/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/030731.mbx C L A S S A C T I O N R E P O R T E R Thursday, July 31, 2003, Vol. 5, No. 150 Headlines APARTHEID LITIGATION: Minister Asks For Dismissal of NY Lawsuits ATLANTA FALCONS: Former Exec Launches Sexual Harassment Charges BAXTER INTERNATIONAL: IL Court Dismisses Securities Fraud Suit BRIGHTPOINT INC.: IN Court Approves Securities Suit Settlement BURGERS' OZARK: Recalls 6.5Tlbs Bacon For Undeclared Ingredient CALIFORNIA MICRO: SEC Says Two Auditors Neglected Watchdog Role HALLIBURTON CO.: Asks For Dismissal of Securities Fraud Lawsuit HUMANA HEALTH: Faces Several Antitrust Lawsuits in OH, KY Courts HUMANA INC.: Enters Settlement For PCA Consolidated Stock Suit HUMANA INC.: Working To Resolve Consumer ERISA, RICO Suits in FL ILLINOIS: Hospitals Accused With Fraud Over Liver Transplants INTEL CORPORATION: CA Court Dismisses Securities Fraud Lawsuit JEHOVAH'S WITNESSES: Faces Four CA Suits Alleging Sexual Abuse LAND O'LAKES: Recalls 1-lb Salted Stick Butter For Injury Hazard LOUISIANA: Plaintiffs Seek Lights Suit Remand to Federal Court MCI/WORLDCOM: AT&T Asserts Fraud In Local Telephone Access Fees OBESITY LITIGATION: Fat Suit Crusade Invades Ice Cream Parlors TOBACCO LITIGATION: Lorillard Hails Verdict in LA Smoker Lawsuit TOBACCO LITIGATION: Center Says LA Verdict a Victory For Smokers TRILLIUM BANQUET: No Way To Determine Cause of E. Coli Outbreak TURNSTONE SYSTEMS: CA Court Approves Securities Suit Settlement New Securities Fraud Cases ADMINISTAFF INC.: Ademi & O'Reilly Lodges Securities Suit in TX AVATAR HOLDINGS: Abbey Gardy Launches Securities Fraud Lawsuit CENTRAL PARKING: Marc Henzel Launches Securities Suit in M.D. TN COSI INC.: Marc Henzel Lodges Securities Fraud Suit in S.D. NY DIVINE INC.: Marc Henzel Commences Securities Fraud Suit in IL DIVINE INC.: Kirby McInerney Lodges Securities Suit in N.D. IL LABORATORY CORPORATION: Robbins Umeda Lodges Stock Lawsuit in CA ********* APARTHEID LITIGATION: Minister Asks For Dismissal of NY Lawsuits ---------------------------------------------------------------- South African Minister Penuell Maduna officially asked United States District Court Judge John E. Sprizzo to dismiss two class actions seeking reparations for apartheid victims, Business Day reports. The strongly-worded letter to Judge Sprizzo reiterated the South African government's opposition to the suits, which charge a number of corporations that did business in South Africa before 1994, with aiding and abetting the South African apartheid regime. The letter states that the litigation would hurt the country's economy and the very people it was meant to help by increasing unemployment and crime. "If this litigation proceeds, far from promoting economic growth and employment, and thus advantaging the previously disadvantaged, the litigation, by deterring foreign direct investment, and undermining economic stability will do exactly the opposite of what it ostensibly sets out to do," Mr. Maduna stated, according to Business Day. "I understand that under United States law, courts may abstain from adjudicating cases in deference to the sovereign rights of foreign countries to legislate, adjudicate and otherwise resolve domestic issues without outside interference, particularly where the relevant government has expressed opposition to the actions proceeding in the United States and where adjudication would interfere with the foreign sovereign's efforts to address in which it has the predominant interest. The government (of South Africa) submits that its interest in addressing its apartheid past presents just such a situation," the letter continued. Mr. Maduna told the American judge that government's policy was to "promote reconciliation with and business investment by all firms," South African and foreign, "and we regard these lawsuits as inconsistent with that goal." "The remedies demanded in the current litigation in the United States --both the specific requests (such as for the creation of a historical commission and the institution of affirmative action programmes) and the demand for billions of dollars in damages to be distributed by the US courts -- are inconsistent with South Africa's approach to achieving its long term goals," Mr. Maduna argued, Business Day states. ATLANTA FALCONS: Former Exec Launches Sexual Harassment Charges --------------------------------------------------------------- Atlanta Falcons team owner Arthur Blank faces a federal lawsuit, charging him with condoning a work climate where female employees were treated as "sex objects," the Associated Press reports. Former Atlanta Falcons vice president of human resources Carol Faubert, 53, filed the suit, charging the team fired her after she spoke out against sexual harassment of women staffers. She claimed that Mr. Blank dismissed her because she objected to his refusal to hire women with young children and his decision to prohibit certain employees from earning overtime. "Her dismissal had nothing to do with her performance," Larry Pankey, one of Ms. Faubert's lawyers, told AP. In a statement, Susan Bass, the Falcons' vice president for community affairs, denied the suit, saying, "This lawsuit was filed by a disgruntled former employee whose objective is obvious: to threaten public embarrassment as a means of extracting unwarranted personal gain." Mr. Blank, 60, who co-founded The Home Depot, purchased the Falcons in February 2002. Ms. Faubert, who joined the Falcons in April 2002, was fired nearly a year later in February 2003. BAXTER INTERNATIONAL: IL Court Dismisses Securities Fraud Suit -------------------------------------------------------------- Judge Blanche M. Manning of the United States District Court for the Northern District of Illinois dismissed, in its entirety, a consolidated securities class action complaint filed against Baxter International, Inc. and various officers of the Company. Several plaintiffs had sued Baxter in August 2002, alleging violations of the federal securities laws in connection with Baxter's disclosures, prior to July 18, 2002, of certain estimates regarding its performance in full-year 2002. The plaintiffs filed a consolidated complaint in December 2002, and Baxter and the individual defendants then filed a motion to dismiss the complaint. On July 17, 2003, Judge Manning granted Baxter's motion and dismissed all claims against Baxter and its officers in their entirety. The court ruled in its July 17 opinion that Baxter's disclosures were accompanied by substantive and sufficiently tailored cautionary language. At a hearing before Judge Manning earlier today, plaintiffs indicated that they intend to appeal the decision. BRIGHTPOINT INC.: IN Court Approves Securities Suit Settlement -------------------------------------------------------------- The United States District Court for the Southern District of Indiana approved the settlement proposed by Brightpoint, Inc. for the securities class action filed against it, several of its executive officers and directors and the Company's current independent auditors. The action is asserted on behalf of all purchasers of the Company's publicly traded securities between January 29, 1999 and January 31, 2002. On April 29, 2003, the parties to the litigation entered into a stipulation of settlement. The settlement provides for the Company's insurer, under the Company's directors and officers liability policy, to pay $5,050,000. These funds will