered into the settlement "in the interest of avoiding costly and unnecessary litigation," AP reports. The state, under Attorney General William Lockyer, sued in 2001 over the drug's lead levels. The Company began reformulating Kaopectate, removing 80 percent of the lead from Kaopectate liquid, now sold in an hourglass-shaped bottle with a label that boasts it as "new and improved." Kaopectate caplets have not yet been reformulated. A substance called attapulgite clay is the key ingredient in Kaopectate. The Company agreed to completely remove attapulgite, which contains large amounts of lead and replace it with bizmuth subsalicylate, found in the competing product Pepto-Bismol. San Francisco Superior Court Judge Richard Kramer approved the settlement, under which the Company agreed to pay $1 million in civil penalties under the settlement. The Company will end up paying much less if it moves quickly to remove as much as 95 percent of the lead from Kaopectate, the nation's largest- selling diarrhea remedy. Environmentalists, consumer groups and state Attorney General Bill Lockyer hailed the settlement as a victory for children, who can suffer brain damage even from low levels of lead. "Hundreds of thousands of consumers in California and across the country, including pregnant women and children, ingested Kaopectate and generic versions for years without knowing the product contained enough lead to pose a health risk," Atty. Gen. Lockyer told AP. MONTANA: Consumer Office Investigates Company Selling Free Info --------------------------------------------------------------- Montana's Office of Consumer Protection started a probe of a company attempting to sell program applications and information regarding the state's Children's Health Insurance Program (CHIP), information that's already free, state officials said, Montanaforum.com reports. A company with a Great Falls mailing address is trying to sell information for $14.95 when the information is free at many Montana locations. The state's CHIP program serves low-income parents who do not have health coverage for their children. "People do not need to pay for this information," said Mary Noel, who oversees CHIP for the Montana Department of Public Health and Human Services told Montanaforum.com. "In fact, the information received for $14.95 is the same information we have available on our Web site." The Company has advertised in two Montana newspapers, boasting of "no-cost insurance for children" under the name Children's Health Coverage Advisers. The advertisement also lists a toll- free telephone number. A newspaper reporter who called the number was directed by a taped voice to send $14.95 to the address listed in the advertisement in order to receive information, the Montanaforum.com reports. No live person was available to comment. In a letter to the state's Consumer Protection Office, Mr. Noel wrote that she was "dismayed" that someone may be taking advantage of low-income families who already are financially stressed. In addition to being available via the Internet, the state's free CHIP information also is accessible from the state CHIP office in Helena by calling, toll-free, 1-(877) 543-7669. NEW YORK: Judge Rejects Lawsuit Over No Child Left Behind Law ------------------------------------------------------------- Federal Judge John Koeltl threw out a class action brought by New York City parents trying to move their children out of bad schools into better ones, the New York Daily News reports. Judge Koeltl ruled that the parents had no legal standing, under the No Child Left Behind law, to sue the Education Department of New York City to make the city transfer or tutor students as required by that federal law. Instead, it is up to federal officials to make sure school districts comply with the 2002 law, requiring them to let students in failing schools transfer to better schools or get free tutoring after class, the judge said in his ruling. The class action brought by two Harlem mothers, became the first lawsuit of its kind in the nation. Parents' attorney, Charles King, said he would appeal the decision. Lisa Grumet, the lawyer representing Mayor Bloomberg and the Education Department, said the city was still reviewing the decision last night. A US Education Department source said the government could force school districts to comply by threatening to withhold federal aid - $600 million in New York City's case. PENNSYLVANIA: Judge Dismisses All Claims Against School District ---------------------------------------------------------------- Senior US District Court Judge Maurice Cohill Jr. has ended more than three decades of court battles in a landmark segregation case, when he released the Woodland Hills School District from judicial oversight, the Pittsburg Post-Gazette reports. Judge Cohill said, in a 21-page opinion, that the district has complied "in good faith" with the requirements he has imposed and he has concluded that "the vestiges of past discrimination have been remedied." The ruling means, among other things, that the 32-year-old case is over and that the claims that led to it are dismissed. The order follows upon Judge Cohill's July 2000 ruling that largely removed the district from federal oversight. The judge said then that Woodland Hills had met most of the requirements the court imposed after the district was created in 1981, in the wake of a 10-year battle over race discrimination. In his July 2000 ruling, Judge Cohill did not set the district entirely free; he kept in place oversight provisions for curriculum, assessment and instruction. Last year, school district and state officials asked the judge to declare Woodland Hills "unitary," or independent, and Judge Cohill held a hearing on the issue last month. The Woodland Hills case originated in 1971, when parents of black students complained that the state had created a racially segregated district when it formed