/raid1/www/Hosts/bankrupt/CAR_Public/030709.mbx
C L A S S A C T I O N R E P O R T E R
Wednesday, July 9, 2003, Vol. 5, No. 134
Headlines
AVJET CORPORATION: Settles Wrongful Death Lawsuits for $11.7MM
CALICO COMMERCE: Plan Provides for Resolution of Class Claim
COSTA RICA: Lawsuits V. Dundee Ranch Academy Under Consideration
DUKE ENERGY: NC Lawsuits Charge ERISA Violation, Insider Trading
IMCLONE SYSTEMS: Court Dismisses Certain Directors From NY Suit
IMCLONE: Shareholders File Consolidated Amended Complaint in NY
INDIAN FUND: Congress Drafts Bill To Resolve Class Action Suit
MED-PRO: Health Canada Advises of Counterfeit Lipitor in U.S.
MATAV-CABLE: Israeli Residents File Suit Over Subscription Fees
MEDIA ARTS: Dealers Ask TX Court to Certify Class Action Lawsuit
MEDTEL: Court Dismisses Appeal Over Pacemaker Decision
NIGERIA FOOTBALL: May Face Lawsuit Over Game Fiasco
PIONEER ELECTRONICS: Recalls Car Amplifiers Due to Safety Hazard
RITE AID CORP: Settles PA Lawsuit Over Employee Benefits Plans
TAIWAN: Consumer Foundation Seeks Compensation For SARS Victims
TOSHIBA AMERICA: Recalls 3,400 Units of Rear Projection TVs
UNITED STATES: Women at U.S. Mint In Denver Allege Sex Bias
WYOMING: Judge Sets July 11 Deadline for Inmates Protection Plan
* NFPA Urges FDA to Form Effective Bioterrorism Act Regulations
*Lawyers Plan New Strategies To Fight Obesity
Meetings, Conferences & Seminars
* Scheduled Events for Class Action Professionals
* Online Teleconferences
New Securities Fraud Cases
CRYO-CELL: Wolf Haldenstein Commences Securities Lawsuit in FL
GUIDANT CORPORATION: Stull, Stull & Brody Files Suit in S.D. IN
LEHMAN BROTHERS: Kaplan Fox Files Securities Fraud Suit in NY
LEHMAN BROTHERS: Kaplan Fox Files Another Lawsuit in S.D. NY
PEDIATRIX MEDICAL: Milberg Weiss Launches Lawsuit in S.D. FL
POLYMEDICA CORPORATION: Bernard M. Gross Launches Lawsuit in MA
POLYMEDICA CORPORATION: Marc S. Henzel Files Lawsuit in MA
READ-RITE CORP: Milberg Weiss Commences Fraud Suit in N.D. CA
SINGING MACHINE: Charles Piven Files Securities Suit in S.D. FL
SINGING MACHINE: Alfred Yates Lodges Securities Suit in S.D. FL
*********
AVJET CORPORATION: Settles Wrongful Death Lawsuits for $11.7MM
--------------------------------------------------------------
The Witham and Garcia plaintiffs came to a global resolution of
their wrongful death lawsuits against Avjet Corporation,
reaching a settlement of $11.7 million prior to the beginning of
the punitive damages phase of the trial.
Earlier, on July 2, 2003, a jury of 8 women and 4 men found
Avjet Corporation and Robert Frisbie negligent and held
responsible for the wrongful deaths of Marissa Witham and
brothers Joseph and Jose Aguilar. The Witham vs. Avjet
Corporation (Case No. BC 270776) and Garcia vs. Avjet
Corporation (Case No. BC 270907) cases were consolidated for
trial, which began June 5, 2003 in Los Angeles Superior Court
before the Hon. Susan Bryant-Deason.
Plaintiffs Lyle and Laurece Ann Witham had been awarded $8.5
million by the jury for the wrongful death of their 22-year old
daughter, Marissa Witham, who had worked in the research
department for FOX TV affiliate, KTTV-TV in Los Angeles, CA.
before her death and who had formerly been a reporter for Santa
Monica CityTV. Through the settlement, they will receive $9.5
million. They were represented by Brian J. Panish from the Santa
Monica, CA. law firm of Greene, Broillet, Panish & Wheeler, LLP
and J. Clark Arestei with the Los Angeles, CA. law firm of Baum,
Hedlund, Arestei, Guilford & Schiavo.
Plaintiff Aurora Garcia (paternal grandmother) had been awarded
$1.7 million by the jury for the wrongful deaths of her two
grandsons, 24-year old Joseph Aguilar and 29-year old Jose
Aguilar, deceased residents of Los Angeles. With the settlement,
she will receive $2.2 million. Joseph Aguilar had been a
chemical reactor operator, and Jose Aguilar had been an
insurance claims adjuster. Their mother and aunt were also
killed in the crash, and Mrs. Garcia is the sole surviving heir.
She was represented by Kevin Boyle with Greene, Broillet, Panish
& Wheeler, LLP.
"The deaths of Marissa Witham and Joseph and Jose Aguilar are
all the more tragic," said Brian Panish, "because Avjet put
profits ahead of safety. The Defendants knowingly flew into the
face of danger when they attempted to land under unsafe, stormy
weather conditions at Aspen Airport. Not only did they violate
the airport's night landing curfew, but they disregarded nearly
twenty federal, state and local regulations. Fifteen innocent
passengers were killed. If their deaths are to have any meaning,
it is our hope that today's resolution will send a clear message
to pilots and private air charter companies everywhere to obey
the air safety rules and regulations intended for the public's
protection."
Marissa Witham and brothers Joseph and Jose Aguilar were three
of the 15 passengers and 3 crew members that departed Los
Angeles, CA. on March 29, 2001 for a trip to Aspen, CO. on a
private Gulfstream III that had been chartered from Burbank, CA.
based Avjet Corporation. Flown by Avjet employee, pilot Robert
Frisbie, the plane crashed that evening on approach for landing
at Aspen-Pitkin County Airport, killing all 18 on board.
CALICO COMMERCE: Plan Provides for Resolution of Class Claim
------------------------------------------------------------
Calico Commerce, Inc., announced that on June 27, 2003, the U.S.
Bankruptcy Court approved the Disclosure Statement relating to
the joint Plan of Reorganization filed by Calico and its
Official Committee of Equity Security Holders, enabling the
Company to commence soliciting approval of the Plan.
The Company and the Equity Committee filed the Plan and
Disclosure Statement on June 30, 2003, and expect to distribute
voting materials to affected parties beginning on or about July
10, 2003. A hearing before the Bankruptcy Court on confirmation
of the Plan is expected on August 14, 2003.
The plan provides for the payment in full of all undisputed,
non-contingent claims of creditors against the Company, with all
remaining assets to be distributed to the Company's
stockholders.
The Plan also provides for resolution of the class claim filed
in the Company's chapter 11 case by the plaintiffs in the IPO
laddering class action lawsuit pending in the United States
District Court for the Southern District of New York. The Plan
incorporates a compromise reached in principle between the
Company, the Equity Committee, counsel for the class action
plaintiffs, and the director-defendants who had filed indemnity
claims against the Company. The compromise provides that
jurisdiction and venue over the class action claim will be
transferred for settlement or judgment to the District Court.
The sole sources of recovery on the claim are to be the proceeds
of directors' and officers' insurance policies issued to the
Company, and certain potential claims to be assigned by the
Company to a Litigation Trust established for the benefit of the
plaintiffs holding the class action claim. These terms are
consistent with the global settlement agreement between the
plaintiffs and the issuer defendants in the over 300
consolidated IPO laddering lawsuits announced by the Plaintiffs'
Executive Committee on June 26, 2003.
After confirmation of the Plan of Reorganization, distribution
to creditors and equity holders, final resolution of the
securities class action litigation, and entry of the final
decree in the bankruptcy proceeding, the Company expects to
dissolve.
"We are pleased with the approval of the Plan of Reorganization
by the U.S. Bankruptcy Court and believe it to be the best
outcome available for all concerned. The Regent Pacific
Management team brought into the Company in June 2001 examined
all potential offers and outcomes before determining that the
sale of technology and operating assets to Peoplesoft offered
the best resolution," said James Weil, Calico CEO and a Managing
Director of Regent Pacific.
Copies of the Plan and Disclosure Statement can be obtained by
contacting the Company's noticing agent, Poorman-Douglas,
Corporation, at 877/205-2137.
Calico Commerce filed a voluntary petition under Chapter 11 of
the U.S. Bankruptcy Code on December 14, 2001, after executing
an agreement to sell substantially all of its operating assets
to PeopleSoft, Inc.
For more details, contact James Weil of Calico Commerce, Inc. by
Phone: 650/269-1728 or by E-mail: jamesweil@hotmail.com
COSTA RICA: Lawsuits V. Dundee Ranch Academy Under Consideration
----------------------------------------------------------------
Parents brought their teenagers to the Dundee Ranch school,
which described itself as a "supportive boarding school." But a
different picture has emerged amid allegations of torture and
abuse, police raids, a Costa Rican court inquiry, U.S. Embassy
intervention and talk of class action lawsuits against the
Academy at Dundee Ranch and its operators, according to The
Oregonian.
Robin Crawford, for example, reportedly received an emergency
call at her Oregon home to come to get her son, who had run away
from the school and was staying with a San Juan family. Ms.