be used to make distributions to members of the class who timely file a proof of claim, and to pay plaintiff's attorney's fees and expenses. On May 1, 2003, the Court issued an order preliminarily approving the settlement and providing for notice of the settlement to the class. On July 18, 2003, the court issued an order and judgment approving the settlement and dismissing the action. BURGERS' OZARK: Recalls 6.5T lbs Bacon For Undeclared Ingredient ---------------------------------------------------------------- Burgers' Ozark Country Cured, a California, Mo., firm, is voluntarily recalling approximately 6,500 pounds of bacon products that contain an undeclared ingredient (sodium nitrite), the US Department of Agriculture's Food Safety and Inspection Service announced. The products being recalled are approximately 1 lb. packages of "Burgers' Smokehouse Old Fashioned Bacon Seasoning Pieces" and "Burgers' Smokehouse Old Fashioned Bacon End Slices." Each package bears the establishment code "EST. 1161" inside the USDA seal of inspection. The products contain sodium nitrite, but the product label does not list sodium nitrite as an ingredient. The company discovered the problem. The "Old Fashioned Bacon Seasoning Pieces" were distributed to retail stores in Missouri, Arkansas, and Kansas. The "Old Fashioned Bacon End Slices" were distributed nationally by mail order. For more details, contact Steven Burger, company president by Phone: (573) 796-3134. CALIFORNIA MICRO: SEC Says Two Auditors Neglected Watchdog Role --------------------------------------------------------------- The United States Securities Exchange Commission (SEC) charged two auditors with failing to fulfill their watchdog duties as an auditing team that certified Silicon Valley chip maker California Micro Devices' financial statements, the Gainesville Sun reports. Michael J. Marrie and Brian L. Berry, who worked at that time for Coopers and Lybrand (now part of PriceWaterhouseCoopers), allegedly failed to detect signs of financial fraud in the Company's statements, the SEC alleged, reversing a 2001 administrative law judge ruling. The company allegedly fabricated a $5 million profit in 1994, to conceal a $15 million loss. This trigerred a scandal that resulted in criminal charges against several former executives. The SEC decision reprimanded Mr. Marrie and Mr. Berry for "a reckless violation of their professional duties" when they were the accountants assigned to audit California Micro Devices. Their conduct represented "an egregious refusal to investigate the doubtful and see the obvious," the SEC said, the Gainesville Sun reports. Michael Perlis, an attorney representing Marrie and Berry, didn't respond to a telephone message late Tuesday, the Gainesville Sun stated. HALLIBURTON CO.: Asks For Dismissal of Securities Fraud Lawsuit --------------------------------------------------------------- Halliburton Co. asked a federal court to dismiss a securities class action filed against it and former chief executive and US Vice President Dick Cheney, newsobserver.com reports. The suit, filed on behalf of the Company's shareholders, alleges that the Company manipulated its financial reports by booking revenue on cost overruns before it was certain of getting paid. Company lawyer Ronald W. Stevens said Judicial Watch, the group spearheading the suit, failed to produce evidence of fraud. Mr. Stevens said Judicial Watch was pushing its lawsuit "to make political hay with respect to Vice President Cheney . the federal courts shouldn't be used for these kinds of unsavory political purposes." Federal Judge Sam A. Lindsay began considering the motion for dismissal. He expressed skepticism about some of Judicial Watch's claims, saying that the group was just assuming that Mr. Cheney knew details about the accounting change. However, he left open the possibility that the group could revise its lawsuit after gathering more evidence of fraud. Larry Klayman, Judicial Watch's chairman and general counsel, denied any political motivation, saying he is a Republican who voted for Cheney and President Bush in 2000, newsobserver.com reports. He said top Halliburton officials and their auditors made the accounting change to prop up sagging financial results. "Why not just be honest with the public? They weren't," he said. A lawyer for Mr. Cheney, Steven M. Farina from the Washington office of Williams & Connolly, attended the hearing but did not speak, newsobserver.com states. He declined to comment after the session. HUMANA HEALTH: Faces Several Antitrust Lawsuits in OH, KY Courts ---------------------------------------------------------------- Humana Health Plan of Ohio, Inc. faces several antitrust suits filed in state courts in Ohio and Kentucky by the Academy of Medicine of Cincinnati, the Butler County Medical Society, the Northern Kentucky Medical Society and several physicians. The suits also names as defendants: (1) Aetna Health, Inc., (2) Anthem Blue Cross Blue Shield, and (3) United Healthcare of Ohio, Inc. The suits allege that the defendants have violated the Ohio and Kentucky antitrust laws by conspiring to fix the reimbursement rates paid to physicians in the Greater Cincinnati and Northern Kentucky region. Each suit seeks class certification, damages and injunctive relief. Plaintiffs cite no evidence that any such conspiracy existed, but base their allegations on assertions that physicians in the Greater Cincinnati region are paid less than physicians in other major cities in Ohio and Kentucky. The state courts in Ohio and Kentucky each have denied motions by the defendants to compel arbitration or alternatively to dismiss. Defendants have filed notices of appeal with respect to the orders denying arbitration. The Ohio court has agreed to stay proceedings pending resolution of the appeal. The Kentucky court granted a similar request with respect to the physician plaintiffs who are subject to arbitration agreements, but denied the requested stay with respect to the association plaintiffs and any physician plaintiffs whose contracts do not contain arbitration provisions. The plaintiffs have filed motions to certify a class in each case. The purported classes allegedly consist of all physicians who have practiced medicine at any time since January 1, 1992, in a four-county region in Southwestern Ohio or a three-county region in Northern Kentucky. HUMANA INC.: Enters Settlement For PCA Consolidated Stock Suit -------------------------------------------------------------- Humana, Inc. entered a settlement for a consolidated class action filed against it in the United States District Court for the Southern District of Florida by former stockholders of Physician Corporation of America (PCA), which the Company acquired in a merger that became effective on September 8,1997 and certain of PCA's former directors and officers. The consolidated complaint alleges that PCA and the individual defendants knowingly or recklessly made false and misleading statements in press releases and public filings with respect to the financial and regulatory difficulties of PCA's workers' compensation business. On July 24, 2002, the court denied the defendants' motion for summary judgment. On May 20, 2003, the court granted the plaintiffs' motion for class certification. On June 4, 2003, the defendants requested the Court of Appeals for the Eleventh Circuit grant permission to appeal the class certification order. Thereafter, the parties