/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/030704.mbx C L A S S A C T I O N R E P O R T E R Friday, July 4, 2003, Vol. 5, No. 131 Headlines AMERICAN PROMOTIONAL: Recalls Fireworks Due to Injury Risk CALPINE: Moves to Transfer, Consolidate Securities Suits in CA CALPINE CORP: CA Suits Allege Breach of Fiduciary Obligations CALPINE CORP: Says Shareholder Derivative Suit Has No Merit CALPINE: Certain Director Defendants Dismissed in Gordon Case CATHOLIC CHURCH: Lawyers Argue Over $26M Settlement Distribution CMS ENERGY: Fighting Consolidated Securities Lawsuit in E.D. MI CONNECTICUT: Children's Advocate Says DCF Violates Court Order DEAN FOODS/HORIZON: Shareholders Sue Over Proposed Acquisition DENVER: Suit Claims Airport Exposed to Mold, Fungi Contamination FRANZUS CO.: Recalls Adapter Plugs for Possible Injury Hazard GSW INDUSTRIES: Recalls Water Heaters for Possible Burn Hazard INTERVOICE: Discovery Stayed Pending Case Dismissal Resolution JAKKS PACIFIC: Recalls "Spit Smatter" Spray Foam for Injury Risk KENTUCKY: Two Building Firms Sue State's Transportation Cabinet MIRANT CORP: Investors Sue Unit Claiming False Bond Registration PACIFIC SMOKING: Recalls Smoked Salmon For Possible Health Risk PERFECT FIT: Recalls Electric Blankets for Possible Burn Injury PREMIER CRUISE: Discloses Proposed Class Action Settlement SLAVERY REPARATIONS: Lawsuits Spur Demand For Congress' Action SMALL SMALL WORLD: Recalls "Egg Dippers" Easter Plush Toys SPRINT: Customer Commences Add-On Fees Lawsuit SUBARU: Recalls Some 2003 Model Year Legacy and Outback Vehicles TOWNE SERVICES: N.D. GA Court Sets Settlement Hearing on July 23 UNITED KINGDOM: Kenyan Women Granted Legal Aid For Rape Case * Beef Recall Highlights Need for E. Coli Treatment Asbestos Alert ASBESTOS ALERT: Northrop Grumman Battles Asbestos-Related Suits ASBESTOS LITIGATION: FMC Corp Faces Asbestos Premises Claims ASBESTOS LITIGATION: Trimas Posts Latest on Asbestos Suits ASBESTOS LITIGATION: Asbestos Miners to Get GBP7.5M ASBESTOS LITIGATION: CSX Pegs Asbestos Liabilities at $17M ASBESTOS ALERT: Widow Sues Silsoe Institute for Husband's Death ASBESTOS LITIGATION: Senate OKs Asbestos Trust Fund Increase ASBESTOS LITIGATION: Worker Dies of Asbestos-Related Disease ASBESTOS LITIGATION: ABB Says Asbestos Cases Pose a Threat New Securities Fraud Cases CORNERSTONE PROPANE: Schatz & Nobel Files Lawsuit in N.D. CA CREE INC: Wechsler Harwood Commences Securities Suit in M.D. NC INTERMUNE: Glancy & Binkow Files Securities Fraud Lawsuit in CA MORGAN STANLEY/UBS: Rabin Murray Commences Lawsuit in S.D. NY SINGING MACHINE: Milberg Weiss Files Securities Fraud Suit in FL ********* AMERICAN PROMOTIONAL: Recalls Fireworks Due to Injury Risk ---------------------------------------------------------- Florence, Ala.-based American Promotional Events Inc., in voluntary cooperation with the U.S. Consumer Product Safety Commission, recalls about 22,700 units of "TNT" Reloadable Tube Fireworks. The firework device has a defective base and can break during launch, if reused. The launching device could then send fireworks in unintended directions, possibly causing injury. There have been two reports of the base of these firework devices breaking. No injuries were reported. The firework device consists of a black base with a multicolored PVC material tube having approximate dimensions of 11 inches high by 1.25 inches in diameter. Each product is sold with six shells with fuses. The product is labeled "Model No. CP983," "Item No 460070," "TNT," and "#1 SELLING BRAND." Manufactured in China, firework display stands and tents and retail operations in those states where the sale of consumer fireworks is legal sold the recalled products from June 2003 through July 2003 for about $35. Consumers are advised to return the entire firework device to the retailer for a refund or contact TNT for further directions. American Promotional Events Inc., (TNT) can be reached at (800) 243-1189 between 8 a.m. and 4:30 p.m. CT Monday through Friday. CALPINE: Moves to Transfer, Consolidate Securities Suits in CA -------------------------------------------------------------- A securities class action, Hawaii Structural Ironworkers Pension Fund v. Calpine, et al., was filed on March 11, 2003, against Calpine, its directors and certain investment banks in the California Superior Court, San Diego County. The Hawaii action is brought on behalf of a purported class of purchasers of the Company's equity securities sold to public investors in its April 2002 equity offering. The Hawaii action alleges that the Registration Statement and Prospectus filed by Calpine which became effective on April 24, 2002, contained false and misleading statements regarding the Company's financial condition in violation of Sections 11, 12 and 15 of the Securities Act of 1933. The Hawaii action relies in part on the Company's restatement of certain past financial results announced on March 3, 2003, to support its allegations. The Hawaii action seeks an unspecified amount of damages, in addition to other forms of relief. The Company considers this lawsuit to be without merit. The Company has removed the Hawaii action to federal court in April 2003 and filed a motion to transfer the case for consolidation with the other securities class action lawsuits in the U.S. District Court Northern District Court of California in May 2003. CALPINE CORP: CA Suits Allege Breach of Fiduciary Obligations ------------------------------------------------------------- On April 17, 2003, a participant in the Calpine Corporation Retirement Savings Plan filed a class action lawsuit captioned Phelps v. Calpine Corporation, et al. The Phelps action is brought on behalf of a purported class of participants in the 401(k) Plan. The Phelps action alleges that various filings and statements made by Calpine during the class period were materially false and misleading, and that the defendants failed to fulfill their fiduciary obligations as fiduciaries of the 401(k) Plan by allowing the 401(k) Plan to invest in Calpine common stock. The Phelps action seeks an unspecified amount of damages, in addition to other forms of Shareholder relief. In May 2003 Lennette Poor-Herena, another participant in the 401(k) Plan, filed a substantially similar class action lawsuit as the Phelps action in the Northern District of California. The Company considers these lawsuits to be without merit. CALPINE CORP: Says Shareholder Derivative Suit Has No Merit ----------------------------------------------------------- On December 17, 2001, a shareholder filed a derivative lawsuit on behalf of the Calpine Corporation against its directors and one if its senior officers. This lawsuit is captioned Johnson v. Cartwright, et al. and is pending in the California Superior Court, Santa Clara County. The Company is a nominal defendant in this lawsuit, which alleges claims relating to purportedly misleading statements about Calpine and stock sales by certain of the director defendants and the officer defendant. In December 2002 the court dismissed the complaint with respect to certain of the director defendants for lack of personal jurisdiction, though the plaintiff may appeal this ruling. In early February 2003 the plaintiff filed an amended complaint. In March 2003 the Company and the individual defendants filed demurrers. The Company considers this lawsuit to be without merit and intends to vigorously defend against it. CALPINE: Certain Director Defendants Dismissed in Gordon Case ------------------------------------------------------------- On August 8, 2002, a shareholder filed a derivative lawsuit in the United States District Court for the Northern District of California on behalf of Calpine against its directors, captioned Gordon v. Cartwright, et al., similar to Johnson v. Cartwright. The Company considers this lawsuit to be without merit. Motions have been filed to dismiss the action against certain of the director defendants on the grounds of lack of personal jurisdiction, as well as to dismiss the complaint in total on other grounds. In February 2003 the plaintiff agreed to stay these proceedings in favor of the consolidated federal securities class action described above and to dismiss without prejudice certain director defendants. CATHOLIC CHURCH: Lawyers Argue Over $26M Settlement Distribution ---------------------------------------------------------------- Discussion is taking place among the lawyers on how to distribute the $25.7 million settlement by the Archdiocese of Louisville among the 243 plaintiffs who accused priests and employees of child sexual abuse, reported Associated Press Newswires. The plaintiffs' lawyers met Monday to share ideas on how the money should be divided and whether their clients should pay fees to the lead attorneys in the class-action lawsuit. William McMurry, who represents most of the plaintiffs and helped mediate the near-record settlement on June 10, has proposed that Cincinnati lawyer Matthew Garretson be appointed to decide how much each plaintiff shall receive, based on a system that would place victims in one of five categories, depending on the severity of abuse. Mr. Garretson would consider other factors as well: age of victims and the