Crawford said she learned, while retrieving her son Cody, of the
endless rules the school implemented, the torture and abuse
suffered by the students.
Ms. Crawford said she has been contacted by at least two
attorneys in two states, seeking to initiate class action
lawsuits against the ranch.
Cody, along with other Dundee Ranch students, gave closed-court
testimony to a judge in Costa Rica before leaving the country
with his mother in late May.
PANI, Costa Rica's child welfare agency, is investigating
complaints of abuse against Dundee Ranch, which has closed. Ken
Kay, president of the specialty schools association with which
Dundee Ranch is associated, will try to reopen Dundee Ranch this
month, according to news reports.
DUKE ENERGY: NC Lawsuits Charge ERISA Violation, Insider Trading
----------------------------------------------------------------
Since April 2002, 17 shareholder class actions have been filed
against Duke Energy: 13 in the United States District Court for
the Southern District of New York and four in the United States
District Court for the Western District of North Carolina.
The 13 lawsuits pending in New York were consolidated into one
action and included as co-defendants Duke Energy executives and
two investment banking firms. In December 2002, the New York
court granted in all respects the defendants' motion to dismiss
the plaintiffs' claims.
The four lawsuits pending in North Carolina name as co-
defendants Duke Energy executives. Two of the four North
Carolina suits have been consolidated and involve claims under
the Employee Retirement Income and Security Act relating to Duke
Energy's Retirement Savings Plan. This consolidated action names
Duke Energy board members as co-defendants.
In addition, Duke Energy has received three shareholder
derivative notices demanding that it commence litigation against
named executives and directors of Duke Energy for alleged
breaches of fiduciary duties and insider trading. Duke Energy's
response to the derivative demands is not required until 90 days
after receipt of written notice requesting a response.
The class actions and the threatened shareholder derivative
claims arise out of allegations that Duke Energy improperly
engaged in "round trip" trades which resulted in an alleged
overstatement of revenues over a three-year period. The
plaintiffs seek recovery of an unstated amount of compensatory
damages, attorneys' fees and costs for alleged violations of
securities laws.
In one of the lawsuits, the plaintiffs assert a common law fraud
claim and seek, in addition to compensatory damages,
disgorgement and punitive damages. Duke Energy intends to
vigorously defend itself, the Company, and its named executives
and board members against these allegations.
In 2002, Duke Energy responded to information requests and
subpoenas from the FERC, the Securities and Exchange Commission
(SEC), and the Commodity Futures Trading Commission (CFTC), and
to grand jury subpoenas issued by the U.S. Attorney's office in
Houston, Texas. All information requests and subpoenas seek
documents and information related to trading activities,
including so-called "round-trip" trading. Duke Energy received
notice in mid-October that the SEC formalized its investigation
regarding "round-trip" trading. Duke Energy and the Company are
cooperating with the respective governmental agencies.
Duke Energy submitted a final report to the SEC based on a
review of approximately 750,000 trades made by various Duke
Energy subsidiaries between January 1, 1999 and June 30, 2002.
Outside counsel conducted an extensive review of trading,
accounting and other records, with the assistance of Duke Energy
senior legal, corporate risk management and accounting
personnel. Duke Energy identified 28 "round-trip" transactions
done for the apparent purpose of increasing volumes on the
Intercontinental Exchange and 61 "round-trip" transactions done
at the direction of one of Duke Energy's traders that did not
have a legitimate business purpose and were contrary to
corporate policy.
As a result of the trading review, the Company has taken
appropriate disciplinary action and put in place additional risk
management procedures to improve and strengthen the oversight
and controls of its trading operations. The Company has also
reconfirmed to employees that engaging in simultaneous or
prearranged transactions that lack a legitimate business
purpose, or any trading activities that lack a legitimate
business purpose, is against company policy.
As a result of Duke Energy's findings in the course of its
investigation related to the SEC inquiry on "round-trip" trades,
DENA identified accounting issues that justified adjustments
which reduced its operating income by $11 million during 2002.
An additional $2 million charge was recorded in other Company
business segments related to these findings. Duke Energy
completed its analysis of such round-trip trades in 2002.
In October 2002, the FERC issued a data request to the "Largest
North American Gas Marketers, As Measured by 2001 Physical Sales
Volumes (Bcf/d)," including DETM. In general, the data request
asks for information concerning natural gas price data that was
submitted by the gas marketers to entities that publish natural
gas price indices. DETM responded to the FERC's data request and
is also responding to requests that the CFTC has made for
similar information. Management is unable to predict what, if
any, action the FERC and the CFTC will take with respect to
these matters.
IMCLONE SYSTEMS: Court Dismisses Certain Directors From NY Suit
---------------------------------------------------------------
Beginning in January 2002, a number of complaints asserting
claims under the federal securities laws against Imclone Systems
Inc. and certain of its directors and officers were filed in the
U.S. District Court for the Southern District of New York.
Those actions were consolidated under the caption Irvine
v. ImClone Systems Incorporated et al., No. 02 Civ. 0109 (RO),
and on September 16, 2002, a consolidated amended complaint was
filed in that consolidated action, which plaintiffs corrected in
limited respects on October 22, 2002.
The corrected consolidated amended complaint named as defendants
the Company, as well as:
1) Dr. Samuel D. Waksal, former President and Chief
Executive Officer
2) Dr. Harlan W. Waksal, former President and Chief
Executive Officer and current Chief Scientific Officer
3) Robert F. Goldhammer, former Chairman of the Board of
Directors and current director
4) Richard Barth,
5) David Kies,
6) Paul Kopperl,
7) John Mendelsohn and
8) William Miller,
9) John Landes, former General Counsel, and
10) Ronald Martell, Vice President for Marketing and Sales
The complaint asserted claims for securities fraud under
sections 10(b), 20(a) and Rule 10b-5 of the Securities Exchange
Act of 1934, on behalf of a purported class of persons who
purchased our publicly traded securities between March 27, 2001
and January 25, 2002. The complaint also asserted claims against
Dr. Samuel D. Waksal under section 20A of the Exchange Act on
behalf of a separate purported sub-class of purchasers of the
Company's securities between December 27, 2001 and December 28,
2001.
The complaint generally alleged that various public statements
made by or on behalf of the Company or the other defendants
during 2001 and early 2002 regarding the prospects for FDA
approval of ERBITUX were false or misleading when made, that the
individual defendants were allegedly aware of material non-
public information regarding the actual prospects for ERBITUX at
the time that they engaged in transactions in the Company's
common stock and that members of the purported stockholder class
suffered damages when the market price of the Company's common
stock declined following disclosure of the information that
allegedly had not been previously disclosed.
The complaint sought to proceed on behalf of the alleged class
described above, sought monetary damages in an unspecified
amount and seeks recovery of plaintiffs' costs and attorneys'
fees.
On November 25, 2002, all defendants other than Dr. Samuel D.
Waksal filed a motion to dismiss the complaint for failure to
state a claim.
On June 3, 2003, the court granted that motion in part,
dismissing the complaint as to defendants Messrs. Goldhammer,
Barth, Kies, Kopperl, Landes, Martell, Mendlesohn and
Miller, but not dismissing it as to the Company, Dr. Harlan W.
Waksal and Dr. Samuel D. Waksal.
IMCLONE: Shareholders File Consolidated Amended Complaint in NY
---------------------------------------------------------------
Beginning on January 13, 2002, and continuing thereafter, nine
separate purported shareholder derivative actions have been
filed against members of Imclone Systems Inc.'s board of
directors, certain of its present and former officers, and the
Company, as nominal defendant, among others, advancing claims
based on allegations similar to the allegations in the federal
securities class action complaints.
Four of these derivative cases were filed in the Delaware Court
of Chancery and have been consolidated in that court under the
caption In re ImClone Systems Incorporated Derivative
Litigation, Cons. C.A. No. 19341-NC.
Three of these derivative actions were filed in New York State
Supreme Court in Manhattan, (styled Boghosian v. Barth, et al.,
Index No. 100759/02, Johnson v. Barth, et al. Index No.
601304/02, and Henshall v. Bodnar, et al., Index No. 603121/02)
and have been consolidated under the caption In re ImClone
Systems, Inc. Shareholder Derivative Litigation, Index No. 02-
100759.
All of these state court actions have been stayed in deference
to proceeding in two purported derivative actions, Lefanto v.
Waksal, et al., No. 02 Civ. 0163 (RO) and Forbes v. Barth, et
al., No. 02 Civ. 1400 (RO), which have been filed in the U.S.
District Court for the Southern District of New York and have
been consolidated under the caption In re ImClone Systems, Inc.
Shareholder Derivative Litigation, Master File No. 02 CV 163
(RO).
A verified consolidated amended complaint in these federal
actions was filed on June 16, 2003.
It asserts, purportedly on behalf of the Company, claims
including breach of fiduciary duty by certain members of the
Company's board of directors and current and former officers,
among others, based on allegations including that they engaged
in transactions in the Company's common stock while in
possession of material, non-public information concerning the
regulatory and marketing prospects for ERBITUX, or improperly
disclosed such information to others, and that they failed to
maintain adequate controls and to exercise due care with regard
to the Company's ERBITUX application to the FDA and certain
public statements by or on behalf of the Company.