reached agreement to settle the case for the amount of $10.2 million. The settlement has been reflected in our financial statements as of June 30, 2003. The settlement agreement is subject to notice to the class and approval by the court. The Company has pursued insurance coverage for this matter from two insurers, each of which has denied coverage. On April 23, 2003, one of the insurers filed a complaint in the United States District Court for the Southern District of Florida seeking, in effect, a declaration of the responsibilities of the two insurers. The Company intends to continue to pursue the insurance proceeds. HUMANA INC.: Working To Resolve Consumer ERISA, RICO Suits in FL ---------------------------------------------------------------- Humana, Inc. is moving to resolve several class actions filed against them in the United States District Court for the Southern District of Florida, that were part of a wave of generally similar actions that target the health care payer industry and particularly target managed care companies. These cases were consolidated. The cases included separate suits against the Company and five other managed care companies that purported to have been brought on behalf of members, which have been referred to as the subscriber track cases, and a single action against the Company and nine other companies that purports to have been brought on behalf of providers, which is referred to as the provider track case. In the subscriber track cases, the plaintiffs sought a recovery under the Racketeer Influenced and Corrupt Organizations Act (RICO) for all persons who were subscribers at any time during the four-year period prior to the filing of the complaints. Plaintiffs also sought to represent a subclass of policyholders who purchased insurance through their employers' health benefit plans governed by ERISA, and who were subscribers at any time during the six-year period prior to the filing of the complaints. The complaints allege, among other things, that the Company intentionally concealed from members certain information concerning the way in which the Company conducts business, including the methods by which the Company pays providers. The plaintiffs did not allege that any of the purported practices resulted in denial of any claim for a particular benefit, but instead, claimed that the Company provided the purported class with health insurance benefits of lesser value than promised. The complaints also allege an industry-wide conspiracy to engage in the various alleged improper practices. On September 26, 2002, the court denied the plaintiffs' request for class certification. On October 9, 2002, the plaintiffs asked the Court to reconsider its ruling on that issue. The Court denied the motion on November 25, 2002. Thereafter, the Company entered into a settlement arrangement with the two named plaintiffs pursuant to which we paid each $8,000. The Court entered an order dismissing the subscriber track cases with prejudice on May 19, 2003. In the provider track case, the plaintiffs assert that the Company and other defendants improperly paid providers' claims and "downcoded" their claims by paying lesser amounts than they submitted. The complaint alleges, among other things, multiple violations under RICO as well as various breaches of contract and violations of regulations governing the timeliness of claim payments. The Company moved to dismiss the provider track complaint on September 8, 2000, and the other defendants filed similar motions thereafter. On March 2, 2001, the court dismissed certain of the plaintiffs' claims pursuant to the defendants' several motions to dismiss. However, the court allowed the plaintiffs to attempt to correct the deficiencies in their complaint with an amended pleading with respect to all of the allegations except a claim under the federal Medicare regulations, which was dismissed with prejudice. The court also left undisturbed the plaintiffs' claims for breach of contract. On March 26, 2001, the plaintiffs filed their amended complaint, which, among other things, added four state or county medical associations as additional plaintiffs. Two of those, the Denton County Medical Society and the Texas Medical Association, purport to bring their actions against the Company, as well as against several other defendant companies. The Medical Association of Georgia and the California Medical Association purport to bring their actions against various other defendant companies. The associations seek injunctive relief only. The defendants filed a motion to dismiss the amended complaint on April 30, 2001. On September 26, 2002, the Court granted the plaintiffs' request to file a second amended complaint, adding additional plaintiffs, including the Florida Medical Association, which purports to bring its action against all defendants. On October 21, 2002, the defendants moved to dismiss the second amended complaint. The court has not yet ruled on that motion. Also on September 26, 2002, the court certified a global class consisting of all medical doctors who provided services to any person insured by any defendant from August 4, 1990, to September 30, 2002. The class includes two subclasses. A national subclass consists of medical doctors who provided services to any person insured by a defendant when the doctor has a claim against that defendant and is not required to arbitrate that claim. A California subclass consists of medical doctors who provided services to any person insured in California by any defendant when the doctor was not bound to arbitrate the claim. On October 10, 2002, the defendants asked the Court of Appeals for the Eleventh Circuit to review the class certification decision. On November 20, 2002, the Court of Appeals agreed to review the class issue. Oral argument has been scheduled before the appellate court on September 11, 2003. The District Court has ruled that discovery can proceed during the pendency of the request to the Eleventh Circuit, and the Eleventh Circuit rejected a request to halt discovery. The Court has set a trial date of June 30, 2004. In the meantime, one of the defendants, Aetna Inc., announced on May 22, 2003, that it has entered into a settlement agreement with the plaintiffs. The agreement has been filed with the Court and is subject to approval by the Court. ILLINOIS: Hospitals Accused With Fraud Over Liver Transplants ------------------------------------------------------------- Three Chicago hospitals face charges that they used fraud to increase the eligibility of patients for organ transplants, the Associated Press reports. Federal officials named the hospitals as: (1) the University of Chicago Hospitals, (2) Northwestern Memorial Hospital and (3) the University of Illinois Medical Center at Chicago The three hospitals allegedly exaggerated the seriousness of the conditions of some patients so they could get liver transplants sooner. Prosecutors stated one case where a patient who was certified as being seven days from death was found in a hospital lobby, dressed in a clown costume for a show supporting a blood drive. "By falsely diagnosing patients and placing them in intensive care to make them appear more sick than they were, these three highly regarded medical centers made patients eligible for liver transplants ahead of others," US Attorney Patrick J. Fitzgerald told the Associated Press. The suit was culled from a 1999 whistleblower suit filed by Dr. Raymond