the General Braddock District to serve Braddock, Rankin and North Braddock, all areas of Pittsburg. Part of the parents' class action said the General Braddock District had been created as a "dual system" of inferior education for blacks. Ten years later, the then- presiding federal judge, Judge Gerald Weber, ordered creation of the Woodland Hills District, which merged General Braddock with the predominantly white districts of Churchill Area, Edgewood, Swissvale and Turtle Creek. The new district was placed under federal supervision and has remained so ever since. In 1999, school officials asked that supervision be lifted, which led to Judge Cohill's 2000 decision. The main point of contention at that time was the math curriculum. The judge, in 2000, said the district had to get rid of a dual system of teaching math, in which many more black students than white ones ended up in lower-level courses. Judge Colhill then ordered the district to create one math curriculum for everyone. The district said in court papers that that has been done. Judge Colhill agreed and the result was his 21-page decision terminating the judicial oversight. Although lawyers for the original plaintiffs argued that the dual system was not gone and that the district continued to "track" students into courses based on race, Judge Cohill disagreed and sided with the school district, which claimed all vestiges of a dual school system based on race had been eradicated from the math curriculum. "There is nothing to suggest that the district's approach to this issue is in any way guided by race, or that the selection process (for determining who is ready to take algebra before ninth grade) is in any way arbitrary or discriminatory," said Judge Colhill. Since the oversight provisions for assessment and instruction in the district, which had been continued in his 2000 ruling, were directly related to the math curriculum, the judge said these provisions could be lifted as well. As part of his 21-page opinion, he said he had looked at the district's overall compliance to determine whether officials have shown "good faith" in trying to abide by his orders, and found this to be the case. "The Woodland Hills School District is unitary in all of its operations, facilities, programs, personnel and curricula, and offers its education benefits equally to all students," Judge Colhill concluded. In his recent opinion, terminating the federal oversight, Judge Cohill singled out for special comment Judge Weber, who was the first presiding judge for judicial oversight of Woodland Hills, and who died in 1989. "It was he who suffered the slings and arrows which all too often accompany these types of cases," said Judge Cohill. "His courageous oversight, despite threats to his life, provided the framework for the successful termination of the case which we resolve here today." PENNSYLVANIA: Effort To End Public Defender Oversight Opposed ------------------------------------------------------------- The American Civil Liberties Union (ACLU) asked that Allegheny County be held in contempt of court for violating a consent decree governing the public defender's office, while the county asked a judge to lift the decree, the Associated Press Newswires reports. The ACLU said scores of defendants continue to complain about the poor representation given them by the public defender's office. Many said their first meetings with a public defender took place within minutes of appearing before a judge. As part of a 1998 settlement with the ACLU, county officials agreed in a consent decree to nearly double the number of public defenders and almost triple support staff over four years to improve legal representation. The consent decree arose out of a class action brought by the ACLU on behalf of plaintiffs who spent 82 days in jail before being allowed to plead guilty to a drunk driving charge. Allegheny County Solicitor Charles McCullough said the county has beefed up the staff and is in compliance with every part of the consent decree. He charged the ACLU with a financial motive for trying to prolong the case, saying, "This case has become an annuity for the ACLU." The two sides have met numerous times before a mediator to discuss staffing and procedural changes at the defender's office, and to discuss, as well, the $200,000 in legal fees the ACLU said it is owed for monitoring compliance. The consent decree will expire on December 31, if a judge rules the county has complied. Witold Walczak, the ACLU's legal director in Pittsburg, acknowledged the defender's office has met or is close to meeting staffing requirements and that the office is much better than in 1998, especially in representation of defendants charged with murder. According to the ACLU, the structure of the defender's office is flawed and top officials have failed to monitor lawyers who do shoddy work. The ACLU's motion seeking that Allegheny County be held in contempt of court for violating the 1998 consent decree, claims a number of public defenders have failed to investigate cases within the time proscribed by the consent decree; and that public defenders have not sought assistance of experts as required, as well as failing to prepare for hearings. "The right to counsel means more than just a warm body with a law degree sitting next to you when you walk into a courtroom," said Mr. Walczak. "It includes the right to an attorney who has the time and the resources to prepare an adequate defense." The county's petition to have oversight lifted lists the 33 points of the consent decree that have been met. No hearing date has been set. PRINTCAFE SOFTWARE: Faces Securities Fraud Lawsuits in W.D. PA -------------------------------------------------------------- Printcafe Software, Inc. faces several securities class actions charging it with making false and misleading statements in connection with its initial public offering and subsequent press