No response to the complaints in those actions has been required
to date. Under the current schedule in the consolidated federal
actions, a response to the verified consolidated complaint is
due on September 12, 2003.
The Company intends to vigorously defend itself against the
claims asserted in these actions, which are in their earliest
stages. The Company is unable to predict the outcome of these
actions at this time. Because the Company does not believe that
a loss is probable, no legal reserve has been established.
INDIAN FUND: Congress Drafts Bill To Resolve Class Action Suit
--------------------------------------------------------------
Republicans and Democrats alike are lining up against a rider in
a spending bill that Rep. Norman Dicks, D-Bremerton, and the
Interior subcommittee chairman Charles Taylor are promoting in
order to reach settlements in an Indian class-action lawsuit
against the U.S. Department of the Interior, reported The
Seattle Times.
To Rep. Dicks, the settlements would mean good government -- a
way to stop wasting money in legal fights about impossibly bad
bookkeeping that dates back to the late 1800s. The money, he
said, would be better spent on tribal health care or schools,
and a list of other items in the Interior spending bill.
"The tribes are getting not one cent" of the money going toward
the litigation," said Mr. Dicks, the top Democrat on the
Interior subcommittee. "It is ridiculous to continue this for
the accountants and the lawyers." Moreover, said Rep. Dicks,
"the idea that there is some grandiose billions of dollars out
there is crazy; [the financial claims are] "wildly, wildly
excessive."
But Native Americans do not echo this way of thinking about the
Indian Trusts. Those involved in the lawsuit want a credible
accounting of the money. In 1996, a handful of Native Americans
went to court seeking royalties from the federal government for
oil, gas, timber and other activities that have taken place on
their lands. Over more than a century, they say, the government
failed to adequately track and distribute some $137 billion owed
them.
The outcome of this issue could affect at least 230,000 Indian
account holders nationwide; the plaintiffs believe the number
could be roughly twice that. While Indians involved are open to
settling, they say they are opposed to the terms the Interior
subcommittee wants to force on them.
The provision drafted by aides to House Appropriations Interior
Subcommittee Chairman Charles Taylor, R-N.C., has some members
from both parties gearing up to amend or sink it after Congress
returns from the Fourth of July recess. Some of the members do
not like the provision in Chairman Taylor's measure that would
give Indian landowners a year to voluntarily settle before the
government would step in and establish a process to resolve
outstanding accounts.
For accounts that are not voluntarily settled, the Interior
Department would use statistical sampling to determine an error
rate for the accounts and other factual information as well to
determine how much each individual would receive. The provision
prohibits any downward adjustments.
House Resources Chairman Richard Pombo, R-Calif., does not think
Chairman Taylor's measure is the solution. Chairman Pombo has
announced a hearing this week into how best to handle the issue.
Some committee Democrats, who for now are deferring to Mr.
Pombo, are also looking into other alternatives for resolution
of the problem.
The issue of the Indian trust accounts dates back to the late
1800s when the U.S. government began allotting lands to Indians
under a policy of assimilation. Even though the Indians owned
the land, the federal government was to act as trustee. Third
parties would be allowed to come onto Indian lands to utilize
the resources of the Indian lands. And the United States
government, as trustee, was responsible for collecting the
royalties for the oil, gas, logging, grazing and other
activities on the properties, and then for distributing the
money to the Indian landowners. However, the plaintiffs in the
class-action lawsuit contend the government lost and diverted
the funds, thereby denying the landowners billions of dollars in
royalties.
Although the Interior Department has acknowledged mismanagement,
officials have said it would be nearly impossible to account for
every transaction. In the last decade, some estimate the
government has spent at least $750 million investigating the
problem, buying computers and paying lawyers.
MED-PRO: Health Canada Advises of Counterfeit Lipitor in U.S.
-------------------------------------------------------------
Health Canada is advising consumers about reports in the U.S. of
counterfeit Lipitor, a cholesterol-lowering drug. These
counterfeit drugs are identifiable by packaging and labeling
that states the product has been repackaged by the company MED-
PRO.
On May 26, 2003, Pfizer Canada Inc., the manufacturer of Lipitor
for the Canadian market, issued a notice to Canadian pharmacies,
drug wholesalers and pharmacy associations informing them of
this matter. The company states they have received no
information or complaints to indicate any counterfeit Lipitor
has been distributed in Canada.
As a precaution, Health Canada is issuing this advisory to alert
consumers, health care professionals, and the provincial
Ministries of Health to this matter as well as to the potential
safety issues related to the use of the counterfeit Lipitor
tablets.
On May 23, 2003, the U.S. Food and Drug Administration (FDA)
issued its first alert on counterfeit Lipitor, advising of
specific lots of the drug being counterfeit. The FDA has
subsequently issued a broader alert on June 3, 2003 advising
that all Lipitor drugs are counterfeit if they contain packaging
or labeling that states: "Repackaged by: Med-Pro, Inc.,
Lexington, Neb 68850". The discovery of the counterfeit Lipitor
has resulted in Albers Medical Distributors Inc., of Kansas
City, MO. as well as H.D. Smith Wholesale Drug Co., of
Springfield, Ill. to recall all Lipitor products repackaged by
MED-PRO.
Consumers in Canada are advised to check the packaging and label
very carefully before using Lipitor. Consumers who have any of
the product stating "Repackaged by: MED-PRO, INC. Lexington, NE
68850" should not use the product and return the bottle to the
pharmacy where it was purchased. Consumers who do not have the
product in its original packaging should contact their
pharmacist. Sometimes, pharmacists will put medications in
dosettes (especially for elderly people, a common target for
lipid-lowering medications), which is a container for pills with
compartments labeled 'AM, PM, evening' as a reminder and a
preventive measure against double-dosing.
If any bottles of the counterfeit Lipitor are found in Canada,
individuals and health professionals are asked to also contact
the closest Health Products and Food Branch Inspectorate
Operational Centre at the numbers listed below.
The counterfeit pills are reportedly slightly thicker than the
authentic Lipitor tablets, dissolve more quickly and have a
bitter taste.
On June 17, 2003, the FDA also announced that its Forensic
chemistry centre in Cincinnati Ohio determined that the
counterfeit tablets tested to date do contain atorvastatin, the
active ingredient in Lipitor. However, the effectiveness of the
product has not been established. The Forensic Chemistry
Centre's analysis to date has not identified any known harmful
substances in the counterfeit tablets, although analytical
testing continues. The fake Lipitor pills contain up to 10% of
an unknown substance. The effectiveness of these counterfeit
pills is unknown and they are unlikely to help lower
cholesterol.
Consumers should consult with their pharmacist and their
physician if they have experienced any adverse effects from
taking Lipitor (or atorvastatin - the active ingredient in
Lipitor).
For more information contact Canadian Adverse Drug Reaction
Monitoring Program (CADRMP), Marketed Health Products
Directorate, HEALTH CANADA at OTTAWA, Ontario, K1A 1B9 (Address
Locator: 0201C2), by Phone: (613) 957-0337, by Fax:
(613) 957-0335, or by E-mail: cadrmp@hc-sc.gc.ca
MATAV-CABLE: Israeli Residents File Suit Over Subscription Fees
---------------------------------------------------------------
Matav-Cable Systems Media Ltd. (Nasdaq: MATV), a leading Israeli
provider of digital cable television services, announced that it
received a motion that was filed on June 29, 2003 in the Tel-
Aviv-Jaffa District Court for the approval of a class action
against the Company by three Israeli residents.
The plaintiffs seek recognition of their action as representing
at least 100,000 subscribers. According to the claim, Matav
charged its subscribers a fee which is higher than the fee it
was entitled to charge. The plaintiffs claim that the Company
neither gave its subscribers the 10% discount they were entitled
to, under the terms of its previous franchises, nor did it
implement the 1996 ICP settlement.
The 1996 ICP settlement, which was approved by the Antitrust
court on June 30th, 1996, stated that the Company will not
increase the subscription fees during the settlement period
(until June 1999) beyond the fees the Company charged its
subscribers on the date of the approval by the court, plus real
yield increase (beyond the CPI increase) of 1.9% annually.
If the motion for a class action is approved, the court will be
requested to instruct Matav to compensate the subscribers by a
total sum of NIS 100,000,000 as of the date of the motion. The
company is studying the details of the claim.
Matav is one of Israel's three cable television providers,
serving roughly 25 percent of the population. Matav's
investments include 7.4 percent of Partner Communications Ltd.,
a GSM mobile phone company, and 10 percent of Barak I.T.C.
(1995), one of the three international telephony-service
providers in Israel.
For more information, contact Ori Gur-Arieh, Counsel for Matav
Cable Systems, by Phone: +972-9-860-2261 or Ayelet Shaked
Shiloni, Integrated IR, by Phone US: +1-866-447-8633 / Israel:
+972-3-635-6790 or by E-Mail: ayelet@integratedir.com
MEDIA ARTS: Dealers Ask TX Court to Certify Class Action Lawsuit
----------------------------------------------------------------
Thomas Kinkade, owner of Media Arts Group Inc., sells the
reproductions of cheery home and street scenes by the self-
styled "Painter of Light," himself, but he is now facing at
least 10 lawsuits or arbitration hearings lodged by the unhappy
owners of Kinkade galleries, that allege they were supposed to
receive the Media Arts paintings and other specialty items
within a dealer network, according to a report by the San Jose
Mercury News.