frequency of abuse. Michael Slaughter, who represents half a dozen plaintiffs, said some of his clients prefer equal rewards for all, though it might result in lower amounts for them. "Such a distribution is quicker, less complicated," he said. Douglas Morris, a lead attorney in the case, said that it would be around November when the first awards are distributed to plaintiffs under Mr. McMurry's plan. Mr. Morris said suggestions from the other plaintiffs' attorneys would be considered before settling on a distribution plan. Attorneys for some of the plaintiffs criticized the lead attorneys for seeking fees for negotiating the settlement. Andrew White said the lead attorneys earlier indicated they would not seek a fee for serving as class-action counsel. With agreement on distribution still under consideration, Jefferson County Circuit Court Judge James M. Shake set a July 28 hearing to determine the fairness of the settlement, and to consider, as well, the allocation plans and attorneys' fees. As a class action, the settlement must be approved by a judge. CMS ENERGY: Fighting Consolidated Securities Lawsuit in E.D. MI --------------------------------------------------------------- Beginning on May 17, 2002, a number of securities class action complaints have been filed against CMS Energy, Consumers and certain officers and directors of CMS Energy and its affiliates. The complaints have been filed in the United States District Court for the Eastern District of Michigan as purported class actions by individuals who allege that they purchased CMS Energy's securities during a purported class period. At least two of the complaints contain purported class periods beginning on August 3, 2000 and running through May 10, 2002 or May 14, 2002. These complaints generally seek unspecified damages based on allegations that the defendants violated United States securities laws and regulations by making allegedly false and misleading statements about the company's business and financial condition. The cases have been consolidated into a single lawsuit, and an amended and consolidated complaint was filed by May 1, 2003. CMS Energy and Consumers intend to vigorously defend against this action. CMS Energy and Consumers cannot predict the outcome of this litigation. CONNECTICUT: Children's Advocate Says DCF Violates Court Order -------------------------------------------------------------- Martha Stone, lead lawyer for the plaintiffs in a 12-year old class-action lawsuit, says the state's Department of Children and Families (DCF) is violating a federal court order in that nearly half the agency's social workers have caseloads that are too big, reported Associated Press Newswires. The federal court order arises out of a consent decree, in its turn stemming from a 1989 class-action lawsuit filed on behalf of DCF clients, which alleged that the state did not adequately protect children in care. Ms. Stone is executive director for the University of Connecticut Law School Center for Children's Advocacy. Ms. Stone told the Journal Inquirer of Manchester that 454 social workers at the agency have caseloads that exceed the maximum allowed by the court order. Concern about staff levels and maintaining caseloads was "one of the most driving forces behind the consent decree," Ms. Stone said. Ms. Stone added that DCF is violating other federal consent- decree mandates because of the trouble it has had maintaining the proper number of social workers and therefore the proper caseload per social worker. She said the violations arising out of caseloads exceeding the maximum allowed are, for example, improper screening of children to determine appropriate treatment options and the subsequent failure to track treatment progress and completion of treatment. "The main thing we have to focus on is what harm is being done to the children and how lack of the appropriate number of social worker positions affect the delivery of care," said Ms. Stone. Sixty-five, of the 1,019 social worker positions needed by DCF to service the number of children in its care, are currently vacant. In February 2002, U.S. District Judge Alan H. Nevas approved an 18-month exit plan that would bring DCF out from monitoring under the consent decree. The plan lists 22 goals for DCF to meet in order free itself from court oversight. The goals -- which address staffing, funding, caseloads, social worker visits and placement of children -- have minimum and maximum levels that must be reached and maintained for 12 consecutive months before the court considers releasing the agency from its control. The 18-month transition period ends in August; Ms. Stone said the exit plan could collapse if the latest violations have not been addressed at that time. A spokeswoman for Governor John G. Rowland said DCF is important to the governor and that the Office of Policy and Management is meeting with the DCF to discuss the 65 social workers needed to alleviate the caseload violation. DEAN FOODS/HORIZON: Shareholders Sue Over Proposed Acquisition -------------------------------------------------------------- Dean Foods Company (NYSE: DF) and Horizon Organic Holding Corporation (Nasdaq: HCOW) announced that two shareholders have filed two class action complaints in the Chancery Court in the State of Delaware against Dean Foods Company and Horizon Organic Holding Corporation and the individual members of its Board of Directors. The complaints allege, among other things, that the consideration to be paid to shareholders of Horizon Organic in connection with the proposed acquisition by Dean Foods of Horizon Organic is unfair and that the defendants breached their fiduciary duties to the Horizon Organic shareholders. Tom McCloskey, Chairman of the Board of Directors of Horizon Organic, stated, "The proposed acquisition of Horizon Organic by Dean Foods is in the best interests of the Horizon Organic shareholders. We are very pleased with the consideration to be paid and are confident that it represents a full and fair price to Horizon Organic's shareholders." "We believe these lawsuits are without merit, and we intend to vigorously defend them," said Gregg Engles, Chairman and Chief Executive Officer of Dean Foods. "We continue to expect to close this transaction in the fourth quarter." Dean Foods and Horizon Organic announced on Monday the signing of a definitive agreement by which Dean Foods will acquire the 87% equity interest in Horizon Organic it does not currently own for a cash price of $216 million, or $24 per share, and the assumption of approximately $40 million in debt. DENVER: Suit Claims Airport Exposed to Mold, Fungi Contamination ---------------------------------------------------------------- A class action lawsuit has been filed in the Denver District Court claiming that travelers and employees at Denver International Airport have been exposed to extensive mold and fungi contamination that can cause and has caused a variety of recurring respiratory problems, The Denver Post reports. The suit alleges that since 1995, thousands of employees and travelers, especially those using Concourse B, have been exposed to the problems, caused by what the lawsuit describes as "severe environmental conditions" such as recurring raw sewage leaks and emissions of toxic gases. The lawsuit asks for unspecified monetary damages from the city of Denver. Two named plaintiffs are United Airlines employees Terri Crandall and Joann Hubbard. The suit claims that after having spent a considerable time at the airport, they have begun to develop various respiratory difficulties and other ailments that are consistent with toxic exposure. Turner West, DIA's deputy manager of aviation for maintenance and engineering, said Tuesday night the airport is not contaminated with mold and fungi and that repeated testing, by the city of Denver and United, has failed to turn up any mold and fungi contamination, according to the Denver Post. In summary, the suit seeks: 1) an injunction to abate the alleged contamination and to force the airport to "take all precautions necessary to protect the health of the plaintiffs and class members; 2) for the city of Denver to institute safeguards at the airport to find any adverse health effects caused by the allegedly hazardous environment; and 3) to establish a fund to administer a medical surveillance program allowing the plaintiffs to have periodic medical screening for early detection and treatment of health problems. FRANZUS CO.: Recalls Adapter Plugs for Possible Injury Hazard ------------------------------------------------------------- Franzus Company LLC, of Beacon Falls, Conn., in voluntary cooperation with the U.S. Consumer Product Safety Commission, recalls about 29,000 units of International Adapter Plugs. The adapter plug can separate, exposing live electrical conductors, posing an electrocution and shock hazard to consumers. The Franzus Co. has received two reports of the plugs separating. No injuries have been reported. The black or white plastic adapter plugs have names of specific countries or regions where the plugs are intended for use written on the side. The writing includes "NORTHERN EUROPE," "GREAT BRITAIN," "NO. AMERICA," "AUSTRALIA," and "SO. EUROPE." Except