Pollak, a University of Illinois Medical Center surgeon, against the three institutions. The University of Chicago and Northwestern immediately agreed to settle the suit, without admitting to any wrongdoing. Illinois Attorney General Lisa Madigan said in a statement, "that "there is no room for fraud when it comes to deciding which patient receives an organ . No one should play leapfrog with peoples' lives." John Easton, a spokesman for the University of Chicago Hospitals, told AP "contrary to the government's allegations, the hospitals believe that all decisions about patient care were completely justified." Northwestern Memorial Hospital spokeswoman Kelly Sullivan issued a statement saying the hospital agreed with the need to investigate the allegations, AP reports. She added that the institution disagreed with the government's "suggestion that intensive care unit coverage of two critically ill patients, comatose and suffering from liver failure, was unnecessary." INTEL CORPORATION: CA Court Dismisses Securities Fraud Lawsuit -------------------------------------------------------------- The United States District Court in California dismissed a securities class action filed against semiconductor giant Intel Corporation, the Associated Press reports. The suit charges Company executives with making false and misleading statements in order to artificially inflate the Company's stock price. The Company allegedly made positive statements in 2000 that raised the Company's price to an all- time high of more than $75 per share. Judge Jeremy Fogel granted the Company's motion to dismiss, saying plaintiffs failed to show company officials knowingly misled investors about Intel products or revenues in the third quarter of 2000. "We maintained all along that there's no intent on Intel's part to mislead or defraud shareholders," Intel spokesman Chuck Mulloy told the Associated Press. Attorneys representing the lead plaintiff, the Hawaii Reinforcing Iron Workers Pension Trust Fund, did not return calls or e-mail messages seeking comment. JEHOVAH'S WITNESSES: Faces Four CA Suits Alleging Sexual Abuse -------------------------------------------------------------- The Jehovah's Witness congregation faces four California lawsuits accusing its officials of covering up alleged sexual abuse of children by congregation leaders, the Associated Press reports. The cases were filed last week in three northern California counties, following similar suits in Nevada, Minnesota, Texas, New Hampshire, Maryland, Oregon and Washington. Lawyers for the plaintiffs in the California suits are now holding public meetings to look for more victims and witnesses. "It is a widespread problem and nothing's been done about it to protect these children, to protect future children," Bill Brelsford, one of the Sacramento attorneys who filed the suits, told AP. "Once they (church leaders) know about it, they don't do anything to stop it." William H. Bowen was excommunicated from the church after he set up a website and hot line for abuse victims. He estimates that 15 to 17 lawsuits are pending nationwide before the California suits were filed. The Church's general counsel Philip Brumley said the figure is closer to 10. Mr. Brumley reiterated that the church's probe revealed that its elders did nothing wrong when they tried to protect victims. He further stated that the elders complied with sexual abuse reporting laws and adhered to biblical admonitions against accepting accusations by a single witness. "We abhor child abuse," Mr. Brumley told AP. "The assertion or allegation of a cover up, or a nonchalance about child abuse, is just so far from the truth." Mr. Bowen's website has compiled more than 1,000 abuse stories on his Web site, and fielded more than 6,000 complaints since 2001 against the 6 million strong church. "I have literally the last couple months been bombarded with this stuff. These are not liars, they're abuse survivors," Mr. Bowen told AP. "It never stops. New victims are coming in on a weekly basis." Other members have allegedly suffered persecution and excommunication after they went public with their allegations. Last year, church members or elders in Tennessee and Kentucky were banned from the church after they went public with allegations the denomination has protected pedophiles. Suits filed last year by members in Maryland, Oregon and Washington also claim church elders told them they would not be believed if they reported the molestation without corroboration by witnesses. Mr. Brumley told AP the requirement stems from biblical references that no single witness should rise up against any man, but denied the church discourages victims or their parents from going to police. Where molestation allegations are corroborated, the abuser is banned from the church and is never again allowed to hold a position of authority if the excommunication is rescinded, he added. LAND O'LAKES: Recalls 1-lb Salted Stick Butter For Injury Hazard ---------------------------------------------------------------- Land O'Lakes is voluntarily recalling a limited quantity of LAND O LAKESr Salted Stick Butter in one-pound packages. The product may contain small fragments of metal. There have been no reports of injury or illness associated with the consumption of the product covered by this recall. The product was distributed in: Alabama, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Wisconsin and Wyoming. The product was sold in retail grocery stores between June 11, 2003, and July 26, 2003. The affected product has one of the following production codes listed after the date, which is located above the Nutrition Facts on the packaging: (1) (date) KE 107P (2) (date) KE 108P (3) (date) KE 109P This voluntary recall does not include any other butter products, production codes or any other LAND O LAKESr products. For more details, contact the Company by Phone: 1-800-328-4155 to speak to a consumer affairs representative. LOUISIANA: Plaintiffs Seek Lights Suit Remand to Federal Court -------------------------------------------------------------- Plaintiffs seek the remand of a proposed light cigarette class action to Louisiana state court, because the claims against the defendants are viable, LexisOne reports. The suit was filed in the Calacsieu Parish District Court against: (1) Brown & Williamson Tobacco Corporation, (2) Batus Inc., Pelican Cigar Co., (3) Schlesinger Wholesalers & Automotive Cigarette Service Inc. and (4) the Kroger Co. The suit, filed on behalf of all people who purchased B&W Capri Lights, GPC Ultra Lights or other B&W light cigarettes in Louisiana for personal consumption between the first date B&W placed the light cigarettes into the stream of commerce through the present time, alleges the defendants marked B&W light cigarettes as "lights" and said it contained lowered tar and nicotine. These representations appeared in packs of Capri Lights, GPC Lights and other B&W lights brand in Louisiana. B&W later asked the case to be removed to the US District Court for the Western District of Louisiana based on fraudulent joinder, LexisOne reports. B&W also maintained that the amount in controversy exceeds $75,000, exclusive of interests and costs. Additionally, B&W maintained that this case may be removed pursuant to 28 U.S. Code Section 1442(a)(1) because B&W acted in relevant respects under the direction of a federal officer. The plaintiffs moved for the remand of the suit, stating that the