Among other issues, these dealers allege that Media Arts
undercut them by selling Kinkade prints to several discount
outlets at lower prices than dealers were charged. At Media
Arts' request, seven of the 10 suits, originally filed in a
variety of jurisdictions, have been moved from the courts to
arbitration hearings. Resolution of the various actions could
take anywhere from a few months to a year, participants say.
A request is now pending before a Galveston, Texas, district
judge to certify the dealers' complaints as a class-action
lawsuit, which then would involve all the Kinkade dealers in the
nation.
Media Arts and the dealers also disagree about what was sold to
the discounters. Media Arts claims the sales to the discounters
were paper reproductions, not on canvas. Maurice Tynes of Lake
Charles, Louisiana, attorney for one of the dealers, Al Dahl,
said the only difference between what was sold to the discounter
and what was sold to the dealers to be placed in the official
Kinkade galleries, was the frames.
Al Dahl told the Fort Worth Star-Telegram that Media Arts began,
in November 2001 to sell Kinkade lithographs to a retail
discounter called Tuesday Morning for 50 percent to 80 percent
less than the official dealers' prices. Mr. Dahl once owned a
Kinkade gallery on Fisherman's Wharf in San Francisco, three in
Marin County and three in Texas -- now all closed. Then, Media
Arts spread out and was systematically undercutting the dealers
by making sales through the retail chain Hobby Lobby; a
Tupperware-style home sales retailer called Home Interiors, and
at military bases, said Mr. Dahl.
"Why would you spend a couple thousand dollars when you can get
the same thing for $299?" asked Mr. Dahl.
Media Arts this week referred questions about the lawsuits to a
New York City public relations firm, Rubenstein Associates.
MEDTEL: Court Dismisses Appeal Over Pacemaker Decision
------------------------------------------------------
Members of a class action scored in the battle that ensued over
a potentially faulty heart pacemaker as the full bench of the
Federal Court upheld a decision made against Medtel, the
Australian distributors of Tempo Pacemakers.
Australia's The Age tells in a news report that earlier this
year, the Federal Court awarded 70-year-old Kevin Courtney, the
first plaintiff from a 550-strong class action against Medtel,
about $10,000 compensation for his pain and suffering after he
had the Tempo pacemaker removed in 2000.
Lawyers for Medtel appealed to the full bench of the Federal
Court, arguing the pacemaker had not actually failed while being
used by Mr. Courtney.
But Justice Michael Moore, Justice Catherine Branson and Justice
Michael Jacobson dismissed the claim.
Justice Branson stated, "I reject the argument that the mere
fact that it was known at the time of trial that Mr. Courtney's
pacemaker had not failed prematurely meant that it could not be
demonstrated that Mr. Courtney's pacemaker was not of
merchantable quality ... at the time of its supply to Mr.
Courtney."
A hazard alert was issued on June 5, 2000, for a batch of Tempo
Pacemakers manufactured by US company Pacesetter between March
1997 and December 1998. The alert warned the pacemakers had an
increased risk of early battery depletion.
Following the alert, Mr. Courtney was advised to replace the
pacemaker, which he did on September 1, 2000. Accordingly, it
was found to be working normally when removed but the test could
not be carried out while it was still in his body.
Mr. Courtney's lawyer Peter Cashman said, "The decisions of
Justices Branson, Jacobson and Moore confirm that Australian
consumers are entitled to expect their pacemaker to be
manufactured properly and to be free of additional risks of
failure."
To date, Medtel had declined to settle all of the claims in the
class action but belatedly agreed to pay compensation to those
patients who had devices which failed, Dr Cashman said,
according to the news report.
NIGERIA FOOTBALL: May Face Lawsuit Over Game Fiasco
---------------------------------------------------
The Nigeria Football Association (NFA), along with US match
organizers Omega Sports, may be defending itself against a class
action suit from Nigerians and other people in the USA who lost
potentially hundreds of thousands of dollars following the
cancellation of the Super Eagles' friendly match against
Ecuador, Africa News Services reports.
Signatures are being collected in support for the action. A
formal complaint to FIFA, football's governing body, is also
being filed.
Most of the prospective spectators paid hundreds of dollars in
hotel bookings, flight tickets and match tickets. Plus, there is
the emotional angle for those who canceled family trips and
visits to fly into Texas for the match.
Nigerian officials claim the game was called off at the last
minute due to the on-going nationwide strike. However, other
sources disclose that the game was called off when the
appearance of top stars Austin Okocha and Nwankwo Kanu could not
be guaranteed for the game.
PIONEER ELECTRONICS: Recalls Car Amplifiers Due to Safety Hazard
----------------------------------------------------------------
Pioneer Electronics (USA) Inc. announced the recall of the
following four car amplifiers:
1) GM-X572,
2) GM-X574,
3) GM-X972 and
4) GM-D500M
These products have been sold since November 2002.
Pioneer has determined that the installation of these car
amplifiers, in a manner other than as recommended by Pioneer,
may result in a potential safety hazard under certain
conditions. Pioneer is not currently aware of any injury or
vehicle damage resulting from the improper installation of these
car amplifiers.
Consumers who own any of these amplifiers should contact the
dealer where they purchased the product for a free repair (if
available) or for a different model amplifier or for a refund.
These car amplifiers should be returned even if the owner
believes it was properly installed or if the owner has
previously obtained service for the amplifier or received a
replacement amplifier.
"Pioneer strongly encourages consumers to return their car
amplifier to their local retailer for free repair or
replacement. By replacing their amplifier, consumers can
continue to enjoy the highest quality sound and performance from
Pioneer products without concern for problems related to
improper installation," said Hiroaki Matsubara, president of the
Mobile Entertainment Division of Pioneer Electronics (USA) Inc.
"Pioneer sincerely apologizes for any inconvenience this may
cause our customers."
Pioneer's primary concerns are the consumers' safety and
satisfaction with the quality and operation of their Pioneer
products.
The improper installation of these amplifiers may result in the
amplifier overheating during use, the exterior surface becoming
hot to the touch, the appearance of smoke and, the amplifier
becoming inoperable.
More information about this issue is available on
http://www.pioneerelectronics.comor by calling Pioneer's toll
free customer service line in the U.S. at 800-421-1636.
Pioneer Electronics (USA) Inc. is headquartered in Long Beach,
Calif., and its U.S. Web address is www.pioneerelectronics.com .
Its parent company, Pioneer Corporation, is a leader in optical
disc technology and a preeminent manufacturer of high-
performance audio, video, computer and cable television
equipment for the home, car and business markets. Pioneer
Corporation focuses on four core business domains including DVD,
display technologies, Digital Network EntertainmentT and
components. Founded in 1938 in Tokyo, Pioneer Corporation and
its affiliates employ more than 34,000 people worldwide. Its
shares are traded on the New York Stock Exchange (NYSE: PIO).
For further information contact Amy Friend by Phone:
+1-310-952-2507 or by E-mail: amy.friend@pioneer-usa.com; or
Jaed Arzadon, by Phone: +1-310-952-2451 or by E-mail:
jarzadon@pioneer-usa.com.
RITE AID CORP: Settles PA Lawsuit Over Employee Benefits Plans
--------------------------------------------------------------
The investigations conducted by the U.S. Department of Labor and
by an independent trustee of matters related to Rite Aid
Corporation's employee benefits plans have been concluded.
In addition, the class action lawsuit filed on behalf of the
plans and their participants in the United States District Court
for the Eastern District of Pennsylvania has been settled.
Under the agreement, the Company's insurance companies paid
$5,500 and in November 2002 the Company paid $4,000 into a
settlement fund for the benefit of plan participants.
The Company also agreed to implement certain changes in the way
in which the Company administers its employee benefit plans and
to maintain the current level of benefits through December 31,
2006.
On March 11, 2003, the District Court approved the settlement
and dismissed the complaint with prejudice.
TAIWAN: Consumer Foundation Seeks Compensation For SARS Victims
---------------------------------------------------------------
The Taiwan Consumers' Foundation (TCF) recently announced its
plan to apply for financial compensation on behalf of the 77
victims of SARS in Taiwan who were not medical personnel,
reported the China Post.
If the application is successful, the surviving family of each
victim could receive up to NT$12 million. The Foundation
indicated that filing a class action suit was one of the means
that might be employed as well.
At the recent news conference, the TCF proposed a "one goal, two
stages" plan for soliciting government compensation. The first
stage would yield NT$2 million for each victim's family, based
on the temporary compensation guidelines passed into law after
the earthquake in 1999.
So far, the government has given NT$100,000 to each victim's
family as "consolation money," according to the foundation.
The second stage would give each family between NT$7 million and
NT$12 million, depending on whether the victim contracted SARS
due to negligence and unsafe isolation conditions in a public or
private hospital.
The foundation said it would apply to the government for
compensation for the families of victims who died in public
hospitals. For families of victims who died in private
hospitals, the foundation said it would file a class-action
lawsuit to obtain such compensation under the Consumer
Protection Law and other regulations.
The TCF added that if the lawsuit is successful, it would be the
largest class-action lawsuit, in terms of the number of
plaintiffs and the amount of compensation, in the history of
Taiwan.