for the names of these countries and regions, the recalled plugs have no other writing on them. Plugs with "MADE IN USA" printed between the prongs, or that have a screw between the prongs, are not included in the recall. Manufactured in China, catalog and retail stores nationwide sold the adapter plugs in sets of five from April 2002 through June 2003 for between $10 and $40. As remedy, the company is offering free replacement adapter plugs. For more information, contact Franzus Co. by Phone: (800) 706-7063 between 9 a.m. and 5 p.m. ET Monday through Friday, or by Email: service@franzus.com. GSW INDUSTRIES: Recalls Water Heaters for Possible Burn Hazard -------------------------------------------------------------- GSW Industries Inc., of Fergus, Ontario, Canada and S.I.T. Manufacturing N.A.S.A. de C.V. (distributor), of Mexico, in voluntary cooperation with the U.S. Consumer Product Safety Commission, recall 13,000 units of S.I.T. Gas Temperature Controls on GSW Water Heaters in the USA. The product poses a potential burn hazard from ignition flashback or an increase in tank water temperature. In Canada, where 140,000 units were sold, there were 45 incidents reported, including 15 reports of minor burns. None was reported in the U.S. This recall involves GSW water heaters with S.I.T. model 650 AC4 gas/temperature controls. The temperature control knobs on GSW propane water heaters are red and the control knobs on GSW natural gas water heaters are blue. The controls can be found on GSW Water Heaters with serial numbers ranging from 0202694162 to 0304507825. Regional appliance distributors sold the recalled products from February 2002 through April 2003 for between $150 and $550. The gas temperature controls were manufactured in Mexico. The water heaters were manufactured in Canada. As remedy, the company advises that: when installing a GSW water heater with a SIT AC4 gas control valve in the identified group, or re-lighting the pilot light, the following instructions must be complied with: Make sure that the water heater contains cool water prior to lighting the pilot by opening a hot water faucet near your water heater and allowing the water to run for five minutes. Close the faucet. Turn the gas/temperature control knob clockwise to the maximum (VERY HOT) setting, and then slowly turn the knob back counterclockwise to the PILOT position, indicated by the yellow button. Listen for the main valve to close- this would be a popping or snapping sound. This sound is different from the clicking sound that the knob makes as you turn it. If you hear the popping sound then the valve is working properly. You should then read and follow the "Installation and Operating Instructions". If you do not hear the popping sound then do not attempt to light the pilot and replace the valve. If the unit has been stored or is being installed in a cold environment and the main valve does not close before the knob is turned back to the PILOT position, the gas control valve must be warmed up to a temperature above 32 degrees F or 0 degrees C. Once warmed up, repeat the procedure above. If the gas control valve does not close (popping sound), replace the valve. If the water is too hot or if the temperature and pressure valve opens, turn down the temperature using the temperature control. If the water remains too hot or the temperature and pressure relief valve continues to open, then replace the valve. For more details, call GSW toll-free at (800) 263-3502 between 8 a.m. and 5 p.m. ET Monday through Friday or S.I.T. Controls USA Inc. at (704) 369-2810 between 8 a.m. and 5 p.m. ET Monday through Friday. INTERVOICE: Discovery Stayed Pending Case Dismissal Resolution -------------------------------------------------------------- Several related class action lawsuits were filed in the United States District Court for the Northern District of Texas on behalf of purchasers of common stock of Intervoice Inc. during the period from October 12, 1999 through June 6, 2000. Plaintiffs have filed claims, which were consolidated into one proceeding, under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the Securities and Exchange Commission Rule 10b-5 against the Company as well as certain named current and former officers and directors of the Company on behalf of the alleged class members. In the complaint, Plaintiffs claim that the Company and the named current and former officers and directors issued false and misleading statements during the Class Period concerning the financial condition of the Company, the results of the Company's merger with Brite and the alleged future business projections of the Company. Plaintiffs have asserted that these alleged statements resulted in artificially inflated stock prices. The Company believes that it and its officers complied with their obligations under the securities laws, and intends to defend the lawsuit vigorously. The Company responded to this complaint by filing a motion to dismiss the complaint in the consolidated proceeding. The Company asserted that the complaint lacked the degree of specificity and factual support to meet the pleading standards applicable to federal securities litigation. On this basis, the Company requested that the United States District Court for the Northern District of Texas dismiss the complaint in its entirety. Plaintiffs responded to the Company's request for dismissal. On August 8, 2002, the Court entered an order granting the Company's motion to dismiss the class action lawsuit. In the order dismissing the lawsuit, the Court granted plaintiffs an opportunity to reinstate the lawsuit by filing an amended complaint. Plaintiffs filed an amended complaint on September 23, 2002. The Company has filed a motion to dismiss the amended complaint, and plaintiffs have filed a response in opposition to the Company's motion to dismiss. The Court has ordered the parties to attend a mediation with a neutral third-party mediator during June 2003. All discovery and other proceedings not related to the dismissal have been stayed pending resolution of the Company's request to dismiss the amended complaint. JAKKS PACIFIC: Recalls "Spit Smatter" Spray Foam for Injury Risk ---------------------------------------------------------------- JAKKS Pacific Inc., of Malibu, Calif., in voluntary cooperation with the U.S. Consumer Product Safety Commission, recalls about 1.3 million units of "Spit Smatter" Spray Foam. The aerosol cans can forcefully break apart, posing a risk of serious injury to nearby consumers. The Company has received four reports of the aerosol cans breaking apart, including one incident that resulted in a laceration injury to a consumer and several incidents involving property damage. The "Spit Smatter" spray comes in a pressurized can and emits a colored foam based on one of six brands: "Original Smatter," "Blueberry Smatter," "Banana Cream Smatter," "Lemon Meringue Smatter," and "Fatter Smatter." The brand name is printed on the can and the word "Nickelodeon" is printed on the orange trigger mechanism. Discount department and toy stores nationwide sold the "Spit Smatter" foam cans between February 2002 and June 2003 for about $10. The product is manufactured in China. Consumers should immediately take the aerosol can away from children and contact the company for instructions on disposal and how to receive a full refund. JAKKS Pacific can be reached by Phone: (800) 554-5516 between 8:30 a.m. and 5:30 p.m. PT Monday through Friday, or by E-mail smatterrecall@jakks.net. KENTUCKY: Two Building Firms Sue State's Transportation Cabinet --------------------------------------------------------------- Two construction companies have filed a class action lawsuit against Kentucky's Transportation Cabinet, its director and the state highway engineer, alleging racketeering and civil rights violations, reported Associated Press Newswires. Transportation officials used the state's Disadvantaged Business Enterprise Program "as an enterprise to commit fraud" by awarding contracts to companies "they knew were unqualified to participate in the program," according to the lawsuit filed in Franklin County Circuit Court. This practice deprived legitimate candidates from benefiting from the program, the lawsuit further alleged. Plaintiffs Chaz Concrete Co. of Louisville and Grant Trucking Co. of Jeffersonville, Indiana, claim Transportation Secretary James Codell III and state highway engineer J.M. Yowell manipulated the process to qualify companies they knew were not eligible. The plaintiffs are seeking unspecified monetary damages. The Disadvantaged Business Enterprise Program is aimed at helping socially and economically disadvantaged companies compete for state contracts. Certification in the program helps construction companies owned by minorities and women get work as subcontractors on state road projects and other public construction projects. Governor Paul Patton's former mistress, Tina Conner, has claimed that during their affair the governor helped get ST Construction, a company Ms. Conner owned, certified for the program. But Governor Patton and Secretary Codell have denied any impropriety in the process that led to certification of Ms. Conner's now-defunct company. MIRANT CORP: Investors Sue Unit Claiming False Bond Registration ---------------------------------------------------------------- Mirant Corp. said it received notice of a class-action lawsuit filed June 11 against its unit Mirant Americas Generation LLC, according to a Form 8-K, filed recently with the Securities and Exchange Commission, reported Atlanta Journal-Constitution. The SEC filing did not include the full name of the plaintiff. The lawsuit was filed in Fulton County Superior Court, Georgia. It asks to represent a class of all people who purchased debt securities of Mirant Americas Generation under an offer in May 2002, in which $750 million of bonds registered were exchanged for $750 million of previously issued Mirant Americas Generation's senior notes. The lawsuit alleges that Mirant Americas Generation's recent restatement of financial statements rendered the registration filed for the exchange offer materially false. The plaintiffs demand damages, interest and attorneys' fees. PACIFIC SMOKING: Recalls Smoked Salmon For Possible Health Risk --------------------------------------------------------------- Pacific Smoking Co. of Salem, Oregon, is voluntarily recalling 222.44 pounds of Pacific Seafood Northwest Style Smoked Salmon, because it has the potential to be contaminated with Listeria monocytogenes, an organism which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems. Although healthy individuals may suffer only short-term symptoms such as high fever, severe headache, stiffness, nausea, abdominal pain and diarrhea, Listeria infection can cause miscarriages and stillbirths among pregnant women. Pacific Seafood Northwest Style Smoked Salmon was distributed in Oregon, Washington, Idaho, Montana, and California, through food service and retail outlets. The smoked salmon is vacuumed packaged in approximate one half to one pound packages. On the back of each package there is an orange sticker with the lot numbers 052922, 092903. No illnesses relating to this product have been reported to date. The potential for contamination was noted after routine FDA testing revealed the presence of Listeria monocytogenes in retail packs of smoked salmon. For more details, contact the Company by Phone: 503-905-4446. PERFECT FIT: Recalls Electric Blankets for Possible Burn Injury --------------------------------------------------------------- Perfect Fit Industries, of Charlotte, N.C., in cooperation with the U.S. Consumer Product Safety Commission, is recalling about 18,000 units of SOIREE and Soft n' Warm Electric Blankets. These blankets can overheat, posing a risk of burn injuries to consumers, especially when the blanket is folded or bunched. Perfect Fit is aware of 44 reports of these blankets overheating, resulting in four reports of minor burn injuries. Damage to the blankets and bedding materials also have been reported. The recalled electric blankets are the SOIREE (only those sold at Belk stores) and Soft n' Warm (only sold at K-mart), both of which were sold in king, queen, full and twin sizes. At Belk, the electric blankets were sold only in ivory color and at K- mart they were sold in ivory, light blue and hunter green colors. The model name appears on the packaging, but not on the blanket. Both models have a UL warning label and a permanent label that reads "Perfect Fit" and "Shell Made in China. Wired and Closed in U.S.A." The Soft n' Warm model has a date code ranging from 02228 through 02305 printed on a warning label on the foot of the blanket. K-mart and Belk stores nationwide sold the electric blankets from September 2002 through February 2003 for between $40 (twin size) and $200 (king size). Firm is providing a free replacement blanket and advises that consumers should unplug the recalled units immediately. For more details, contact the Company by Phone: (877) 882-9478 between 9 a.m. and 5 p.m. ET Monday through Friday. PREMIER CRUISE: Discloses Proposed Class Action Settlement ---------------------------------------------------------- Todd Pittenger of the Law Offices of Lowndes, Drosdick, Doster, Kantor & Reed, P.A., counsel for the Defendant Premier Cruise Lines, and Douglas Bowdoin, counsel for the previously certified Plaintiff Class announced a proposed settlement on behalf of persons who purchased tickets for a cruise with Premier Cruise Lines during the period May 1, 1992 to December 31, 1997. Premier's ships, the Oceanic, the Atlantic, and the Majestic, operated under the name The Big Red Boat. The class action alleges that Premier collected "port charges" that exceeded the amount actually paid and seeks a refund of the excess. Premier denies all allegations. The Court has not decided in favor of one side or the other. Instead, the parties have agreed to a settlement. What Can a Class Member Get From The Settlement? Premier is no longer in business. In exchange for records from Premier, Ocean Club Cruise Line, which is not related to Premier, will provide vouchers for $40 or $30 discounts against the best negotiated price for its 2- and 3-night cruises, respectively, out of Port Canaveral, Florida. A class member is entitled to a voucher for every qualifying Premier cruise taken. In exchange for these benefits, you release all claims against Premier, its shareholders, and affiliates relating to port charges. A Class Member can receive the vouchers by contacting Complete Claim Solutions, Inc. (the "Claims Administrator") toll-free at 1-888-527-8816 or at http://www.premiersettlement.com,or by writing to Premier Cruise Port Charge Litigation, c/o Complete Claim Solutions, Inc., P.O. Box 24646, West Palm Beach, FL 33416. Class members should not contact counsel for Premier or the court. SLAVERY REPARATIONS: Lawsuits Spur Demand For Congress' Action -------------------------------------------------------------- Lawsuits against corporations over slavery are energizing the longstanding demand for Congress to act, reported the Charleston Gazette. Some supporters of congressional involvement say they want at least an apology to the nation and the descendants of slaves. Representative John Conyers, D-Mich., for the past dozen years has offered a congressional resolution for a commission to research the reparations issue, but the resolutions have gotten nowhere. Now the reparations drive, as well as the class action lawsuit, are both gaining ground in the country. "Once considered a radical fringe movement, today, the fight for reparations has gained momentum as more prominent African- Americans take up the cause," says the article in Crisis magazine, published by the National Association for the Advancement of Colored People, and authored by Tatsha Robertson, New York Bureau Chief of The Boston Globe. The article also features three living children of former slave Andrew Jackson Hurdle, who died in 1935 at the age of 89. His surviving children are 84, 75, and 71. A group of lawyers are at work on the federal class action against 17 corporations. The group includes Harvard Law Professor Charles Ogletree, and civil rights lawyers Johnnie Cochran and Deadria Farmer-Paellman. Among the corporations are FleetBoston Financial Corp., R.J. Reynolds Tobacco Co., CSX and New York Life Insurance Co., which said its predecessor Nautilus Insurance Co. "wrote policies on the lives of slaves in 1846 and 1847," but ended the practice in 1848. The class action lawsuit accuses the corporations of profiting from the slave system and asserts, therefore, that they are liable for reparations to the descendants of slaves. It is estimated that the U.S. economy reaped benefits up to $40 million in slave labor between 1790 and 1860 -- a sum that translates into $1.4 trillion in the value of today's dollar. The Hurdles say they are not looking for personal payments, but want the corporations to apologize and set up a fund specifically for African-American children and the African- American poor. SMALL SMALL WORLD: Recalls "Egg Dippers" Easter Plush Toys ---------------------------------------------------------- Small Small World, of Englewood, N.J., in voluntary cooperation with the U.S. Consumer Product Safety Commission, recalls about 75,000 units of "Egg Dippers" Easter Plush Toys. The toys' seams can separate and allow small beads to be released, presenting an aspiration hazard to young children. There have been two reports of children ingesting beads coming out of these plush toys. No injuries have been reported. The recall includes four animal plush toys. The white rabbit has a purple egg which reads "Happy Easter," the green rabbit has a yellow egg which reads "Happy Easter," the purple bear has a purple egg which reads "Happy Easter," and the yellow duck carries a green egg which reads "You're Egg-stra Special." Each toy has a permanent label affixed which reads "The Boyd's Collection, Ltd." Manufactured in China, department and specialty stores nationwide sold these toys from February 2003 through April 2003 for about $8. Consumers should call the firm on information on getting a free replacement toy. For more information, call The Boyds Collection at (800) 377-3050 between 9 a.m. and 5 p.m. ET Monday through Friday. SPRINT: Customer Commences Add-On Fees Lawsuit ---------------------------------------------- A