Company's fraudulent joinder arguments fail because the redhibition claims asserted against all defendants are viable, credible and substantial. MCI/WORLDCOM: AT&T Asserts Fraud In Local Telephone Access Fees --------------------------------------------------------------- MCI/Worldcom faces charges of improperly diverting calls to Canada to avoid paying local telephone companies their access fees, the Associated Press reports. Telecommunications firm AT&T Corporation made the allegations, stating in a court filing that the Company placed national interests at risk because the calls could be unprotected from eavesdroppers. AT&T made a filing in the US Bankruptcy Court, which is currently considering efforts by MCI parent WorldCom, Inc. to emerge from Chapter 11 bankruptcy. In an effort to clean up its image, WorldCom is planning to adopt the name of MCI's long distance division. AT&T said they had evidence of their charges dating back to July 2001 until early this week. AT&T further alleged the Company carried out a coding process that shifted calls from a local carrier in the Midwest, then to a local carrier in the Canadian province of Manitoba, then to Bell Canada and back to the United States on AT&T lines, the Associated Press reports. Bell Canada has a long-standing agreement to send its US-bound calls to AT&T lines. AT&T asserted tests on its lines in the past two weeks confirmed the activity. MCI's routing allegedly deceived AT&T into believing the calls had originated in Canada - forcing AT&T to pay the high local access fees. Calls from federal agencies such as the State Department, the US Postal Service, the Library of Congress and the US Agency for International Development, as well as a member of Congress were tagged as the ones diverted. MCI did not return a telephone call Monday seeking comment, AP states. However, it said over the weekend that its competitors were trying to throw up roadblocks to its emergence from bankruptcy. Another probe by federal prosecutors is ongoing, over accusations that the Company defrauded other telephone companies of hundreds of millions of dollars, by masking long-distance calls as local calls and diverted others to Canada to avoid paying special-access fees to local carriers across the country. MCI officials have "demonstrated their willingness to play fast- and-loose with our national interests to line their pockets with cost savings from local telephone tariffs they dodged," AT&T said in its filing. OBESITY LITIGATION: Fat Suit Crusade Invades Ice Cream Parlors -------------------------------------------------------------- Another chapter in the battle of the fat lawsuit war soon may be written, as some leaders in this crusade bring their challenge to the ice cream parlors, the Washington Times reports. Ben, Jerry, Haagen-Dazs and other ice-cream makers may be brought to court if they do not properly display the fat content of their ice cream on menus in their stores. John Banzhaf III, a law professor at George Washington University and a leader of the movement, recently sent out letters to six major ice-cream companies, in which Professor Banzhaff warned the ice-cream makers that they will face litigation if they do not put the fat content of their ice-cream product on the menu boards in their stores. The warning letters also were signed by Michael F. Jacobson, executive director for the Center for Science in the Public Interest, a nonprofit health advocacy group in Washington, D.C. The six companies that will receive the warning letter are Baskin-Robbins Inc., Cold Stone Creamery, the Haagen-Dazs Shoppes Inc., TCBY, Ben & Jerry's Homemade Holdings Inc. and Friendly Ice Cream Corporation. Professor Banzhaf, a leader in the legal battle against Big Tobacco, has designed the very cases that became vehicles of successful litigation against the major tobacco companies. Professor Banzhaf has boasted that $246 billion was made from major tobacco litigation and that a similar amount could be made, mostly by settlements, in obesity lawsuits. Not one obesity case has gone to court, but three have been settled out of court for more than $14 million. The first and largest was a $10 million settlement with McDonald's last year. Professor Banzhaf does not hide the fact that suing the ice- cream makers is a good way for trial lawyers to make money. However, he still refers to these lawsuits as "public interest," citing obesity as a major killer. Professor Banzhaf said he does not make any money from the settlements, but passes the word on to other trial lawyers. "I don't ever see a dime," he said. Some Washington-area residents think the new crop of lawsuits targeting the ice-cream industry is leaving out a key ingredient of junk-food consumption--personal responsibility. In fact, the latest step in the self-termed sue-fat movement gave rise to some derisive laughter. Typical of the remarks made are those of Steve Patrick, 40, of Columbia, Md., who recently ate a cup of Cherry Garcia at Ben & Jerry's in Georgetown. "Everyone knows Ben & Jerry's and Haagen Dazs are premium ice creams. You can't be premium without having butterfat and sugar," he said. Mr. Patrick's opinion reflects those who think people should not blame anyone but themselves for their gaining weight. The reader may find additional coverage of the "fat lawsuit war" by the Class Action Reporter in other issues, such as the July 23, 2003 issue, in "* Tobacco Litigation Expert takes on Obesity." TOBACCO LITIGATION: Lorillard Hails Verdict in LA Smoker Lawsuit ---------------------------------------------------------------- The Lorillard Tobacco Company hailed a Louisiana jury's verdict stating that tobacco firms are not responsible for funding a medical monitoring program for present and former smokers in the state. The same jury found the companies liable for funding a smoking cessation program for the class of Louisiana present and former smokers. The verdict was rendered in the class action suit, Gloria Scott. v. The American Tobacco Company, which is being tried in a New Orleans federal district court. Jurors in the case were asked to decide whether tobacco companies are liable to fund medical monitoring and smoking cessation programs for Louisiana's present and former smokers. "We are pleased that the jury rejected the plaintiffs' principal claim for medical monitoring, which is an untested and potentially dangerous medical scheme that no major medical organization recommends," said Ronald S. Milstein, Vice President and General Counsel for Lorillard Tobacco Company, in a statement. "Asking the companies to fund a smoking cessation program when well over half of the plaintiff class no longer even smokes, just doesn't make sense," he continued. "Liability to fund smoking cessation programs should not be tried in class action lawsuits. Research has shown time and time again that willpower is the only smoking cessation aid that always works. We are confident that the appeal courts will remedy this situation." A similar action, in which a West Virginia jury was asked to decide if the tobacco companies should fund a medical monitoring program, ended in a verdict for the defense. The West Virginia jury was not asked to decide if the companies should fund a smoking cessation program. TOBACCO LITIGATION: Center Says LA Verdict a Victory For Smokers ---------------------------------------------------------------- The Center For Tobacco Cessation labeled a Louisiana jury