Of the 84 SARS-inflicted deaths in Taiwan, noted a TCF official,
two were doctors and five were nurses, leaving 77 victims who
were not medical professionals.
TOSHIBA AMERICA: Recalls 3,400 Units of Rear Projection TVs
-----------------------------------------------------------
Toshiba America Consumer Products, Inc., of Wayne, N.J., in
cooperation with the U.S. Consumer Product Safety Commission,
recalls 3,400 units of Rear Projection Televisions.
If the capacitors short circuit due to a very high electrical
surge, such as from a lightening strike, the metal parts on the
television could present a shock or electrocution hazard. In
addition, the metal jacks on the back of the television or
another metal box attached to the television could present a
shock or electrocution hazard as a result of the capacitors'
failure.
This program includes a limited number of units of the following
Toshiba rear projection televisions: Model 50A62, Model 51H83,
and Model 57H83. To determine if your television set is affected
by this corrective action, go to
http://www.tacp.toshiba.com/safety_notice.aspand follow the
instructions.
Manufactured in the U.S.A., these products are sold at consumer
electronic stores, department stores, and mass merchandisers
nationwide from April 21, 2003 through May 8, 2003 for between
$999 and $2200.
Consumers who have an affected television will receive a free
replacement, which includes removal of the recalled television,
delivery and installation of the replacement.
For more information, contact the company by Phone:
(877) 290-6064, 24 hours a day, 7 days a week or go to
http://www.tacp.toshiba.com/service/safety_notice.asp
UNITED STATES: Women at U.S. Mint In Denver Allege Sex Bias
-----------------------------------------------------------
A group of female employees at the U.S. Mint in Denver has filed
a class action complaint with the Treasury Department, accusing
managers at the Mint of fomenting a "hostile, gender-based work
environment," reported the Denver Post.
The complaint describes the Mint as a place where women are kept
from advancement, solicited for sex by their mangers and co-
workers, subjected to pornography and physically threatened and
assaulted.
Thirty-two women have signed the complaint, said their lawyer,
Lynn Feiger.
The women who filed the complaint first notified the Treasury
Department of their concerns in March through an informal
complaint, said Ms. Feiger. A detective came to Denver from the
U.S. Mint in San Francisco to investigate, she said. But the
detective only questioned the women, and in such a way that they
found intimidating, according to the complaint.
"The detective was not investigating the charges; he was
investigating the people who filed the charges," Ms. Feiger
said.
An administrative judge in Washington now will decide whether
the matter warrants a formal hearing, said Ms. Feiger. If it
does go to a hearing, the administrative judge will hear from
both sides and issue a ruling. Then, the Treasury Department and
the complainants each will have the right to appeal that
decision in U.S. District Court, she said.
WYOMING: Judge Sets July 11 Deadline for Inmates Protection Plan
----------------------------------------------------------------
A federal judge has given attorneys for the state and ACLU until
July 11 to resolve their remaining differences over a plan for
preventing assaults against inmates at the Wyoming State
Penitentiary, reported the Associated Press Newswires.
The lawsuit contained a separate class-action claim which
demanded that the state adopt policies to help ensure that
inmates are protected from assault. The state's attorney
general's office and the ACLU have been hammering out the plan
for the past five months.
U.S. District Court Judge Clarence Brimmer said, at the recent
hearing, that the two sides seem to have common ground on parts
of the four unresolved issues.
The four unresolved issues include, as a first issue, whether
the state would benefit from investigating previous assaults.
ACLU attorney Steven Pevar said such investigations could
uncover problems and prevent future assaults.
"Even a minor assault could expose an institutional deficiency
that could be an accident waiting to happen," said Mr. Pevar.
Mr. Pevar also said such investigations could uncover problems
with certain prison staff: "Was there somebody who shouldn't be
on that work force any longer?" he asked.
The state and the ACLU now have agreed on how to carry out
future assault investigations.
The second issue on which the state and ACLU disagree is over
how much information on new assaults should be disclosed to
clients of the ACLU, even if all names in the documents are
blacked out.
Another unresolved issue, the third one, is whether inmates have
the right to have their property moved with them when they are
transferred to a different part of the prison for their
protection. Inmates sent to protective custody currently forfeit
that right and also the right to visitation.
Judge Brimmer interjected at this point to say: "It almost seems
cruel and inhumane not to let a man have a radio or television
or reading material."
Attorney General Renneisen said it is merely a practical matter
not to require prison staff to move inmates' property along with
them, especially considering such moves are usually only for
short periods.
"There are no constitutional rights involved here. We are
talking about issues of privilege, issues of convenience," he
said.
The fourth issue, a minor unresolved issue, is a paragraph in
the plan that says the defendants have no state liberty
interests or contractual rights in the remedial plan. The ACLU
argues that the plan is not a consent decree that allows such
rights.
* NFPA Urges FDA to Form Effective Bioterrorism Act Regulations
---------------------------------------------------------------
On July 8, the National Food Processors Association (NFPA) will
submit formal comments to the U.S. Food and Drug Administration
on the Agency's proposed regulations implementing the Public
Health Security and Bioterrorism Preparedness and Response Act
of 2002. Dr. Rhona Applebaum, NFPA's Executive Vice President
and Chief Science Officer, made the following comments on
proposed regulations addressing the establishment and management
of records, and the administrative detention of food for human
or animal consumption under the Bioterrorism Act:
"NFPA strongly supports a rigorous U.S. food security system,
and we strongly supported the Bioterrorism Act passed last year.
NFPA has urged that the regulations implementing this Act
reflect the straightforward requirements set forth by Congress,
to enhance food security in this country. We believe that such
regulations must be both effective and efficient, and not
unnecessarily burdensome to either the food industry or FDA.
"Food processors take seriously their responsibility for
producing and delivering safe food to consumers, and the food
industry has worked hard to develop a food safety system in the
United States that is second to none. The food industry's
existing systems are highly successful, effective, and well-
targeted for removing unsafe food from distribution promptly.
Therefore, any additional regulations should build upon the
solid record of success that we have achieved in this country.
"It is NFPA's belief that FDA's recordkeeping proposal does not
adequately recognize the existing food and food ingredient
tracking and recall systems that companies currently maintain.
The FDA proposal would require record details of questionable
utility, such as lot level or similar tracking. We believe that
public health protection would be better ensured by recognizing
that companies already maintain effective systems for removing
potentially unsafe foods from the channels of trade in an
emergency situation.
"On the topic of administrative detention of food for human or
animal consumption, NFPA strongly supports the appropriate
exercise of FDA's detention authority to prevent or stop the
possible introduction into commerce of food that is likely to
cause serious adverse health consequences or death to humans or
animals. This authority is a powerful tool for protecting the
public.
"We would expect the Agency to use this new administrative
detention authority only when other avenues of preventing the
product from moving in commerce are not available. The food
industry has demonstrated both the desire and ability to act
quickly and responsively to prevent the public from being
exposed to potentially harmful food. It has been and remains in
the interest of the food industry to take responsible and timely
action to ensure the safety of the U.S. food supply, in order to
protect consumers. FDA previously would have requested a
voluntary recall of the suspected product; we believe that such
a request still represents the most viable option for the
majority of situations.
"NFPA commends FDA for attempting to implement the Bioterrorism
Act within such a short time frame. We encourage the Agency to
consider our comments in developing new bioterrorism regulations
that are both effective and workable."
NFPA is the voice of the $500 billion food processing industry
on scientific and public policy issues involving food safety,
food security, nutrition, technical and regulatory matters and
consumer affairs.
*Lawyers Plan New Strategies To Fight Obesity
---------------------------------------------
In a Back Bay conference room recently, in proceedings so secret
that participants had to sign affidavits pledging their silence
about the proceedings, the groundwork was set for Boston to
become the center of a new legal battle patterned on the fight
against Big Tobacco: Big Food, reported The Boston Globe.
This battle is led by some of the same people who successfully
sued the tobacco companies for the cost of smoking-related
illnesses. And these same people are today training their sights
on the fast-food giants and others whom they see as responsible
for the nation's epidemic of obesity.
The conference was hosted by a group of professors from
Northeastern and Tufts universities. The conference chairman,
Richard Daynard, pioneered lawsuits against tobacco companies
and he and his wife have donated money from some of the legal
fees earned in that battle to fund the attack on obesity.
"I think it is going to happen much more quickly, partly because
the path already has been laid out by tobacco litigation," said
Professor Daynard, who teaches at Northeastern University School
of Law.
Obese people suing the companies that made the food that made
them fat is among the newest, and most controversial, topics in
the legal arena. Today, many reports not only suggest that most
Americans weigh too much, but two-thirds of adults are
considered overweight or obese.
Obesity-related illnesses cost an estimated $117 billion in
1999, nearly as much as tobacco related health problems, which
cost an estimated $140 million a year.
And some food companies are responding. Kraft Foods, whose
products include Oreo cookies and Velveeta, announced recently
that it would cut back on sugar and fat in some of its products
and take other health-conscious steps.
Lawyers already have filed several lawsuits against the fast
food industry, including a children's class-action lawsuit in
New York against McDonald's, blaming that company for children's
tremendous weight gain. That lawsuit charges that McDonald's
misrepresented its food by describing it as healthier than it
is.