Sprint cellular phone customer has commenced a class action in the Circuit Court of Palm Beach County arising out of Sprint's practice of adding to customer bills "USA Regulatory Obligations & Fees," including an unjustified fee related to the 911 emergency number. The Class of Sprint customers includes "all persons . . . who were charged by Sprint and paid a Federal E 911 or ``USA Regulatory' fee or similar unilaterally-imposed illegal assessment." The Sprint customer, Kathy Flaherty, a Florida resident, claims that these charges "were not referred to by Sprint at the time of purchase of [Sprint] Service Plans and are imposed unilaterally by Sprint at its discretion." The Complaint goes on to claim that these charges "breach the terms of the service agreements" and the advertised prices for Sprint Service Plans. Richard D. Greenfield, a Royal Oak, Maryland lawyer specializing in the litigation of consumer class actions, stated that: "Sprint's practices are part of a new trend in the wireless telecommunications industry and has used these 911 emergency numbers as a pretext for adding improper and excessive charges. Cellular service providers are adding these surprise "jack-in- the-box" charges to customer bills, which add substantial amounts over the life of the contracts." Anthony J. Bolognese, Co-Counsel for the plaintiff, said, "This is an outrage. These companies advertise fixed prices for bundles of minutes then add charges that appear to be justified to unsuspecting customers." Copies of the Complaint, which requests repayment of the wrongfully charged amounts and other relief, can be obtained by email request at whitehatrdg@earthlink.net. For more information contact Richard D. Greenfield at (410) 745-4149 or Anthony J. Bolognese at (215) 814-6750 or Paul J. Geller at (561) 750-3000 SUBARU: Recalls Some 2003 Model Year Legacy and Outback Vehicles ---------------------------------------------------------------- Subaru of America, Inc., the only car company that offers symmetrical all-wheel drive as standard equipment on every vehicle in its product line, announced a voluntary recall of certain 2003 Subaru Legacy and Outback models in "salt-belt" states to address a possible front suspension corrosion problem. This recall involves some 2003 model year Subaru Legacy sedan and Outback vehicles. The vehicles were produced between April 3, 2003 and April 14, 2003. Approximately 350 vehicles are potentially affected in the "salt belt" region. This recall will include vehicles originally sold and/or currently registered in the states of CT, DE, DC, IA, IL, IN, KY, ME, MA, MD, MI, MN, MO, NH, NJ, NY, OH, PA, RI, VT, VA, WV, and WI. Certain front left-hand side transverse link suspension components were produced by a supplier with poor paint quality which, after continued exposure to corrosive road salts for a period of several years, may result in rusting of the component and eventual breakage of the transverse link. If such breakage would occur while the vehicle is being operated, control of the vehicle could be affected. The campaign was launched as a result of Subaru field inspections and quality assurance testing. There have been no accidents or injuries attributed to this problem. The front suspension transverse link of vehicles operated in the "salt-belt" states will be rust-proofed with anti-rust wax at no cost to the owner. Subaru will provide a campaign bulletin to dealers, and during the month of July a recall notice will be sent to owners who have already purchased one of the affected vehicles, advising them of the potential defect. For more information, contact Lisa Fleming or Mike Whelan by Phone: (856) 488-5093 or by E-mail: lfleming@subaru.com or mwhelan@subaru.com or visit the company's media web site: http://www.media.subaru.com. TOWNE SERVICES: N.D. GA Court Sets Settlement Hearing on July 23 ---------------------------------------------------------------- Pursuant to an Order of the United States District Court for the Northern District of Georgia, Atlanta Division, a hearing will be held on July 23, 2003 at 9:30 A.M. before the Honorable Beverly B. Martin, at the United States District Court, 75 Spring Street, S.W., Atlanta Georgia 30303 for the purpose of determining: 1) whether the proposed settlement of the claims in the securities class action against Towne Services, Inc. for the sum of $2 million in cash, and accrued interest thereon, should be approved by the Court as fair, reasonable, and adequate; 2) whether, thereafter, this action should be dismissed with prejudice as set forth in the Stipulation and Agreement of Settlement dated a of April 30, 2003; 3) whether the proposed Plan of Allocation is fair, reasonable, and adequate and therefore should be approved; and 4) whether the application of plaintiffs' counsel for the payment of attorneys' fees and reimbursement of costs and expenses incurred should be approved. Class members affected by this settlement action include all persons and entities who purchased or otherwise acquired the common stock of Towne Services Inc. between June 23, 1999 and October 13,1999, including those who acquired the company's common stock pursuant to a prospectus filed with the SEC in connection with the company's secondary public offering declared effective on June 23, 1999. In order to share in the distribution of the Net Settlement Fund, one must submit a Proof of Claim and Release no later than September 15, 2003, establishing entitlement to recovery. Any objection to the proposed settlement, plan of allocation or fee application must be filed with the Court no later than July 14, 2003. Steven B. Singer, Esq. of Berstein, Litowitz, Berger & Grossmann LLP and Maya Saxena, Esq. of Milberg, Weiss, Bershad, Hynes & Lerach LLP serve as Plaintiffs' Lead Counsel. Sylvia King Kochler, Esq. of Hunton & Williams LLP serves as Defendants' Counsel. UNITED KINGDOM: Kenyan Women Granted Legal Aid For Rape Case ------------------------------------------------------------ About 650 Kenyan women received legal aid from Britain to sue the Ministry of Defense over their claims they were victims of routine attacks, including gang rapes, by British troops stationed in Kenya over a period of 30 years from 1972, the Associated Press reports. The women's British Counsel, Martyn Day, says he holds documentary evidence that British commanding officers in Kenya failed to investigate reports of several of the rapes and that the women intend to sue the ministry for negligence. Most women who've come to join the proposed class action suit for compensation are from the Masai tribe. Mr. Day expects the number to rise to more than 1,000 as his team continues to interview victims and seek records. Most of the rapes are said to have taken place near the villages of Dol Dol, Archers Post and Wamba. The British army reportedly has a training base near Mount Kenya where its soldiers carry out weaponry practice. According to AP, the Department for Constitutional Affairs, which determines the distribution of legal aid in Britain, said Wednesday it had granted limited funds for further investigation of the alleged rapes. Mr. Day said he was going back to Kenya for further investigation before beginning legal action against the Ministry of Defense alleging that the British army systematically failed to exercise its duty of care to the local community. ``Once we are satisfied that the group is right, we will then be looking to commence legal proceedings here in the High Court in London and pursuing this case through the courts to trial,' he said. Day said he would seek compensation of between 20,000 and 30,000 pounds (US$33,200 to US$49,800) for each alleged victim, reports AP. * Beef Recall Highlights Need for E. Coli Treatment --------------------------------------------------- The recent recall of approximately 739,000 pounds of frozen beef, mostly vacuum packaged steaks, dramatically demonstrates the need for an effective treatment of contamination of food and drink products by potentially deadly E. coli O157:H7 bacteria according to Dr. Michael Munzar, Medical Director of Nymox Pharmaceutical Corporation (NASDAQ: NYMX). The recall by the U.S. Department of Agriculture's Food Safety and Inspection Service was unusual because it involved steaks and not ground beef. The contamination was believed to originate from injecting tenderizers and flavor-enhancers. Nymox has under development NXC-4720, a novel antibacterial product for E. coli O157:H7 meat contamination. The Company recently announced that its NXC-4720 product has continued to make its milestones in product development. Recent studies have shown that treatment with NXC-4720 cleared infected beef of E. coli O157 contamination and helped prevent further E. coli contamination. The Company will be extending its field trials. Food safety is a priority item for the Bush administration and the U.S. Department of Agriculture. The USDA has recently announced a number of initiatives directed at the problem of E. coli O157 contamination of meat in particular. In 2002 alone, over 23 million pounds of meat was recalled in the U.S. because of possible E. coli contamination, affecting all sectors of the meat industry from large meat processors