releases through October 22, 2002. The suit is pending in the United States District Court for the Western District of Pennsylvania and also names as defendants Marc Olin, Chairman of the Board and Chief Executive Officer, and Joseph Whang, Chief Financial Officer and Chief Operating Officer. In a statement, the company said, "We believe the lawsuit is completely without merit and we intend to vigorously defend against it." Printcafe has entered into a merger agreement with Electronics for Imaging, Inc. (EFI) (Nasdaq: EFII) which provides for the acquisition of Printcafe for $2.60 per share for each outstanding Printcafe share. The merger is expected to close during the third quarter of 2003. Joseph Cutts, CFO of EFI said "Printcafe has informed us of this lawsuit, and we have not changed our plans for the merger as a result of the filing of this complaint." PSS WORLD: Asks FL Court To Dismiss Lawsuit For Securities Fraud ---------------------------------------------------------------- PSS World Medical, Inc. asked the United States District Court for the Middle District of Florida, Jacksonville Division to dismiss the consolidated securities class action filed against it and certain of its current officers and directors. The plaintiff initially alleged, 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 were based upon a decline in the Company's stock price following announcement by the Company in May 1998 regarding the Gulf South Medical Supply, Inc. merger, which resulted in earnings below analyst's expectations. By order dated December 18, 2002, the court granted the Company's motion to dismiss the plaintiff's second amended complaint with prejudice with respect to the Section 10(b) claims. 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. The Company moved to dismiss the third amended complaint. Discovery has not yet begun, pending the outcome of the motion to dismiss. There can be no assurance that this litigation will be ultimately resolved on terms that are favorable to the Company. PSS WORLD: Trial in Securities Suit Set October 2004 in M.D. FL --------------------------------------------------------------- Jury trial in the securities class action filed in the United States District Court for the Middle District of Florida against PSS World Medical, Inc. and certain present and former directors and officers is set for October 18, 2004. The amended complaint 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 indeterminate 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. The court granted plaintiff's motion for class certification on November 14, 2002. 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 amended complaint 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: Enters Mediation To Settle Overtime Wage Suits in FL --------------------------------------------------------------- PSS World Medical, Inc. has entered second mediation for the securities class action filed against it in the United States Court for the Middle District of Florida, Jacksonville Division, by three of its employees. The plaintiffs allege 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 to recover back pay, interest, costs of suit, declaratory and injunctive relief, and applicable statutory penalties. On February 21, 2003, the court conditionally allowed the case to proceed as a collective action under the Fair Labor Standards Act. A total of 63 plaintiffs are now parties to the action. Two of the three original named plaintiffs also brought, but subsequently have settled, 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. Limited discovery is underway following a mediation on May 20, 2003, in preparation for a second mediation scheduled for August 13, 2003. However, there can be no assurance that this litigation will be ultimately resolved on terms that are favorable to the Company. TACO BELL: Worker Diagnosed with Hepatitis, Vaccination Urged ------------------------------------------------------------- Los Angeles County health officials urged anyone who ate at a Taco Bell restaurant in Alhambra a few weeks ago to get vaccinated for hepatitis A after a worker was diagnosed with the liver disease, the Associated Press reports. Health officials learned of the diagnosis Thursday and urged anyone who at a restaurant on Commonwealth Avenue on June 12 or 13. The vaccination only takes effect if received within 14 days of exposure. Officials said the risk of contracting the disease was low and the immune globulin vaccinations were precautionary. "We have no way of knowing if this person contaminated the food," Laurene Mascola, chief of Los Angeles County's Acute Communicable Disease Control Program told AP. Hepatitis A symptoms include yellowing of eyes and skin, nausea, appetite loss, vomiting, stomach cramps, dark-colored urine and fatigue. A call to Taco Bell headquarters in Louisville, Ky., on Friday was referred to the Irvine public affairs department, whose phone was answered with a recording before business hours, the Associated Press reports. New Securities Fraud Cases ADMINISTAFF INC.: Rabin Murray Commences Securities Suit in TX -------------------------------------------------------------- Rabin Murray & Frank LLP initiated a securities class action in the United States District Court for the Southern District of Texas on behalf of all persons or entities who purchased or otherwise acquired Administaff, Inc. securities (NYSE:ASF) between April 3, 2001 to July 31, 2002, both dates inclusive. The Company, Paul J. Sarvadi, and Richard G. Rawson are the named as defendants in the suit. 