The Public Health Advocacy Institute is a new merger of
professors from Northeastern University School of Law and Tufts
University School of Medicine that was created to explore ways
in which the law can improve public health. And it was the
institute that in turn created the fledgling obesity project to
bring together people who are talking about "food litigation."
The group itself probably will not file lawsuits, although its
research might help those who do.
Professor Daynard sees the work of the institute and the
conference as an "intellectual testing ground." For instance,
one topic discussed at the conference was suing school boards
that make deals with soda companies to sell their products on
campus. Such talk and planning is important because it is the
design of the lawsuit that wins the case, as was true in the
tobacco litigation. The big class action win in Illinois against
Philip Morris USA, was based on deceptive advertising: that
Philip Morris deceived the smokers of light cigarettes into
believing they were safer than the regular cigarettes.
Professor Daynard also sees the state laws against deceptive
advertising as a potential legal argument in food litigation.
For example the food industry should be banned from pitching
products as low-fat when they have a high sugar content, he
argues. It is a deceptive pitch in that it promotes the customer
into believing that eating the low-fat product will help him
lose weight; but what about all that sugar?
Although the experts say there are some legal similarities
between the problems caused by fat and by smoking, not everyone
is sure the same legal tactics will work. "That is the $64,000
question," said Ben Kelley, the institute's executive director a
visiting faculty member at Tufts medical school.
Professor Daynard knows the feeling of tackling a project that
many see as hopeless. Almost 20 years ago, he helped organize a
conference on a topic that then seemed like a fantasy: suing
tobacco companies. And yet, in 1998, the cigarette companies
agreed to a dramatic settlement: $246 billion to the states of
this nation to be paid over 25 years.
Professor Daynard and others say they are in this new battle,
"food litigation," for the long haul.
"This problem is not going to disappear overnight," Mr. Kelley
said. "And solutions to it are not going to arise and
effectively be put in place overnight."
Meetings, Conferences & Seminars
* Scheduled Events for Class Action Professionals
-------------------------------------------------
July 15, 2003
LEXISNEXIS PRESENTS: WALL STREET FORUM: MASS TORT LITIGATION
Mealey Publications
The Ritz-Carlton Hotel, Battery Park, New York
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
July 16-17, 2003
MANAGING MOLD LIABILITIES
Bridgeport Continuing Education
San Francisco
Contact: 818-505-1490
July 31-August 1, 2003
CLASS ACTION LITIGATION 2003: PROSECUTION AND DEFENSE STRATEGIES
Practising Law Institute
PLI New York Center
Contact: 800-260-4PLI; info@pli.edu.
August 1, 2003
CLASS ACTION LITIGATION 2003: PROSECUTION AND DEFENSE STRATEGIES
Practising Law Institute
PLI New York Center
Contact: 800-260-4PLI; info@pli.edu.
August 26-27, 2003
THE ANNUAL MANAGING MOLD LIABILITIES CONFERENCE
FROM CONSTRUCTION THROUGH TRIAL
Bridgeport Continuing Education
Contact: http://www.reconferences.com;818-505-1490
September 8-9, 2003
CORPORATE GOVERNANCE: LIABILITY OF CORPORATE
OFFICERS AND DIRECTORS
Mealey Publications
The Ritz-Carlton Hotel Amelia Island, FL
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
September 8-10, 2003
NATIONAL ASBESTOS LITIGATION CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel Chicago
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
September 11-12, 2003
MASS TORT LITIGATION TOOLS FOR PARALEGALS
Mealey Publications
The Westin Hotel, Philadelphia
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
September 15-16, 2003
SECURITIES LITIGATION & ENFORCEMENT 2003
Practising Law Institute
PLI New York Center
Contact: 800-260-4PLI; info@pli.edu.
September 18-19, 2003
REINSURANCE SUMMIT
Mealey Publications
The Westin Hotel, Chicago
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
September 19-21, 2003
THE 20TH TOBACCO PRODUCTS LIABILITY PROJECT CONFERENCE
Northeastern University School of Law
Contact: scuri@tplp.org
September 22-23, 2003
BAD FAITH CONFERENCE
Mealey Publications
The Westin Hotel, Philadelphia
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
September 26, 2003
MANAGING ENVIRONMENTAL RISKS
Bridgeport Continuing Education
Los Angeles
Contact: 818-505-1490
September 29-30, 2003
PRACTICAL SKILLS SERIES: MASS TORT LITIGATION
Mealey Publications
The Ritz-Carlton Hotel, Philadelphia
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
September 29-30, 2003
CONSUMER FINANCE CLASS ACTIONS
American Conference Institute
New York City
Contact: 1-888-224-2480; http://www.americanconference.com
October 2-3, 2003
SECURITIES LITIGATION & ENFORCEMENT 2003
Practising Law Institute
PLI New York Center
Contact: 800-260-4PLI; info@pli.edu.
October 8-9, 2003
ASBESTOS LITIGATION
American Conference Institute
New York City
Contact: 1-888-224-2480; http://www.americanconference.com
October 13-14, 2003
SILICA LITIGATION CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel, Atlanta
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
October 15, 2003
LEXISNEXIS PRESENTS WALL STREET FORUM:
PHARMACEUTICAL & MEDICAL DEVICE INDUSTRY LITIGATION
Mealey Publications
The Ritz-Carlton New York, Battery Park
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
October 16-17, 2003
LEAD LITIGATION CONFERENCE
Mealey Publications
Westin Copley Plaza, Boston
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
October 24, 2003
7TH ANNUAL NATIONAL INSTITUTE ON CLASS ACTIONS
American Bar Association
San Francisco, CA
Contact: 800-285-2221; abacle@abanet.org
November 6-7, 2003
SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION
MassTortsMadePerfect.Com
Ritz Carlton, New Orleans, Louisiana
Contact: 1-800-320-2227; register@masstortsmadeperfect.com
November 7, 2003
7TH ANNUAL NATIONAL INSTITUTE ON CLASS ACTIONS
American Bar Association
Washington, DC
Contact: 800-285-2221; abacle@abanet.org
November 10-11, 2003
FEN-PHEN LITIGATION CONFERENCE
Mealey Publications
The Four Seasons Hotel, Houston
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
November 13-14, 2003
MASS TORT LITIGATION TOOLS FOR PARALEGALS
Mealey Publications
The Westin Bonaventure Hotel, Los Angeles
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
November 13-14, 2003
ASBESTOS LITIGATION IN THE 21ST CENTURY
ALI-ABA
New Orleans
Contact: 215-243-1614; 800-CLE-NEWS x1614
November 17, 2003
WATER CONTAMINATION LITIGATION CONFERENCE
Mealey Publications
Pasadena
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
November 17-18, 2003
INSURANCE ALLOCATION CONFERENCE
Mealey Publications
The Ritz-Carlton Golf Resort, Naples, FL
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
November 18, 2003
MEDICAL MONITORING CONFERENCE
Mealey Publications
The Ritz-Carlton Huntington Hotel & Spa, Pasadena
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
December 8-9, 2003
ASBESTOS PREMISES LIABILITY CONFERENCE
Mealey Publications
The Fairmont Hotel, San Francisco
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
December 8-9, 2003
CALIFORNIA SECTION 17200 CONFERENCE
Mealey Publications
The Fairmont Hotel, San Francisco
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
December 11-12, 2003
CONSTRUCTION DEFECT AND MOLD LITIGATION CONFERENCE
Mealey Publications
The Ritz-Carlton, Lake Las Vegas, Las Vegas
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
December 12, 2003
MOLD LITIGATION 101 CONFERENCE
Mealey Publications
The Ritz-Carlton, Lake Las Vegas, Las Vegas
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
January 22-23, 2004
ENVIRONMENTAL AND TOXIC TORT MATTERS: ADVANCED CIVIL LITIGATION
ALI-ABA
Orlando (Walt Disney World)
Contact: 215-243-1614; 800-CLE-NEWS x1614
March 18-19, 2004
SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION
MassTortsMadePerfect.Com
The Fairmont, San Francisco, California
Contact: 1-800-320-2227; register@masstortsmadeperfect.com
June 10 & 11, 2004
SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION
MassTortsMadePerfect.Com
Atlantis, Paradise Island, Bahamas
Contact: 1-800-320-2227; register@masstortsmadeperfect.com
TBA
FAIR LABOR STANDARDS CONFERENCE
Mealey Publications
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
TBA
AIRLINE BANKRUPTCY LITIGATION CONFERENCE
Mealey Publications
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
* Online Teleconferences
------------------------
July 18, 2003
CLASS ACTION OVERVIEW
American Bar Association
Contact: 800-285-2221; abacle@abanet.org
ADVERSARIAL PROCEEDINGS IN ASBESTOS BANKRUPTCIES
LawCommerce.Com/Mealey's
Online Streaming Video
Contact: customerservice@lawcommerce.com
ASBESTOS BANKRUPTCY - PANEL OF CREDITORS COMMITTEE MEMBERS
LawCommerce.Com/Mealey's
Online Streaming Video
Contact: customerservice@lawcommerce.com
EXPERT WITNESS ADMISSIBILITY IN MOLD CASES
LawCommerce.Com/Mealey's
Online Streaming Video
Contact: customerservice@lawcommerce.com
INTRODUCTION TO CLASS ACTIONS AND LARGE RECOVERIES
Big Class Action
Contact: seminars@bigclassaction.com
NON-TRADITIONAL DEFENDANTS IN ASBESTOS LITIGATION
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
PAXIL LITIGATION
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
RECENT DEVELOPMENTS INVOLVING BAYCOL
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
RECOVERIES
Big Class Action
Contact: seminars@bigclassaction.com
SELECTION OF MOLD LITIGATION EXPERTS: WHO YOU NEED ON YOUR TEAM
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SHOULD I FILE A CLASS ACTION?