to local supermarkets and many consumers. On average, Americans consume over 65 pounds of beef per person per year. "The problems posed by E. coli O157 contamination of our food and water supplies has long been recognized by public health officials and the food industry. What is missing are practical effective solutions," said Dr. Munzar. "Nymox's NXC-4720 has great potential as a viable commercial solution." E. coli O157 bacterial contamination is a major public health problem throughout the world. The Centers for Disease Control and Prevention estimates that in the United States alone, 73,000 human cases occur every year as a result of E. coli O157 contamination of food and drink products and of water supplies. This type of E. coli infection can cause severe bloody diarrhea and abdominal cramps and can lead to kidney failure, particularly in young children and in the elderly, with often serious long term and sometimes fatal results. One USDA study estimated the direct and indirect costs of foodborne E. coli O157 infections at over $650 million per year. Asbestos Alert ASBESTOS ALERT: Northrop Grumman Battles Asbestos-Related Suits --------------------------------------------------------------- Northrop Grumman Corporation reports that it faces numerous asbestos-related lawsuits. Like many other industrial companies in recent years, and as a result of acquisition activities, the company is a defendant in lawsuits alleging personal injury as a result of exposure to asbestos integrated into its premises and certain historical products. The company no longer incorporates asbestos in any currently manufactured products. Many of these claims have been dismissed with no payment and the remaining resolved claims have involved amounts that were not material either singly or in the aggregate. Based on the information available to the company as of the date of filing of this report, the company does not believe that disposition of any or all of these matters would have a material adverse effect upon it. COMPANY PROFILE Northrop Grumman Corporation (NYSE: NOC) 1840 Century Park East Los Angeles, CA 90067-2199 Phone: 310-553-6262 Fax: 310-553-2076 http://www.northgrum.com Employees : 117,300 Revenue : $17,206,000,000 Net Income : $64,000,000 Assets : $42,266,000,000 Liabilities : $27,944,000,000 (As of Dec. 31, 2002) Description: The acquisitions of Litton Industries, Newport News, and TRW have made Northrop Grumman the world's #1 ship builder and the #2 US defense contractor (behind Lockheed Martin). It operates in six sectors: Electronic Systems (military, commercial, and space); Information Technology (computer systems); Integrated Systems (aircraft); Ship Systems (Avondale and Ingalls; military and commercial ships); Newport News (nuclear-powered submarines and aircraft carriers); and Component Technologies (electronic and optical components). High profile products include the B-2 stealth bomber, amphibious assault ships, and oil tankers. Late in 2002 Northrop acquired TRW in a $7,800,000,000 stock deal. ASBESTOS LITIGATION: FMC Corp Faces Asbestos Premises Claims ------------------------------------------------------------ FMC Corp. is involved in multiple party asbestos-related litigations, which allege personal injury due to asbestos exposure. Like hundreds of other industrial companies, FMC has been named as one of many defendants in asbestos-related personal injury litigation. These cases (most cases involve between 50 and 350 defendants) allege personal injury or death resulting from exposure to asbestos in premises of FMC or to asbestos- containing components installed in machinery or equipment manufactured or sold by discontinued operations. The machinery and equipment businesses owned or operated by the company did not fabricate the asbestos-containing component parts at issue in the litigation, and to this day, neither the U.S.'s Occupational Safety and Health Administration nor the EPA has banned the use of these components. Further, the asbestos- containing materials were housed inside of machinery and equipment and accessible only at the time of infrequent repair and maintenance. Therefore, FMC believes that, overall, the claims against FMC are without merit and considers itself to be a peripheral defendant in these matters. Indeed, the bulk of the claims against it to date have been dismissed without payment. As of December 31, 2002, there were approximately 26,000 premises and product claims pending against FMC in several jurisdictions. To date, the company has manages to discharge, all before trial, approximately 51,000 claims against FMC, the overwhelming majority of which have been dismissed without any payment to the plaintiff. The costs of all settlements to date have totaled approximately $3 million. FMC intends to continue managing these cases in accordance with its historical experience. It has established a reserve for this litigation and believes that the outcome of these cases will not have a material adverse effect on its consolidated results of operations, cash flows or financial condition. ASBESTOS LITIGATION: Trimas Posts Latest on Asbestos Suits ---------------------------------------------------------- Trimas reports the status of its asbestos-related cases in its latest report filed with the Securities and Exchange Commission. According to the filing, as of May 12, Trimas has around 581 pending cases involving an aggregate of roughly 25,352 claimants alleging personal injury from exposure to asbestos containing materials formerly used in gaskets (both encapsulated and otherwise) manufactured or distributed by certain of its subsidiaries for use in the petrochemical refining and exploration industries. Trimas acquired various companies to distribute its products that had distributed gaskets of other manufacturers prior to acquisition. The company believes that many of its pending cases relate to locations at which none of its gaskets were distributed or used. Total settlement costs (exclusive of defense costs) for all such cases, some of which were filed over 12 years ago, have been about $2,300,000. Trimas does not have significant primary insurance to cover its settlement and defense costs. The company believes that there may be excess insurance policies of former owners available to it. The company is in the process of reconstructing, but funds may not be available. Based upon its experience to date and other available information, Trimas does not believe that these cases will have a material adverse effect on its financial condition or future results of operations. However, it may be subjected to significant additional claims in the future, the cost of settling cases in which product identification can be made may increase, and it may be subjected to further claims in respect of the former activities of its acquired gasket distributors. ASBESTOS LITIGATION: Asbestos Miners to Get GBP7.5M ----------------------------------------------------- A settlement worth GBP7,500,000 caps the long-running battle for compensation against Cape plc brought by thousands of South African miners with asbestos-related disease. The package also included provision for a further GBP3,100,000 by South African company Gencor Ltd, making a total payout to the workers of �10.6m. Sir Michael Wright formally approved the deal at a hearing at the Royal Courts of Justice. Attorneys for Cape said, "Cape has actively promoted and pursued this settlement, although it does not make any admission of liability. The Cape board is pleased that it comes to a close and that Cape can now move on." During the hearing, a banker's draft was handed on behalf of Cape to Lord Brennan QC, representing more than 7,000 claimants, for more than GBP7,000,000. After hearing from Lord Brennan on behalf of the 7,500 claimants and Charles Gibson QC, for Cape, Sir Michael said he was more than happy to approve the settlement sum. He paid tribute to all parties "for the common sense of the negotiations that have gone on". The settlement will cover only claimants registered in the UK legal action and not future ones. Solicitors for the claimants, Leigh, Day and Co, said: "The amount of the settlement is insufficient to enable funds to be distributed among further claimants." But they said the number of excluded claimants "should be small". The solicitors said the settlement reached in March came after "investigations revealed Cape was in serious financial difficulty and experts advised there was a real threat of insolvency. Had that happened, it is doubtful whether the victims would have received a cent". Cape plc, which sold its asbestos mines in 1979 and now works in asbestos removal, no longer has any interests in South Africa. At a previous hearing, Lord Brennan said it was the largest group action in Britain and the largest transnational claim of its kind. ASBESTOS LITIGATION: CSX Pegs Asbestos Liabilities at $17M ---------------------------------------------------------- CSX Corporation (NYSE: CSX) in a press release, announced on June 26 that it will record additional expenses during the second quarter of 2003 as a result of lawsuits recently filed in West Virginia state courts. According to the report, accounting rules require