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. In particular, the complaint alleges that during the Class Period defendant failed to disclose that Administaff, a personnel management company, had inadequate and deficient pricing and billing systems and was incorrectly calibrating pricing for clients that experienced declines in average payroll cost per worksite employee. Furthermore, the Complaint alleges that defendants incorrectly matched the price and cost for health insurance on new and renewing client contracts. In an attempt to maintain Administaff's coveted status as a Fortune 500 company, defendants allegedly improperly recognized revenue, in violation of Generally Accepted Accounting Principles, by failing to net Administaff's worksite employee payroll costs against revenues. On August 1, 2002, before the market opened, defendants shocked the investing public when it announced Administaff's earnings shortfall for its second quarter ended June 30, 2002, reporting "a net loss and diluted net loss per share of $3.2 million and $0.11." In response to this, in February 2003, defendants announced that the SEC commenced an inquiry into Administaff's accounting practices with respect to revenue recognition. Pursuant to the SEC inquiry, Administaff changed its accounting policies and applied such changes retroactively. As a result of these false and misleading statements and omissions of material fact, the complaint alleges that the price of Administaff securities was artificially inflated throughout the Class Period, causing plaintiff and other members of the Class to suffer damages. For more details, contact Eric J. Belfi or Sharon Lee by Phone: (800) 497-8076 or (212) 682-1818 by Fax: (212) 682-1892 by E- mail: email@rabinlaw.com or visit the firm's Website: http://www.rabinlaw.com BLUE RHINO: Johnson & Perkinson Files Securities Suit in C.D. CA ---------------------------------------------------------------- Johnson & Perkinson initiated a securities class action in the United States District Court for the Central District of California on behalf of purchasers of Blue Rhino Corporation (NASDAQ:RINO) securities during the period between August 15, 2002 and February 5, 2003. 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 James Conway by Phone: 888/459-7855 or by E-mail: email@jpclasslaw.com CENTRAL PARKING: Wolf Haldenstein Lodges Securities Suit in TN -------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class action in the United States District Court for the Middle District of Tennessee, on behalf of all persons who purchased the securities of Central Parking Corporation (NYSE: CPC) between November 4, 2002 and February 13, 2003, inclusive, against the Company and certain of its officers. The complaint alleges that throughout the class period, defendants issued a series of false and misleading statements to the investing public. The defendants failed to disclose several adverse facts, including: that the Company was unable to sufficiently record and document its financial results due to its inadequate internal controls. The complaint further alleges that Central Parking was materially understating its bad debt reserve and its accounts payable. Consequently, the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles and were thereby materially false and misleading. On February 14, 2003, Central Parking announced that it would be taking a charge to increase its bad debt reserve and that it would be taking a charge to increase its accounts payables. Following this announcement, the price of Central Parking common stock decreased from $15.82 on February 13, 2003 to a close of $12.31 on February 14, 2003, or a one-day decline of over 22%, on over seven times normal trading volume. For more details, contact Fred Taylor Isquith, Gustavo Bruckner, 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 Central Parking. CREDIT SUISSE: Weiss & Yourman Lodges Securities Suit in S.D. NY ---------------------------------------------------------------- Weiss & Yourman initiated a securities class action against Credit Suisse First Boston in the United States District Court for the Southern District of New York, on behalf of on behalf of purchasers of Winstar Communications, Inc. (WCIIM.PK, WCIIO.PK, WCIIP.PK, WCIIQ.PK) between January 5, 2001 and April 5, 2001. The complaint charges defendants with violations of the Securities Exchange Act of 1934. It alleges that defendants issued materially false and misleading statements which resulted in plaintiffs purchasing Winstar securities during the class period at artificially inflated prices. For more details, contact David C. Katz, Mark D. Smilow, or James E. Tullman, by Mail: The French Building, 551 Fifth Avenue, Suite 1600, New York, New York 10176 by Phone: 888/593-4771 or 212/682-3025 or by E-mail: info@wynyc.com CREE INC.: Bernard Gross Lodges Securities Fraud Suit in M.D. NC ---------------------------------------------------------------- The Law Offices of Bernard M. Gross, PC initiated a securities class action in the United States District Court for the Middle District of North Carolina on behalf of purchasers of the securities of Cree, Inc. (NasdaqNM:CREE) during the period between January 14, 2000 through and including June 13, 2003. The action is pending in the United States District Court, Middle District of North Carolina, against the Company and: (1) Fred N. Hunter, Chairman of the Board and founder, (2) Cynthia B. Merrell, Chief Financial Officer and Treasurer, (3) Dolph W. Von Arx, Director, Member of the Audit, Compensation & Audit Committees, (4) Charles Swoboda, President, Chief Executive Officer, former Chief Operating Officer, and Director, (5) Walter L. Robb, Director; and (6) John W. Palmour, Director and Executive Vice President The complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the class period, thereby artificially inflating the price of Cree securities. The complaint alleges, among other things, that on January 14, 2000, the start of the class period, Cree filed a prospectus and registration statement in connection with the offering of 2,860,000 shares of common stock. The "Use Of Proceeds" Section of the prospectus failed to disclose that Cree would invest $5 million of the offering