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THE EFFECTS OF ASBESTOS ON THE PULMONARY SYSTEM
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THE STATE OF ASBESTOS LITIGATION: JUDICIAL PANEL DISCUSSION
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TRYING AN ASBESTOS CASE
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THE IMPACT OF LORILLAR ON STATE AND LOCAL REGULATION OF TOBACCO
SALES AND ADVERSTISING
American Bar Association
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The Meetings, Conferences and Seminars column appears in the
Class Action Reporter each Wednesday. Submissions via
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New Securities Fraud Cases
CRYO-CELL: Wolf Haldenstein Commences Securities Lawsuit in FL
--------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities
class action in the United States District Court for the Middle
District of Florida, Tampa Division, on behalf of all persons
who purchased the common stock of Cryo-Cell International, Inc.
(Nasdaq: CCCEC) between March 16, 1999 and May 20, 2003,
inclusive.
The lawsuit alleges that throughout the Class Period, defendants
issued numerous false financial statements that artificially
inflated reported revenues, earning, and assets. Specifically,
the Company repeatedly recognized revenue in violation of
generally accepted accounting principles, including the
Company's own internal accounting principles; maintained
worthless assets on its balance sheets as collectible
receivables; and failed to disclose related party transactions,
among other things.
On April 14, 2003, the Company announced that it was considering
whether it would restate its financial statements in light of
certain now-perceived revenue recognition problems. On May 20,
2003, the end of the Class Period, Cryo-Cell announced that
Ernst & Young LLP, its newly approved auditor, had resigned as
the Company's auditor. The Company also announced that it was
working with its former auditor on its anticipated restatement
of financial results. During the Class Period, the Company's
stock hit a high of about $12, and for much of that time it
traded in the $4-$6 range. At the close of business on July 7,
2003, the stock finished trading at $0.92.
For more information, contact Fred Taylor Isquith, Esq., Gregory
M. Nespole, Esq., Michael J. Miske, Esq., 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 Web site:
http://www.whafh.com.
GUIDANT CORPORATION: Stull, Stull & Brody Files Suit in S.D. IN
---------------------------------------------------------------
Stull, Stull & Brody initiated a securities class action in the
United States District Court for the Southern District of
Indiana, Indianapolis Division, on behalf of purchasers of
Guidant Corporation (NYSE:GDT) publicly traded securities
between June 23, 1999 and June 12, 2003, inclusive. Aside from
the company, the defendants are:
1) Endovascular Technologies, Inc.,
2) Keith E. Brauer,
3) Ronald W. Dollens and
4) Jay Watkins.
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 materially false
and misleading statements throughout the Class Period.
Specifically, the complaint alleges that defendants issued
numerous positive statements regarding the performance of
ANCURE, a device used for the treatment of abdominal aortic
aneurysms (AAA).
As alleged in the complaint, these statements were materially
false and misleading because they failed to disclose and/or
misrepresented the following adverse facts, which were known, or
should have been known to defendants at the time they were made:
(a) that the Company had violated Food & Drug
Administration ("FDA") regulations by marketing and
selling a device (ANCURE) which had not been approved
by the FDA;
(b) that the Company failed to report to the FDA that
problems with ANCURE had resulted in more than 2,600
injuries, including 12 deaths; and
(c) that as a result of the Company's actions, the Company
would be subject to additional government scrutiny,
thereby negatively impacting its future earnings.
On June 12, 2003, the Company announced that its subsidiary,
EndoVascular Technologies (EVT), entered into a settlement
agreement with the U.S. Department of Justice relating to
certain problems with ANCURE(R). Specifically, the article
stated that under the terms of the agreement, EVT agreed to make
a payment of $43.4 million and an additional $49 million civil
settlement to the government. EVT also agreed to plead guilty to
10 felony counts, including nine for shipping misbranded
products and one count of a former employee making false
statements to the government. Prior to the disclosure of this
adverse information, the Individual Defendants and other Guidant
insiders sold more than $26.4 million of their personally-held
shares of Guidant stock to the unsuspecting public.
For more details, contact Tzivia Brody, Esq. by Mail: 6 East
45th Street, New York, NY 10017 by Phone: (toll-free)
1-800-337-4983, by E-mail: SSBNY@aol.com, by Fax: 212/490-2022,
or visit the firm's Web site: http://www.ssbny.com
LEHMAN BROTHERS: Kaplan Fox Files Securities Fraud Suit in NY
-------------------------------------------------------------
Kaplan Fox initiated a securities class action against Lehman
Brothers, Inc. and Michael E. Stanek, 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
the common stock of RealNetworks, Inc. (Nasdaq: RNWK) between
July 1, 1999 and June 30, 2001, inclusive.
The complaint alleges that Defendants issued false and
misleading analyst reports to the investing public on
RealNetworks, a global provider of software products and
services for internet media delivery, in a bid to win or
maintain lucrative banking and advisory work from the Company.
From July 1999 through June 2001, Lehman maintained its highest
rating on RealNetworks stock, despite the fact that the stock
lost approximately 90% of its value, falling from a high of
$78.59 per share in February 2000 to a low of $7.06 in April
2001.
As a result of defendants' false and misleading statements, the
market price of RealNetworks common stock was artificially
inflated, maintained or stabilized during the Class Period, to
the injury of plaintiff and the other Class members who
purchased the stock at the time relying on the integrity of the
market price of the stock.
For queries, contact Frederic S. Fox, Esq. Laurence D. King,
Esq., Donald R. Hall, Esq. by Mail: 555 Montgomery Street, 805
Third Avenue, 22nd Floor San Francisco, CA 94111, New York, NY
10022 by Phone: (415) 772-4700 or (800) 290-1952, or by Fax:
(212) 687-1980, or by E-mail: mail@kaplanfox.com.
LEHMAN BROTHERS: Kaplan Fox Files Another Lawsuit in S.D. NY
------------------------------------------------------------
Kaplan Fox initiated a securities class action against Lehman
Brothers, Inc. 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 the common stock of
RSL Communications, Ltd. (OTC: RSLCF) between July 1, 1999 and
September 30, 2000, inclusive.
The Complaint alleges that During the Class Period the Defendant
issued to the investing public false and misleading analyst
reports on RSL in a bid to win or maintain lucrative banking and
advisory work from the Company. During the Class Period, Lehman
maintained its highest rating a ("1-Buy" "1-Strong Buy"), on RSL
stock, despite the fact that the stock fell to $4 per share in
August 2000.
As a result of Defendant's false and misleading statements, the
market price of RSL common stock was artificially inflated,
maintained or stabilized during the Class Period, to the injury
of plaintiff and the other Class members who purchased the stock
at the time relying on the integrity of the market price of the
stock.
On or about April 28, 2003, the SEC issued a complaint charging
Lehman with violating numerous rules of conduct of the National
Association of Securities Dealers, Inc. ("NASD") and the New
York Stock Exchange, Inc. ("NYSE"), by issuing false and
misleading analyst reports on numerous companies, including RSL.
The complaint describes the influence and control exerted by
Lehman's investment bankers on its supposedly independent
research analysts, and details how positive ratings and research
reports on RSL issued by Defendant to the public were contrary
to Defendant's more negative assessments of the Company's true
value and prospects.
For queries, contact Frederic S. Fox, Esq. or Donald R. Hall,
Esq. by Mail: 805 Third Avenue, 22nd Floor, New York, NY 10022,
by Phone: (800) 290-1952 or (212) 687-1980, by Fax:
(212) 687-7714, or by E-mail: mail@kaplanfox.com
PEDIATRIX MEDICAL: Milberg Weiss Launches Lawsuit in S.D. 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, Miami
Division on behalf of purchasers of Pediatrix Medical Group,
Inc. (NYSE: PDX) common stock between February 7, 2002 and June
23, 2003, inclusive.
The action, numbered 03-21825-CIV, is assigned to the Honorable
James C. Paine.
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 February 7, 2002 and
June 23, 2003, thereby artificially inflating the price of
Pediatrix common stock.
The Complaint alleges that these statements were materially
false and misleading because they failed to disclose:
(1) that the defendants engaged in fraudulent "upcoding" in
its billing practices while telling the investing
public that its billing practices were legitimate; and
(2) Pediatrix materially inflated its Class Period
financial results through inclusion of these fraudulent
revenues.
On June 24, 2003, the Company issued a press release with the
headline: "Pediatrix Notified of Billing Inquiry." Contrary to
defendants' public representations that its fraudulent billing
practices were in the past, the Company announced that it had
been advised by the U.S. Attorney's Office that it was
conducting a civil investigation into Pediatrix's Medicaid
billing practices nationwide. Additionally, the Company
announced that the U.S. Attorney's Office intended to make a
document and information request, within the next few weeks.