the company to record an estimate of these expenses. Approximately $17,000,000 will be recorded to account for the newly filed asbestos-related claims in West Virginia. This amount is consistent with previous experience in similar claims, however, the legitimacy of each claim must still be thoroughly reviewed and litigated. Just days before a new venue law took effect in West Virginia approximately 1,500 cases were filed against CSX Transportation (CSXT), CSX Corporation's rail operating unit. The vast majority of the claims involve people who never lived or worked in West Virginia and could have been dismissed and required to have been heard in states that have some relationship to the claim, if they had been filed after June 4, the effective date of the new law. "The rush to beat the effective date shows why the leaders of West Virginia made such a responsible decision earlier this year to reform the state's venue statute. With these latest filings, hundreds of cases have entered West Virginia's resource- constrained court system that has no connection with the state. Responsible citizens and the shareholders and employees of CSX want us to fight for judicial fairness and against every illegitimate claim, and we will," said CSX Senior Vice President of Law and General Counsel, Ellen Fitzsimmons. COMPANY PROFILE CSX Corporation (NYSE: CSX) 500 Water St. Jacksonville, FL 32202 Phone: 904-366-3100 Fax: 904-359-1859 http://www.csx.com Employees : 39,928 Revenue : $8,152,000,000 Net Income : $424,000,000 Assets :$20,951,000,000 Liabilities :$14,710,000,000 (As of December 31, 2002) Description: CSX is in transportation business. Its main subsidiary, CSX Transportation (CSXT), operates the largest rail system (23,000 route miles) in the eastern US. The freight carrier links 23 states, the District of Columbia, and two Canadian provinces. Subsidiary CSX Intermodal arranges the transportation of freight by combinations of road, rail, and ocean carriers. CSX also operates freight terminal company CSX World Terminals, and it owns a minority stake in ocean container shipping company Horizon Lines (formerly CSX Lines). Besides its transportation assets, CSX owns The Greenbrier, a resort in West Virginia. ASBESTOS ALERT: Widow Sues Silsoe Institute for Husband's Death --------------------------------------------------------------- Elaine Stamp is suing Silsoe Institute for roughly GBP130,000 for the death of her husband. The widow claims that her late husband Robert, who died in 2001 at 56 of mesothelioma, was exposed to the asbestos while working for Silsoe Research Institute. Stamp was only 15 years old when he was employed as an apprentice carpenter at the institute. According to the writ, he was required as part of his work to remove and replace the cladding from sheds in the premises of the institute. It claims that the cladding material was made of corrugated asbestos sheets and Mr. Stamp inhaled the dust and fiber containing asbestos while cutting the material using hacksaws and drills. Mrs. Stamp is claiming a total of GBP127,236 damages from Silsoe Research Institute. The institute allegedly exposed her husband to a major risk of fatal injury through asbestos dust and fiber inhalation without giving him adequate protection or warning him about the risks. She also said her husband should have been provided with breathing apparatus and that the institute should have taken measures to reduce the dust generated, such as ensuring the cladding was damped down before cutting. A link between asbestos and lung disease was known from the beginning of the 18th century but the connection with mesothelioma wasn't established until the 1960s. Elaine Stamp is claiming damages for pain and suffering and financial loss to her late husband's estate. Hugh Edmondson, finance director at Silsoe Research Institute said, "Robert Stamp worked at the institute in the early 1960s. He left in 1966 and never returned to the institute. He then went on to work for a number of other companies." The Company only became aware of the case when it received the writ. "The case is very tragic but we have passed this into the hands of our solicitors. This was a very long time ago and we are trying to understand the basics of the case." COMPANY PROFILE Silsoe Research Institute Wrest Park Silsoe Bedford MK45 4HS UK Phone +44 (0)1525 860000 Fax +44 (0)1525 860156 http://www.sri.bbsrc.ac.uk Description: Silsoe Research Institute is one of eight institutes receiving a grant for basic and strategic research from the Biotechnology and Biological Sciences Research Council (BBSRC). It is the only research center in the UK dedicated to the application of engineering and physical sciences to a wide range of biological systems and processes, including applications in the agricultural, environmental, horticultural, food and healthcare industries. It is also a member of the Bioscience Network and is currently working in collaboration with many major research organizations and universities around the world. ASBESTOS LITIGATION: Senate OKs Asbestos Trust Fund Increase ------------------------------------------------------------ Legislators agreed to create a trust fund worth $153,000,000,000 that would end all asbestos lawsuits and instead pay asbestos victims from a set schedule based on their diseases. The agreement, for an additional $45,000,000,000 in funding, could help win support from Democratic lawmakers, increasing the likelihood that the trust will become law. The federal government would administer the trust. A flood of asbestos lawsuits has strained the court system and bankrupted more than 60 companies. ASBESTOS LITIGATION: Worker Dies of Asbestos-Related Disease ------------------------------------------------------------ Keith Woodiwiss, 67, died of asbestosis, caused by his years working on building sites. Woodiwiss worked for various building companies before starting his own business knocking down buildings and renovating. His first job as a builder was in 1956, when he worked for the father of his wife Marina, 67, for nearly four years. But it was later in his career that Woodiwiss became exposed to asbestos, which was used as a roof insulator. Cheshire coroner Nicholas Rheinberg said asbestos was "such a common product, it had been used in items such as ironing boards. That is not the dangerous time," he said. "It's when you are laying asbestos or disturbing asbestos and you get all these fibers released into the atmosphere." It was also mentioned that Woodiwiss had also smoked 10 cigarettes a day. Rheinberg said, 'It is unfortunately an awful combination - asbestos and cigarette smoking.' The coroner recorded "industrial disease" as the cause of death. ASBESTOS LITIGATION: ABB Says Asbestos Cases Pose a Threat ---------------------------------------------------------- In a recent filing with the Securities & Exchange Commission, the Swiss engineering group warns that a drawn-out appeals process against its $1,300,000,000 asbestos compensation package could make it impossible to obtain fresh capital. Absence of which would make it impossible to cut its debt. ABB Ltd admits that the US asbestos cases are indeed a big blow. It says that if it cannot cut its debt, it might be unable to meet its obligations in time and consequently be unable to survive, according to the filing. ABB's proposed asbestos compensation package is currently awaiting verdict in the bankruptcy court in Delaware. A federal court, whose ruling in turn can be appealed, must then approve the package. New Securities Fraud Cases CORNERSTONE PROPANE: Schatz & Nobel Files Lawsuit in N.D. CA ------------------------------------------------------------ Schatz & Nobel, P.C. initiated a securities class action in the United States District Court for the Northern District of California on behalf of all persons who purchased the common units of CornerStone Propane Partners LP (Other OTC: CNPP.PK; formerly NYSE: CNO) between November 2, 1999 and February 11, 2003, inclusive. On February 11, 2003, CornerStone filed a Form 8-K with the SEC stating that it had to restate its financial results for fiscal years 2000 and 2001 due to known errors in previously reported results. The Complaint alleges that CornerStone, certain officers, and its general managing partner 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 2, 1999, and February 11, 2003. The Complaint alleges that the defendants made those misrepresentations in order to renegotiate CornerStone's expiring credit lending agreements, which caused the market price of CornerStone common units to be artificially inflated. For more information, contact Andrew M. Schatz or Wayne Boulton by Phone: (800) 797-5499, or by E-mail: sn06106@aol.com, or visit the firm's Web site: http://www.snlaw.net. CREE INC: Wechsler Harwood Commences Securities Suit in M.D. NC --------------------------------------------------------------- The law firm of Wechsler Harwood 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 publicly traded securities of Cree, Inc. (Nasdaq:CREE) during the period between August 19, 1998 and June 13, 2003, inclusive. During the Class Period, the Company issued statements that failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company