proceeds in World Theatre, Inc., a speculative start-up company in which Eric Hunter, a brother of the Company's Chairman and Chief Executive Officer, was a substantial shareholder. In addition, in December 2000, Cree bought the UltraRF division from Spectrian Corporation for approximately 908,000 shares of Cree common stock and $30 million in cash. Cree had entered into a two-year supply contract with Spectrian that would generate $58 million in revenue for Cree but Cree failed to disclose that the Spectrian supply contract only obligated Spectrian to purchase product from Cree if Cree were able to sell at the best available commercial price for particular products; otherwise, Spectrian was free to purchase from other vendors. Despite continued losses that the UltraRF division sustained, Cree failed to timely write down the division's goodwill, which the Company persisted in valuing at $81.7 million. The full extent of the Company's financial statement fraud was not revealed until June 13, 2003. On that date, the Company revealed that it had been sued by Eric Hunter, a substantial Cree shareholder, and a brother of Cree Chairman, Fred Neal Hunter. The lawsuit revealed, among other things, that the Company had altered corporate books and records to mislead auditors and investors as to material facts to boost executive compensation, filed public documents that omitted significant material facts in connection with the Company's secondary stock offerings, entered into an undisclosed long-term requirements contract with C3 Corporation that required that company to accept more shipments than demand would warrant, of silicon carbide crystals for the manufacture of moissanite gems solely to artificially inflate Cree's revenues and share price. As a result of this news, the Company's share price dropped 18.5%. For more details, contact Susan R. Gross or Deborah R. Gross by Mail: 1515 Locust Street, 2nd Floor, Philadelphia, PA 19102 by Phone: 866-561-3600 (toll-free) or 215-561-3600 by E-mail: susang@bernardmgross.com or debbie@bernardmgross.com or visit the firm's Website: http://www.bernardmgross.com CRYO-CELL INTERNATIONAL: Weiss & Yourman Files Stock Suit in FL --------------------------------------------------------------- Weiss & Yourman initiated a securities class action against Cryo-Cell International, Inc. (NASDAQ: CCELE) and certain of its officers in the United States District Court for the Middle District of Florida on behalf of purchasers of Cryo-Cell securities between March 16, 1999 and May 20, 2003. The complaint charges defendants with violations of the Securities Exchange Act of 1934. It alleges that defendants issued materially false and misleading statements which resulted in plaintiffs purchasing Cryo-Cell securities during the class period at artificially inflated prices. For more details, contact: David C. Katz, James E. Tullman, and/or Mark D. Smilow, by Mail: The French Building, 551 Fifth Avenue, Suite 1600, New York, New York 10176 by Phone: 888/593-4771 or 212/682-3025 or by E-mail: info@wynyc.com DAISYTEK INTERNATIONAL: Wechsler Harwood Files TX Stock Lawsuit --------------------------------------------------------------- Wechsler Harwood LLP initiated a securities class action in the United States District Court for the Eastern District of Texas on behalf of all persons or entities who purchased or otherwise acquired Daisytek International Corporation securities (NasdaqNM:DZTK) during the period from November 9, 2001 to April 28, 2003, both dates inclusive. The complaint names James R. Powell, Ralph Mitchell, Peter Wharf as defendants. The complaint alleges that defendants violated the Securities Exchange Act of 1934 by making a series of materially false and misleading statements concerning Daisytek's financial results during the class period that artificially inflated the price of Daisytek securities. In particular, the complaint alleges that defendants improperly accounted for uncollectible accounts receivable and vendor rebates receivable in order to inflate the Company's financial results. Because of their misconduct, the Individual Defendants were able to sell their personal holdings in the Company's stock for over a million dollars in proceeds. Additionally, the complaint alleges that during the class period, the Individual Defendants permitted the Company to enter into a $200 million credit facility, raise additional capital, and caused Daisytek to benefit economically from their wrongful course of conduct. On April 28, 2003, Daisytek announced that it expected significant losses as a result of a write-down of customer and vendor receivables on inventory and large restructuring charges. Subsequently, Daisytek announced the resignation of both its Chief Executive Officer and Chief Financial Officer. For more details, contact Craig Lowther by Mail: 488 Madison Avenue, 8th Floor, New York, New York 10022 by Phone: (877) 935-7400 or by E-mail: clowther@whesq.com DIVINE INC.: Pomerantz Haudek Lodges Securities Suit in N.D. IL --------------------------------------------------------------- Pomerantz Haudek Block Grossman & Gross LLP initiated a securities class action filed in the United States District Court for the Northern District of Illinois (Eastern Division), against four Directors and/or Officers of Divine, Inc. (Other OTC:DVINQ.PK), on behalf of investors who, during the period between November 12, 2001 and February 18, 2003, inclusive either purchased or otherwise acquired Divine common stock, or exchanged Viant Corporation common stock for Divine shares in the merger of Viant and Divine, which was completed on or about September 27, 2002. The suit names as defendants: (1) Andrew J. Filipowski, (2) Michael P. Cullinane, (3) Alexander Szlam, and (4) Jude M. Sullivan The suit alleges the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing a series of material misrepresentations to the market, which served to