Market reaction to the news was swift. Pediatrix's shares fell
24% or $9.90 per share, on unusually high trading volume, to
close at $32.20 per share.
For more details, contact Steven G. Schulman, Esq. by Mail: One
Pennsylvania Plaza, 49th fl., New York, NY, 10119-0165, by
Phone: (800) 320-5081, by E-mail: pediatrixcase@milbergNY.com,
or visit the firm's Web site: http://www.milberg.com
POLYMEDICA CORPORATION: Bernard M. Gross Launches Lawsuit in MA
---------------------------------------------------------------
The Law Offices Bernard M. Gross, P.C. initiated a securities
class action in the United States District Court for the
District of Massachusetts, numbered 03 cv11270, on behalf of
purchasers of PolyMedica Corporation (Nasdaq:PLMD) securities
during the period between July 23, 2001 and June 30, 2003.
The action, names as defendants:
1) Steven L. Lee -- Chief Executive Officer from June, 1996
to August 4, 2002, and Chairman of the Board of
Directors from June, 1996 to December 31, 2002;
2) Samuel L. Shanaman -- interim Chief Executive Officer
and Lead Director,
3) Arthur A. Siciliano -- President,
4) John K. P. Stone -- Senior Vice President and General
Counsel,
5) Stephen C. Farrell - Chief Financial Officer and Senior
Vice President,
6) Eric Walters -- Executive Vice President, Investor
Communication and Medicare-Compliance,
7) Warren K. Trowbridge -- President of PolyMedica's
subsidiary, Liberty Medical Supply, Inc. and PolyMedica.
The Honorable Reginald C. Lindsay is presiding.
The Complaint alleges that throughout the Class Period,
defendants issued statements, press releases, and filed
quarterly and annual reports with the SEC describing the
Company's business operations and financial condition. These
representations were materially false and misleading because
they failed to disclose that throughout the Class Period, the
Company had materially misstated its operating earnings.
Specifically, during the relevant time period, it has been
alleged that PolyMedica overstated earnings by capitalizing
direct response advertising costs related to the acquisition of
new customers rather than expensing them as incurred.
Consequently, PolyMedica recorded such advertising costs as
assets rather than as expenses. By accounting for these expenses
as assets, PolyMedica could spread the cost over a two to four
year period rather than accounting for the expense in the
quarter in which they were incurred.
This allowed PolyMedica to understate operating expenses,
overstate assets, and create a false impression of operating
efficiencies with the overall effect being that the Company
misled investors concerning the Company's growth and earnings.
This contrivance violates Generally Accepted Accounting
Principles and the SEC has closely scrutinized this practice.
On June 30, 2003, after the stock market closed, PolyMedica
issued a press release announcing that as a result of
discussions with the SEC regarding the expensing of the
Company's direct response advertising costs, PolyMedica may be
forced to restate results for the fiscal years 2002 and 2003.
The Company said the restatement would reduce its fiscal 2002
earnings to $1.76 from $2.38 per share, a reduction of 26%, its
fiscal 2003 to $2.61 from $3.21, a reduction of 19%, and fiscal
2004 first quarter earnings expectations to $.66-.72 from $.84-
.90. On this news, shares of PolyMedica, which had closed at
$45.86 on June 30, 2003, opened for trading on July 1, 2003, at
$38.56, down $7.30, or 15.9%. PolyMedica shares closed later
that day at $37.39 per share for a loss of $8.47 per share, or
18.5%.
For more details, contact Susan R. Gross, Esq. or Deborah R.
Gross, Esq. by Mail: 1515 Locust Street, Suite 200,
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 Web site:
http://www.bernardmgross.com
POLYMEDICA CORPORATION: Marc S. Henzel Files Lawsuit in MA
----------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the District of
Massachusetts, on behalf of all persons who purchased or
otherwise acquired the securities of PolyMedica Corporation
(Nasdaq:PLMD) between July 23, 2001 and June 30, 2003,
inclusive.
The Complaint alleges that throughout the Class Period, it has
been reported that PolyMedica overstated earnings by
capitalizing direct response advertising costs related to the
acquisition of new customers rather than expensing them as
incurred.
Consequently, PolyMedica recorded such advertising costs as
assets rather than as expenses. By accounting for these expenses
as assets, PolyMedica could spread the cost over a two to four
year period rather than accounting for the expense in the
quarter in which they were incurred. This allowed PolyMedica to
understate operating expenses, overstate assets, and create a
false impression of operating efficiencies with the overall
effect being that the Company misled investors concerning the
Company's growth and earnings. This contrivance violates
Generally Accepted Accounting Principles and the SEC has closely
scrutinized this practice.
On June 30, 2003, after the stock market closed, PolyMedica
issued a press release announcing that as a result of
discussions with the SEC regarding the expensing of the
Company's direct response advertising costs, PolyMedica may be
forced to restate results for the fiscal years 2002 and 2003.
The Company said the restatement would reduce its fiscal 2002
earnings to $1.76 from $2.38 per share, a reduction of 26%, its
fiscal 2003 to $2.61 from $3.21, a reduction of 19%, and fiscal
2004 first quarter earnings expectations to $.66- .72 from $.84-
.90. On this news, shares of PolyMedica, which had closed at
$45.86 on June 30, 2003, opened for trading on July 1, 2003, at
$38.56, down $7.30, or 15.9%. PolyMedica shares closed later
that day at $37.39 per share for a loss of $8.47 per share, or
18.5%.
For queries, contact Marc S. Henzel, Esq. by Mail: 273
Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by Phone:
(888) 643-6735 or (610) 660-8000, by Fax (610) 660-8080, by E-
mail: Mhenzel182@aol.com, or visit the firm's Web site:
http://members.aol.com/mhenzel182.
READ-RITE CORP: Milberg Weiss Commences Fraud Suit in N.D. CA
-------------------------------------------------------------
Milberg Weiss initiated a securities class action in the United
States District Court for the Northern District of California on
behalf of purchasers of Read-Rite Corporation (NASDAQ:RDRT)
(NASDAQ:RDRTQ) publicly traded securities during the period
between October 30, 2001 and June 6, 2003.
The complaint charges certain of Read-Rite's officers and
directors with violations of the Securities Exchange Act of
1934. Read-Rite is an independent supplier of magnetic recording
heads for the hard disk drive ("HDD") and tape drive markets.
The Company designs, manufactures and markets magnetic recording
heads as head gimbal assemblies ("HGAs") and incorporates
multiple HGAs into head stack assemblies. Read-Rite's products
are sold primarily for use in 3.5-inch HDDs for desktop computer
devices, for high-performance enterprise HDDs used in network
and mainframe applications, as well as for consumer electronic
devices such as game stations or personal video recorders.
The complaint alleges that during the Class Period defendants
issued a series of false and misleading statements about the
Company, and as a result Read-Rite's stock traded at inflated
prices during the Class Period, increasing to as high as $39 on
January 9, 2002, before the Company announced it would file for
bankruptcy.
The true facts which were known to each of the defendants, but
concealed from the investing public during the Class Period,
were as follows:
(a) The Company's 40 GB/platter inventory was overstated by
$16.7 million;
(b) The Company's Philippine real estate holdings were
overstated by approximately $6.8 million;
(c) The Company needed to restructure its operations and
the associated charges would cost the Company in excess
of $20 million and would cause an earnings shortfall in
coming quarters;
(d) The Company's Q2 FY03 loss was grossly understated; (e)
The Company was experiencing massive technical problems
associated with its 40GB/per platter programs.
Moreover, the Company was experiencing these problems
well before January 2002 and beyond April 2002 when
defendants claimed such problems were fixed; and
(f) The Company was underfunded and could not complete the
production of its 80GB programs.
For more information, contact William Lerach or Darren Robbins
of by Phone: 800/449-4900 or by E-mail: wsl@milberg.com.
SINGING MACHINE: Charles Piven Files Securities Suit in S.D. FL
---------------------------------------------------------------
The Law Offices Of Charles J. Piven, P.A. initiated a securities
class action in the United States District Court for the
Southern District of Florida, West Palm Beach Division, on
behalf of shareholders who purchased, converted, exchanged or
otherwise acquired the common stock of The Singing Machine
Company, Inc. (AMEX:SMD) between August 9, 2001 and June 27,
2003, inclusive.
The case was filed against The Singing Machine Company, Inc.,
certain of its officers and directors, and the Company's
auditors.
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 E-mail: hoffman@pivenlaw.com, or
by Phone: 410/986-0036.
SINGING MACHINE: Alfred Yates Lodges Securities Suit in S.D. FL
---------------------------------------------------------------
The Law Office of Alfred G. Yates Jr, P.C. initiated a
securities class action in the United States District Court for
the Southern District of Florida on behalf of purchasers of the
securities of The Singing Machine Company, Inc. (AMEX:SMD)
between August 9, 2001 and June 27, 2003, inclusive.
Honorable William J. Zloch is presiding over the civil action,
numbered 03-80596. 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.
The Complaint 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 more details, contact the firm by Phone: 1-800-391-5164 or
412-391-5164 or by E-mail: yateslaw@aol.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.
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
*********
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Class Action Reporter is a daily newsletter, co-published by
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Fatima Antonio and Lyndsey Resnick, Editors.
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