had materially overstated its net income and earnings per share; (2) that the defendants artificially boosted Cree's operating income through an undisclosed agreement with defendant Neal Hunter's brother, Jeff Hunter, the then chairman of C3, that required C3 to accept shipments of silicon carbide ("SiC") crystals for the manufacture of Moissanite gemstones far in excess of market demand; (3) that the defendants failed to properly disclose how officers and director's compensation was determined; (4) that the defendants failed to disclose in its registration statements and its prospectuses the proper use of the proceeds from those offerings. For example, in its January 14, 2000 prospectus, Cree failed to disclose that it would invest $5 million of the offering proceeds in World Theatre, Inc.; (5) that the defendants were actively concealing these facts in order to manipulate the Company's earnings outlooks in order to maintain its favorable stock prices; (6) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (7) that the Company's earnings projections were lacking in any reasonable basis when made. On June 13, 2003, Eric Hunter, the former chief executive of Cree filed a $3 billion lawsuit against Cree and defendant Neal Hunter, his brother. Among the allegations contained in the lawsuit, Eric Hunter alleged that since as early as August 1995 and continuing until at least May 2003, Cree and the Individual Defendants engaged in a series of undisclosed corporate activities, which included, among other things, the filing of false and misleading statements to the public and the SEC with respect to the Company's secondary stock offerings, anticipated earnings and revenue, reported income and operating income. Market reaction to the news was swift. Shares of Cree fell 18.5% or $4.11 per share to close at $18.10 per share on heavy trading volume on June 13, 2003. For more information, contact Ramon Pinon, Wechsler Harwood Shareholder Relations Department by Mail: 488 Madison Avenue, 8th Floor, New York, New York 10022 or by Phone: (Toll Free) (877) 935-7400 or by E-mail: rpinon@whesq.com or visit the firm's Web site: http://www.whesq.com INTERMUNE: Glancy & Binkow Files Securities Fraud Lawsuit in CA --------------------------------------------------------------- Glancy & Binkow LLP initiated a securities class action in the United States District Court for the Northern District of California on behalf of all persons who purchased securities of InterMune, Inc. (Nasdaq:ITMN) between January 6, 2003 and June 11, 2003, inclusive. The Complaint charges InterMune and the Company's CEO, W. Scott Harkonen, with violations of federal securities laws. Among other things, plaintiff claims that defendants' dissemination of materially false and misleading statements concerning one of the Company's leading products, Actimmune, caused the Company's stock price to become artificially inflated, inflicting damages on investors. InterMune is a biopharmaceutical company focused on developing and commercializing products for the treatment of serious pulmonary, infectious and hepatic diseases. The complaint alleges that during the Class Period, defendants were aware that demand for Actimmune was declining because: (1) the most recent clinical study showed that Actimmune was not effective in the treatment of certain pulmonary diseases, (2) Actimmune inventory levels were increasing, and (3) doctor demand was falling due, in part, to the Company's decision to curtail physician education, the lifeblood of InterMune's off-label sales of Actimmune. However, despite this knowledge, the Company falsely stated that it was on course to meet projected revenue figures, which had not been previously reduced to reflect lowered demand for the drug. On June 11, 2003, the Company announced that it was cutting its 2003 revenue guidance figures and slashing projected earnings from Actimmune. The Company also announced it had overstated the number of patients using Actimmune and that, contrary to its earlier representations, demand for Actimmune from physicians was flat. These disclosures sent InterMune's stock price plummeting to $16.74, a 33% one-day fall. For more details contact Peter A. Binkow, Esquire by Mail: 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, or by Phone: (310) 201-9161 or Toll Free at (888) 773-9224, or by E-mail: to info@glancylaw.com, or visit the firm's Web site: http://www.glancylaw.com MORGAN STANLEY/UBS: Rabin Murray Commences Lawsuit 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 Atmel Corporation securities (Nasdaq:ATML) between February 4, 2000 through July 11, 2001, inclusive. Morgan Stanley & Co., Inc. and UBS Warburg LLC ("UBS") are 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 issued and maintained favorable ratings and recommendations on Atmel securities without any rational economic basis; failed to disclose that they were issuing and maintaining these recommendations to obtain investment banking business; and concealed significant, material conflicts of interest that prevented them from providing independent and objective analysis. The Complaint alleges that defendant Morgan Stanley, lead underwriter of Atmel's public offering, failed to disclose in the offering documents or elsewhere that Atmel had directed Morgan Stanley to pay portions of the underwriting fees to broker dealers, including defendant UBS, to issue favorable research reports on Atmel. Further, the Complaint alleges that Morgan Stanley failed to ensure that the broker dealers disclosed such payments in their research reports. As a result of these false and misleading statements and omissions of material fact, the Complaint alleges that the price of Atmel 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 complaints against Morgan Stanley and UBS for violating the Exchange Act, and several NASD and NYSE rules by issuing false and misleading analyst reports on companies. Morgan Stanley and UBS each settled these charges for payments of $125 million and $80 million, respectively. For more details, contact Eric J. Belfi or Sharon Lee by Mail: 275 Madison Avenue, New York, NY 10016, 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 Web site: http://www.rabinlaw.com SINGING MACHINE: Milberg Weiss Files Securities Fraud Suit in FL ---------------------------------------------------------------- The law firm of Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class action in the United States District Court for the Southern District of Florida, West Palm Beach Division, numbered 03-80596-CIV-ZLOCH, on behalf of purchasers of the securities of The Singing Machine, Inc. (AMEX:SMD) between August 9, 2001 and June 27, 2003, inclusive. Aside from the company, named defendants are: 1) Salberg & Company, P.A (the Company's auditors), 2) Edward Steele, 3) John F. Klecha, and 4) April Green The Honorable William J. Zloch is the Judge presiding over the action. 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 August 9, 2001 and June 27, 2003. The Complaint alleges that Singing Machine emerged from bankruptcy in 1998, and issued a series of press releases emphasizing "record" net income to foster the impression that the Company had profitably emerged from bankruptcy and had successfully completed its corporate turnaround. In response to the Company's barrage of press release and public filings reporting strong financial results, Singing Machine's stock price soared to over $26 per share in March 2002. On June 27, 2003, Singing Machine shocked the market by announcing it would restate 2002 and possibly 2001 financial results, and would not be able to timely file its Annual Report on Form 10-K for the fiscal year ended March 31, 2003 in order to properly account for income tax provisions for fiscal 2003, and to report an inventory reserve for fiscal 2003. As a result, defendants revealed that net income for fiscal 2003 will be significantly below prior expectations. Singing Machine announced that the restatement will have the effect of reducing net income for fiscal 2002 and possibly fiscal 2001. On June 27, 2003, in late afternoon trading alone Singing Machine stock lost over 30% of its value on enormous trading volumes of over 460,000 shares traded -- in contrast to average trading volumes of around 50,000 shares. The Company alleges that the financial statements issued by the Company made during the class Period, all of which implicitly and/or expressly were prepared in conformity with generally accepted accounting principles (GAAP), were materially false and misleading because the Company materially overstated its net income in its publicly issued financial statements. As a result of the Company's misrepresentations, Singing Machine investors have sustained tremendous losses, and stand to lose much more as the full extent and magnitude of the restatement is disclosed. For queries contact Steven G. Schulman by Mail: One Pennsylvania Plaza, 49th fl., New York, NY 10119-0165, by Phone: 800/320- 5081, by E-mail: singingmachinecase@milbergNY.com or visit the firm's Web site: http://www.milberg.com. ********* 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. 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