artificially inflate the price of Divine securities. It is alleged that as Divine's cash position deteriorated in late 2002, defendants caused Divine to cannibalize one of its acquisitions, RoweCom. In the 4th Q of 2002, defendants caused RoweCom to collect and transfer to Divine $65 million in pre-payments from RoweCom's customers and to divert at least $73.7 million in funds from RoweCom's accounts to Divine between April 2002 and December 2002. As a result, RoweCom was forced into bankruptcy in January 2003 and its estate filed a fraudulent transfer action against Divine at the same time in the bankruptcy proceeding. As alleged in the complaint, defendants failed to disclose and misrepresented that: (i) by purchasing income streams with artificially inflated stock, defendants were building a financial house of cards that would crumble once the pool of willing investors and acquisition targets willing to sell to Divine on the terms Divine's management sought dried up; (ii) by collecting $65 million in prepayments from customers of RoweCom in late 2002 with no intention of completing their sales and by diverting over $73 million in cash from RoweCom's accounts, defendants were destroying the Company's largest source of revenue and subjecting the Company to great potential civil and criminal liability; and (iii) by operating the Company and its subsidiaries without adequate financial and internal controls, defendants lacked a reasonable basis to project profitability and to report accurate financial results and caused the Company to engage in criminal conduct. 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 had determined to seek alternatives to protect the value and viability of its operations." As a result, Divine advised that it engaged Broadview International LLC as advisors to assist in exploring strategic options, which could include asset divestitures, comparable transactions, and/or the filing of a voluntary petition under Chapter 11 of the United States Bankruptcy Code. As a result of this announcement, the price of Divine stock fell dramatically. Thereafter, Divine was forced to seek protection under the federal bankruptcy statutes and according to its bankruptcy filings, the Company then had only approximately $25 million in cash left on hand. On March 4, 2003, the Nasdaq Stock Market delisted Divine's stock and defendants disclosed that a federal grand jury was investigating Divine's receipt of the $65 million in pre-payments. For more details, contact Andrew G. Tolan by Phone: 888-476-6529 ((888) 4-POMLAW) or by E-mail: agtolan@pomlaw.com EUNIVERSE INC.: Rabin Murray Lodges Securities Suit in C.D. CA -------------------------------------------------------------- Rabin Murray & Frank LLP initiated a securities class action in the United States District Court for the Central District of California, on behalf of all persons or entities who purchased or otherwise acquired eUniversie Inc. securities (NasdaqSC:EUNI) between July 31, 2002 through May 5, 2003, both dates inclusive. The suit names as defendants the Company and: (1) Brad D. Greenspan, and (2) Joseph L. Varraveto 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 during the class period defendants failed to disclose and/or misrepresented that the Company had materially overstated its revenues by incorrectly processing transactions through the Company's accounting system. On May 6, 2003, before the market opened, defendants shocked the investing public when it announced that it would restate its financial statements for the second and third quarters, and possibly the first quarter, of fiscal 2003, and that investors should not rely on eUniverse's previously issued financial statements pending the restatement. Following the announcement, the Nasdaq Small Cap market halted trading of eUniverse stock. The Company later announced that the SEC had commenced an inquiry into the restatement, and that a Director on the Company's Audit Committee had resigned. As a result of these false and misleading statements and omissions of material fact, the Complaint alleges that the price of eUniverse securities was artificially inflated throughout the class period, causing plaintiff and other members of the class to suffer damages. For more details, contact Eric J. Belfi or Sharon Lee by Phone: (800) 497-8076 or (212) 682-1818 by Fax: (212) 682-1892 by e- mail: email@rabinlaw.com or visit the firm's Website: http://www.rabinlaw.com INTERMUNE INC.: Charles Piven Lodges Securities Suit in N.D. CA --------------------------------------------------------------- The Law Offices Of Charles J. Piven, PA initiated a securities class action on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of InterMune, Inc. (NasdaqNM:ITMN) between January 6, 2003 and June 11, 2003, inclusive. The case is pending in the United States District Court for the Northern District of California against the Company and its Chief Executive Officer. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Charles J. Piven by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by Phone: 410-986-0036 or by E-mail: hoffman@pivenlaw.com LABORATORY CORPORATION: Cauley Geller Lodges NC Securities Suit --------------------------------------------------------------- Cauley Geller Bowman & Rudman, LLP initiated a securities class action in the United States District Court for the Middle District of North Carolina, on behalf of purchasers of Laboratory Corporation of America Holdings (NYSE: LH) publicly traded securities during the period between February 13, 2002 and October 3, 2002, inclusive. The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between February 13, 2002 to October 3, 2002. The complaint alleges that by the start of the class period LabCorp was being adversely impacted by a host of undisclosed negative trends, which were causing the Company to experience declining revenues and earnings. In particular the complaint