verdict in a medical monitoring lawsuit against tobacco companies a "victory" for smokers. In a statement, the group said that more than one million Louisiana smokers may get the help they need to quit smoking due to a jury verdict July 28 that would compel leading tobacco companies to pay for tobacco cessation programs in the state. "The verdict to compel tobacco cessation programs on the tobacco industry's dime is an exciting development for smokers in Louisiana because it potentially provides unprecedented access to evidence-based programs to help smokers quit. While the jury found the provision of such programs reasonably necessary, the panel refused to force the tobacco industry to pay for medical monitoring for smokers who show no signs of illness," the group asserted. "This verdict is a tremendous opportunity to ensure that smokers in Louisiana have access to proven treatments for quitting that double or even triple their chances at a successful quit attempt," said Linda A. Bailey, J.D., M.H.S., director of the Center for Tobacco Cessation. "There's no discounting it. This is a victory, clear and simple, for smokers in the state." The group believes that the smoking cessation programs will complement the support Louisiana currently provides to state residents who smoke and bolster efforts to improve the public's health. The state offers a toll-free tobacco quit line available to all state residents and provides coverage to state Medicaid beneficiaries for some tobacco dependence medications, including nicotine nasal spray, nicotine inhaler and Zyban. In addition, industry-funded cessation programs would infuse new funding to tobacco control efforts in Louisiana, the statement asserted. Currently, the state invests approximately $8 million in tobacco control programs overall, just one-third of the minimum amount recommended by the Centers for Disease Control and Prevention. Only a portion of that amount funds tobacco cessation efforts. "Smoking is an incredibly addictive habit that requires a combination of treatments to help smokers quit for good," Ms. Bailey said. "To deliver on the promise of the jury's verdict, the industry-funded cessation program should be independent of industry influence possibly coordinated by the state, provide counseling and medications to smokers, and include promotion of tobacco cessation via advertising that reaches smokers, their families, and physicians." The defendants in the case include Philip Morris USA, Incorporated, R.J. Reynolds Tobacco Company, Brown and Williamson Tobacco Corporation, and Lorillard Tobacco Company. The jury determined that over a period of more than 20 years these firms conspired to distort the public's knowledge about smoking and health and violated their duty not to market their products to minors. The verdict marks the end of the first phase of the case. A second phase, with the same jury, will design the smoking- cessation programs. In the third phase, the judge will decide how much the tobacco industry will have to pay for the programs. Dates have not been set for phases two and three. TRILLIUM BANQUET: No Way To Determine Cause of E. Coli Outbreak --------------------------------------------------------------- The Peel Region Health Department said there is no way to determine how food at Mississauga, Canada's Trillium Banquet Hall became contaminated, Haltonsearch.com reports. The department started its probe on food sources and food handling at the banquet hall after forty-one E. C. Drury High School students fell ill after eating food at the banquet hall during their graduation. The department investigated 117 people who reported having symptoms associated with food borne illness after eating at the hall between June 25 to 29. Out of the 117, 85 attended the EC Drury graduation. 46 tested positive for E. coli 0157:H7, the health department reported. The department tested samples from food, water, the kitchen environment and food handlers through the Central Public Health Laboratory, but despite a thorough investigation, they couldn't determine how the contamination started. "Although we haven't pinpointed how the bacteria came to contaminate the food served at the banquet hall, the fact that people who ate at different events at the same banquet hall became ill with the same strain of E. coli confirms that food served at the hall was the source of infection," said Dr. David McKeown, Peel Region's medical officer of health, in a press release, haltonsearch.com reports. Dr. McKeown said measures have been implemented at the banquet hall to reduce the risk of a recurrence. Meanwhile, the planned class action against the banquet Hall is set to commence as soon as the claim is issued. A public meeting with two lawyers from Sutts Strosberg, the 21-lawyer firm that's handling the lawsuit, will be held this week with students who contracted E. coli, and their parents. The banquet hall has been given the go-ahead to resume food preparation on the site, but Peel health inspectors will have an increased presence at the facility for upcoming events. Dr. Bob Nosal, Halton's Medical Officer of Health, told Haltonsearch.com it's fortunate there haven't been any cases of hemolytic uremic syndrome -- which can cause severe damage to the kidneys and other organs -- arising from the E. coli infections. TURNSTONE SYSTEMS: CA Court Approves Securities Suit Settlement --------------------------------------------------------------- The United States District Court for the Northern District of California preliminarily approved a settlement of a purported class action that was brought against Turnstone Systems, Inc., certain of its officers and directors and its underwriters on behalf of persons who purchased common stock issued pursuant to the company's secondary stock offering in September 2000. The suit was settled for $7.0 million, of which insurance for the company's directors and officers will pay approximately $6.1 million and the company will contribute approximately $0.9 million in cash. While the company continues to deny any wrongdoing or violation of securities laws, it believes the settlement is in the best interest of the company and its stockholders to avoid the distraction and expense of continued litigation. The settlement is conditioned upon, among other things, notice to the company's stockholders of the settlement and final approval by the court. New Securities Fraud Cases ADMINISTAFF INC.: Ademi & O'Reilly Lodges Securities Suit in TX --------------------------------------------------------------- Ademi & O'Reilly, LLP initiated a securities class action in the United States District Court for the Southern District of Texas, Houston Division, on behalf of purchasers of Administaff, Inc. (NYSE:ASF) publicly traded securities during the period between April 3, 2001 to July 31, 2002, inclusive. The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between April 3, 2001 and July 31, 2002, thereby artificially inflating the price of Administaff securities. The complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (1) that Administaff had inadequate and deficient pricing and billing systems and was incorrectly calibrating pricing for clients that experienced declines in average payroll cost per worksite employee; (2) that Administaff was incorrectly matching the price and cost for health insurance on new and renewing client contracts; and (3) that, in violation of Generally Accepted Accounting