alleges that LabCorp failed to disclose and/or misrepresented the following adverse facts, among others: (1) that LabCorp was currently experiencing a material decline in growth rates for routine/core testing volumes; (2) that LabCorp's marketing and relationship management staff were inadequate and could not effectively compete with local and regional clinical laboratory services; (3) that the service levels, including price, turnaround time and quality of service, of the Company's remote testing facilities including the Company's STAT laboratories and patient care facilities, among others, were inadequate and could not effectively compete with local and regional clinical laboratory services; (4) that the types of clinical laboratory services available through the Company's remote testing facilities were limited and could not effectively compete with local and regional clinical laboratory services; and (5) based on the foregoing, defendants' opinions, projections and forecasts concerning the Company and its operations were lacking in a reasonable basis at all times. Rather than disclose the truth about the Company's weakening condition and jeopardize its ability to complete acquisitions, defendants issued a series of materially false and misleading statements to the market in order to inflate the price of LabCorp common stock and enable the Company to use its stock as currency for a material acquisition. In addition, prior to the disclosure of the true facts about the Company, LabCorp insiders sold more than $29 million of their personally-held LabCorp common stock to the unsuspecting public. The truth about LabCorp was partially revealed, when on October 3, 2002, defendants announced that LabCorp failed to meet revenue and earnings guidance for the third quarter ended September 30, 2002, as well as the remainder of 2002, due to a revenue shortfall, primarily, in the South and Southeast regions of the US stemming from a material loss of routine/core testing volumes among independent physicians. Subsequently, on October 4, 2002, Mr. MacMahon admitted that defendants were aware that the Company was losing sales to local and regional labs and had attempted, unsuccessfully, to "remedy the problem" as early as May 2002. Following these announcements, the price of LabCorp common shares collapsed, losing over 34% of their value in one day of trading to close at $21.68 per share on October 4, 2002, and falling over 58% from the class period high of $51.98 per share reached on or about May 10, 2002. For more details, contact Samuel H. Rudman, David A. Rosenfeld, Jackie Addison, Heather Gann or Candace Randle by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 by Fax: 1-501-312-8505 or by E-mail: info@cauleygeller.com LABORATORY CORPORATION: Charles Piven Files Stock Lawsuit in NC --------------------------------------------------------------- The Law Offices Of Charles J. Piven, PA initiated a securities class action on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of Laboratory Corporation of America Holdings (NYSE:LH) between February 13, 2002 and October 3, 2002, inclusive. The case is pending in the United States District Court for the Middle District of North Carolina against the Company and certain of its executive officers. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Charles J. Piven by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by Phone: 410-986-0036 or by E-mail: hoffman@pivenlaw.com LABORATORY CORPORATION: Schiffrin & Barroway Files NC Stock Suit ---------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the Middle District of North Carolina on behalf of all purchasers of the common stock of Laboratory Corporation Of America Holdings (NYSE:LH) from February 13, 2002 through October 3, 2002, inclusive. The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between February 13, 2002 to October 3, 2002. The complaint alleges that by the start of the class period LabCorp was being adversely impacted by a host of undisclosed negative trends, which were causing the Company to experience declining revenues and earnings. In particular the complaint alleges that LabCorp failed to disclose and/or misrepresented the following adverse facts, among others: (1) that LabCorp was currently experiencing a material decline in growth rates for routine/core testing volumes; (2) that LabCorp's marketing and relationship management staff were inadequate and could not effectively compete with local and regional clinical laboratory services; (3) that the service levels, including price, turnaround time and quality of service, of the Company's remote testing facilities including the Company's STAT laboratories and patient care facilities, among others, were inadequate and could not effectively compete with local and regional clinical laboratory services; (4) that the types of clinical laboratory services available through the Company's remote testing facilities were limited and could not effectively compete with local and regional clinical laboratory services; and (5) based on the foregoing, defendants' opinions, projections and forecasts concerning the Company and its operations were lacking in a reasonable basis at all times. Rather than disclose the truth about the Company's weakening condition and jeopardize its ability to complete acquisitions, defendants issued a series of materially false and misleading statements to the market in order to inflate the price of LabCorp common stock and enable the Company to use its stock as currency for a material acquisition. In addition, prior to the disclosure of the facts about the Company, LabCorp insiders sold more than $29 million of their personally held LabCorp common stock to the unsuspecting public. The truth about LabCorp was partially revealed, when on October 3, 2002, defendants announced that LabCorp failed to meet revenue and earnings guidance for the third quarter ended September 30, 2002, as well as the remainder of 2002, due to a revenue shortfall, primarily, in the South and Southeast regions of the U.S. stemming from a material loss of routine/core testing volumes among independent physicians. Subsequently, on October 4, 2002, Mr. MacMahon admitted that defendants were aware that the Company was losing sales to local and regional labs and had attempted, unsuccessfully, to ``remedy the problem'' as early as May 2002. Following these announcements, the price of LabCorp common stock collapsed, losing over 34% of their value in one day of trading to close at $21.68 per share on October 4, 2002, and falling over 58% from the Class Period high of $51.98 per share reached on or about May 10, 2002. For more details, contact Marc A. Topaz or Stuart L. Berman by Phone: (888) 299-7706 (toll free) or (610) 667-7706 or by E- mail: info@sbclasslaw.com PRINTCAFE SOFTWARE: Charles Piven Lodges Securities Suit in PA -------------------------------------------------------------- The Law Offices Of Charles J. Piven, PA initiated a securities class action on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of Printcafe Software, Inc. (NasdaqNM:PCAF) between June 18, 2002 and October 22, 2002, inclusive. The case is pending in the United States District Court for the Western District of Pennsylvania. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Charles J. Piven by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by Phone: 410-986-0036 or by E-mail: hoffman@pivenlaw.com RECOTON CORPORATION: Milberg Weiss Lodges Securities Suit in FL --------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class action on behalf of purchasers of the securities of Recoton Corporation (NasdaqNM:RCOTQ) between November 15, 1999 through August 19, 2002, inclusive who have been damaged thereby. The action is pending in the United States District Court for the Middle District of Florida, Orlando Division, against: (1) Arnold Kezsbom, (2) Robert L. Borchardt, (3) Stuart Mont, and (4) Tracy Clark 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 November 15, 1999 and August 19, 2002, thereby artificially inflating the price of Recoton securities. During the class period, the Company issued statements that failed to disclose the following adverse facts, among others: (i) that a "strategic plan," which was required by its creditors, was not implemented to improve efficiencies, increase future profitability, improve cash flow, and increase return on assets; (ii) that company executives received bonuses prior to meeting corporate financial goals contrary to the Company's statements that Recoton was moving to a more "incentive-based method of compensation;" (iii) that the Company's reported financial results that were in violation of generally accepted accounting principles (GAAP) because of material inventory overstatements, and improper revenue recognition tactics. On August 19, 2002, the Company revealed that it had granted additional price concessions to customers "on products previously purchased." On news of this, shares of Recoton stock fell 15% to close at $1.76 per share, a far cry from the Class Period high of over $20 per share. For more details, contact Steven G. Schulman by Mail: One Pennsylvania Plaza, 49th fl. New York, NY 10119-0165 by Phone: (800) 320-5081 by E-mail: Recotonlcase@milbergNY.com or visit the firm's Website: http://www.milberg.com STOCKWALK INC.: Zimmerman Reed Launches Securities Lawsuit in MN ---------------------------------------------------------------- Zimmerman Reed PLLP initiated a securities class action in the United States District Court for the District of Minnesota on behalf of persons who purchased the common stock of Stockwalk on the open market from May 8, 2001 through September 25, 2001. At the time, the stock was trading on the Nasdaq Exchange under the symbol STOK. It has now been de-listed. The shareholder bringing the lawsuit is a resident of Faribault, Minnesota who purchased Stockwalk securities during the class period on the open market. The complaint alleges that certain former officers of Stockwalk issued materially false statements and omitted material facts concerning Stockwalk's financial condition during the class period. Generally, defendants represented that Stockwalk's internal controls were sufficiently adequate to permit the issuance of a report on the company's financials statements for the period ending March 31, 2001, that the company was not in violation of certain net capital requirements and that the company was not at risk with respect to its stock lending activities. The complaint alleges that purchasers of Stockwalk securities were unaware that a significant activity that the company was engaged in was stock lending. The complaint also asserts that Defendant Ernst & Young lacked independence in conducting its auditing and accounting activities, was negligent in performing its services and should have objected to the issuance in June and July 2001, of its prior, unqualified opinion on the March 31, 2001 financial statements. For more details, contact Robert C. Moilanen or Carolyn G. Anderson by Phone: 800-755-0098 or 612-341-0400 ********* A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the Class Action Reporter. Submissions via e-mail to carconf@beard.com are encouraged. Each Friday's edition of the CAR includes a section featuring news on asbestos-related litigation and profiles of target asbestos defendants that, according to independent researches, collectively face billions of dollars in asbestos-related liabilities. The Asbestos Defendant Profiles is backed by an online database created to respond to custom searches. Go to http://litigationdatasource.com/asbestos_defendant_profiles.html ********* 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 2003. 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. 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