Practices and in order to retain its coveted place on the Fortune 500 listing, Administaff was improperly recognizing revenue by failing to net Administaff's worksite employee payroll costs against revenues. On August 1, 2002, before the open of trading, Administaff shocked the investing public when it released its financial and operational results for the second quarter ended June 30, 2002, reporting ``a net loss and diluted net loss per share of $3.2 million and $0.11'' as compared to Thomson Financial/First Call estimates of $0.04 earnings per share. Market reaction was swift and negative, with Administaff stock falling from a close of $7.50 on July 31, 2002 to a close of $4.20 on August 1, 2002, or a single-day decline of 44% in heavy trading. For more details, contact Guri Ademi by Phone: (866) 264-3995 by Fax: 1-414-482-8001 or visit the firm's Website: http://www.gademi@ademilaw.com AVATAR HOLDINGS: Abbey Gardy Launches Securities Fraud Lawsuit -------------------------------------------------------------- Abbey Gardy, LLP commenced a securities class action on behalf of all persons or entities who hold 7% convertible subordinated notes due April 1, 2005 sold by Avatar Holdings Inc. (NasdaqNM:AVTR). The Complaint alleges that defendants violated Sections 12(a)(2) and 15 of the Securities Act of 1933. The complaint names as defendants the Company and: (1) Gerald D. Kelfer, Avatar's Chief Financial Officer, President and Vice Chairman, and (2) Juanita I. Kerrigan, Avatar's Vice President and Secretary Avatar is a corporation primarily engaged in real estate operations in Florida and Arizona. The case is brought in connection with Avatar's July 1, 2003 announcement of its redemption of $60 million of the $94,429 million in aggregate principal amount of Notes outstanding. The Notes were convertible, at any time prior to maturity, to shares of Avatar common stock at a conversion price of $31.80 per share or Avatar could redeem the Notes at its option at specified prices. Because Avatar is a real estate company, the true value of its real estate holdings is critical to Noteholders in making a decision whether to have their Notes redeemed for cash, or whether to exchange those Notes for shares of Avatar's common stock. The Company's public documents state that its real estate is valued at the lower of cost or market value. Plaintiff alleges that Noteholders are unable to make an informed decision whether to convert their Notes to Avatar common stock or allow them to be redeemed because defendants failed to disclose the basis on which the Company's land inventories are valued. The complaint seeks disclosure of this material information or damages that flow from the failure to disclose it. For more details, contact Nancy Kaboolian by Phone: (212) 889-3700 or 800-889-3701 or by E-mail: nkaboolian@abbeygardy.com CENTRAL PARKING: Marc Henzel Launches Securities Suit in M.D. TN ---------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Middle District of Tennessee, Nashville Division, on behalf of all purchasers of the common stock of Central Parking Corporation (NYSE: CPC) from November 4, 2002 through February 13, 2003, inclusive. The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between November 4, 2002 and February 13, 2003, thereby artificially inflating the price of Central Parking common stock. The complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (1) that the Company's internal controls were inadequate to record and document the Company's financial results; (2) that the Company was materially understating its bad debt reserve, thereby overstating its earnings; (3) that the Company was materially understating its accounts payable, thereby overstating its financial condition; and (4) as a result of the foregoing, the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles and, therefore, were materially false and misleading. On February 14, 2003, Central Parking shocked the market when it announced that it would be taking a charge to increase its bad debt reserve and that it would be taking a charge to increase its accounts payables. In response to this announcement, the price of Central Parking common stock dropped from $15.82 on February 13, 2003 to a close of $12.31 on February 14, 2003, or a single-day decline of more than 22%, on more than seven times normal trading volume. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's Website: http://members.aol.com/mhenzel182 COSI INC.: Marc Henzel Lodges Securities Fraud Suit in S.D. NY -------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Cosi, Inc. (NASDAQ: COSI) between November 22, 2002 to February 4, 2003 inclusive and who were damaged thereby. The action, is pending against the Company and: (1) Andrew M. Stenzler (CEO and Chairman), (2) Jonathan M. Wainwright, Jr. (President) and (3) Kenneth S. Betuker (CFO) The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between November 22, 2002 to February 4, 2003. As alleged in the complaint, the Registration Statement and Prospectus for the Company's November 22, 2002 IPO contained several sections which discussed the Company's plans for growth and described how the proceeds raised from the IPO would enable the Company to implement these plans. The complaint further alleges Mr. Stenzler made similar representations in an interview broadcast on CNNfn. These statements were materially false and misleading, according to the complaint, because: (i) they failed to disclose that the funds raised by the IPO would be insufficient to implement the Company's expansion plan, contrary to defendants' Class Period representations; and (ii) at the time of the IPO, defendants should have known that the costs of expansion would be greater than the cash available to the Company (which included working capital and proceeds from the IPO), making it highly improbable that the Company would be able to successfully continue to open numerous new stores at such a rapid pace. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com DIVINE INC.: Marc Henzel Commences Securities Fraud Suit in IL -------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Northern District of Illinois, Eastern Division on behalf of purchasers of divine, inc. (OTC Pink Sheets: DVINQ) formerly publicly traded securities during the period between November 12, 2001 to February 18, 2003, inclusive. The complaint alleges that Andrew J. Filipowski (Chief Executive Officer and Chairman of the Board of Directors) and Michael P. Cullinane (Chief Financial Officer and Executive Vice President) 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 12, 2001, and February 18, 2003, thereby artificially inflating the price of Divine securities. Throughout the class period, as alleged in the Complaint, defendants failed to disclose and misrepresented these material adverse facts: (1) Divine was engaged in a scheme of inflating its revenues by approximately $65 million by instructing employees of its wholly-owned subsidiary, RoweCom, to offer discounts to library customers that paid cash in advance -- months before payments were due to publishers -- even though Divine had no plan to pay its obligations to publishers, (2) Divine was fraudulently diverting nearly $74 million from RoweCom's operations, (3) Divine lacked adequate financial and internal controls with respect to its RoweCom operations, and (4) as a result of the foregoing, Divine lacked a reasonable basis to project profitability by year-end or an ability to maintain its operations without bankruptcy protections. The Class Period ends on February 18, 2003. On that date, Divine announced that "despite efforts over the past several months to minimize operating expenses and various liabilities, its board of directors has determined that it must seek alternatives to protect the value and viability of its operations. As a result, Divine has engaged Broadview International LLC as advisors to assist in exploring strategic options, which may include asset divestitures, comparable transactions, and/or the filing of a voluntary petition under Chapter 11 of the United States Bankruptcy Code." In response to this announcement, the price of Divine stock declined precipitously. During the Class Period, Divine completed two acquisitions, among numerous others -- acquiring Viant Corporation and Delano Technology Corporation -- using its common stock as currency. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's Website: http://members.aol.com/mhenzel182 DIVINE INC.: Kirby McInerney Lodges Securities Suit in N.D. IL -------------------------------------------------------------- Kirby McInerney & Squire, LLP initiated a securities class action in the United States District Court for the Northern District of Illinois, Eastern Division on behalf of all purchasers of Divine, Inc. (Other OTC:DVINQ.PK) common stock during the period from November 12, 2001 through February 18, 2003, inclusive. The action charges Divine and certain of its senior officers with violations of Sections 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The alleged violations stem from the dissemination of false and misleading statements, which had the effect -- during the class period -- of artificially inflating the price of Divine's shares. Throughout the class period, defendants issued a series of material misrepresentations to the market, which served to artificially inflate the price of Divine securities. As alleged in the complaint, defendants failed to disclose and misrepresented these material adverse facts: (1) Divine was engaged in a scheme of inflating its revenues by approximately $65 million by instructing employees of its wholly-owned subsidiary, RoweCom, to offer discounts to library customers that paid cash in advance - months before payments were due to publishers - even though Divine had no plan to pay its obligations to publishers; (2) Divine was fraudulently diverting nearly $74 million from RoweCom's operations; (3) Divine lacked adequate financial and internal controls with respect to its RoweCom operations; and (4) as a result of the foregoing, Divine lacked a reasonable basis to project profitability by year-end or an ability to maintain its operations without bankruptcy protections. Additionally, as alleged in the complaint, Divine filed a Registration Statement on Form S-4 in connection with its acquisition of Viant Corporation, on June 19, 2002. That Registration Statement was false and misleading as it incorporated by reference Divine's materially false and misleading financial results, as previously reported on Forms 10-K and 10-Q with the SEC. During the class period, Divine completed its acquisition of Viant Corporation, among other acquisitions, using its artificially inflated common stock as currency. On February 18, 2003, the close of the Class Period, Divine announced that "despite efforts over the past several months to minimize operating expenses and various liabilities, its board of directors has determined that it must seek alternatives to protect the value and viability of its operations. As a result, Divine has engaged Broadview International LLC as advisors to assist in exploring strategic options, which may include asset divestitures, comparable transactions, and/or the filing of a voluntary petition under Chapter 11 of the United States Bankruptcy Code." In response to this announcement, the price of Divine stock declined precipitously. For more details, contact Ira M. Press or Elaine Mui by Phone: (888) 529-4787 or by E-mail: emui@kmslaw.com. LABORATORY CORPORATION: Robbins Umeda Lodges Stock Lawsuit in CA ---------------------------------------------------------------- Robbins Umeda & Fink, LLP initiated a securities class action on behalf of purchasers of the securities of Laboratory Corporation of America Holdings (NYSE:LH) between February 13, 2002 and October 3, 2002, inclusive. The action is pending in the United States District Court, Middle District of North Carolina, against the Company and: (1) Thomas Macmahon (LabCorp's CEO), (2) Richard L. Novak (LabCorp's COO) and (3) Wesley Elingburg (LabCorp's CFO) The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between February 13, 2002 and October 3, 2002. During the class period, the Company issued statements that failed to disclose and/or misrepresented the following adverse facts, among others: (1) LabCorp was experiencing increased competition in its traditionally strongest and core markets, such as the Carolinas; (2) the Company had understaffed certain of its core markets, leading to a lack of key employees, such as phlebotomists and account representatives, causing a material deterioration of service levels and a loss of business to increased competition; (3) the decreased sale volume was caused by material operational deficiencies, rather than by a couple of pending deals that closed late, as the Company had represented; (4) defendants knew that the Company's sales problems would continue in the foreseeable future, contrary to the statements that volume growth would increase; and (5) as a result of the foregoing, the Company's assurance that its historical strong growth would continue lacked any reasonable basis. Throughout the class period, LabCorp insiders, including the individual defendants, sold a total of 316,112 shares of LabCorp stock at artificially inflated prices, collecting proceeds of over $26 million. On October 3, 2002, after the close of regular trading, LabCorp shocked the market by announcing that it expected disappointing 3Q:2002 results due to ``continued slowdown in volume growth in the routine, or core, testing business in certain key regions of the country,'' which it expected would continue at least until the end of 2002. Investors, primed by defendants' Class Period statements to believe that the Company's business was growing faster than ever and had already overcome the brief slowdown in growth during the second quarter, were shocked to learn that the slowdown had continued and was not expected to abate until after the end of the year and that the slowdown had been in the Company's core business. In reaction to the Company's belated disclosure, the price of LabCorp common stock plummeted, falling 34.6% in one day, from a close of $33.18 per share on October 3 to $21.68 per share on October 4, on trading volume of over 21.2 million shares, which is many times the Company's average daily trading volume. For more details, contact Marc M. Umeda by Mail: 1010 Second Ave., Suite 2360, San Diego, CA 92101 by Phone: 800-350-6003 or by E-mail: umeda@ruflaw.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 ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, New Jersey, and Beard Group, Inc., Washington, D.C. Enid Sterling, Aurora Fatima Antonio and Lyndsey Resnick, Editors. Copyright 2003. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e-mail. 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