/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/030806.mbx C L A S S A C T I O N R E P O R T E R Wednesday, August 6, 2003, Vol. 5, No. 154 Headlines ATLANTA FALCONS: Owner Labels Sex Bias Lawsuit As "Unjustified" CALIFORNIA: Gov. Davis Seeks Delay of October 7 Recall Elections CERNER CORPORATION: Shareholders Lodge Stock Lawsuits in W.D. MO COMCAST CORPORATION: Moves For Dismissal of At Home Stock Suits CORONET INDUSTRIES: Erin Brockovich, Firm Probes Health Charges DYNEGY INC.: Two Former Executives To Appear in Houston Court ENERGY CLUB: Recalls Nutty Fruit Mix Due To Undeclared Sulfites EVERLASTING DISTRIBUTORS: Recalls Ricoa For Undeclared Peanuts FIDELITY NATIONAL: Consumers Lodge Antitrust Lawsuit in CA Court FIDELITY NATIONAL: Shareholders File Suit Over FNIS Merger in DE FOG CUTTER: Enters Mediation of Lawsuits Over CCL Receivership FTD INC.: Settles Consolidated Securities Suit For $10.7 Million IBM CORPORATION: IL Court Pension Ruling To Affect Other Firms LEHMAN BROTHERS: Not Liable To Return Monies First Alliance Paid MANOR DELICATESSEN: Recalls Potato Salad For Possible Listeria MEDCO HEALTH: NJ Court Approves $42.5M Consumer Suit Settlement MODELING AGENCIES: Justice Dept Probes Model Antitrust Charges MOTOROLA INC.: Shareholders Launch Lawsuit Over Telsim Financing MOTOROLA INC.: Pension Plan Members Launch ERISA Suit in N.D. IL NETZERO INC.: Enters Settlement For Securities Fraud Suits in NY PRICEWATERHOUSECOOPERS: Settles Bonuses Suit For $1.8 Million PUBLIC SERVICE: Asks NJ Court To Dismiss Lawsuit Over Gas Meters QUINTEK TECHNOLOGIES: SEC Files Securities Complaint in C.D. CA TALX CORPORATION: Asks MO Court to Dismiss Securities Fraud Suit TOBACCO LITIGATION: Louisiana Trial To Resume When Jury Returns TRAVACALM: Australians To Launch Lawsuit Over Adverse Reactions UNITED ONLINE: Reaches Settlement in CA Consumer Fraud Lawsuit UNITED ONLINE: Discovery Proceeds in Consumer Fraud Suit in NY Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals * Online Teleconferences New Securities Fraud Cases CATALINA MARKETING: Schiffrin & Barroway Files FL Stock Lawsuit CATALINA MARKETING: Cauley Geller Lodges Securities Suit in FL IMPATH INC.: Milberg Weiss Lodges Securities Lawsuit in S. D. NY IMPATH INC.: Brodsky & Smith Launches Securities Suit in S.D. NY IMPATH INC.: Abbey Gardy Lodges Securities Fraud Suit in S.D. NY IMPATH INC.: Cohen Milstein Commences Securities Suit in S.D. NY QUEST SOFTWARE: Lasky & Rifkind Files Securities Suit in C.D. CA ********* ATLANTA FALCONS: Owner Labels Sex Bias Lawsuit As "Unjustified" --------------------------------------------------------------- Atlanta Falcons owner Arthur Blank labeled as "totally unjustified" the allegations of sexual harassment in a suit filed by the team's former vice president Carol Faubert in Georgia federal court, the Associated Press reports. Ms. Faubert, 53, alleges that she was fired in February for speaking out against the treatment of women in the organization. She claimed Mr. Blank condoned a work climate in which female employees were treated as "sex objects," and fired her for objecting to Mr. Blank's refusal to hire women with young children and his decision to prohibit certain employees from earning overtime. "It's sad that we have to take time to deal with this," Mr. Blank told AP. "But to me that's a lot less painful than having these statements being made about us and our organization and about me and others that are complete distortions and fabrications." Mr. Blank further stated that Ms. Faubert promised to drop the suit if she were paid $5 million. "My answer is that, as a matter of principle, I'm not going to do something like that . We have nothing to hide, and we'll be happy to talk about all the truths and just deal with it." Mr. Blank was the co-founder and former CEO of Home Depot. In 1994, seven California women filed against the world's largest home improvement retailer for gender discrimination, saying Home Depot denied women promotions because of their gender. The two sides reached a settlement in which Home Depot paid $104.5 million. Mr. Blank said there was no correlation between that suit and this current one. CALIFORNIA: Gov. Davis Seeks Delay of October 7 Recall Elections ---------------------------------------------------------------- Embattled California Governor Gray Davis is attempting to delay the October 7 recall ballot, saying an October vote on whether to unseat him would be unfair to millions of California voters, Reuters reports. A lawsuit filed in California Supreme Court alleges that there were older voting machines and fewer polling places to operate for the special ballot in October, which would disenfranchise millions of California voters. The suit also states that a special election would be costly, and seeks the postponement of the recall to March, when the presidential primary takes place. Gov. Davis could benefit from a March election date, because a presidential primary vote would attract more Democrats who would be more likely to keep him in office. However, if the court refuses the appeal, it would wreck havoc on Gov. Davis' popularity, which suffered highly after the state encountered fiscal woes. "The courts have many, many times intervened in an election situation and delayed an election when it was apparent that an election wasn't going to be held fairly," lawyer Michael Kahn, who filed the lawsuit for Davis told Reuters. "It's the latest sign of desperation of the Davis camp," Chris Wysocki, spokesman for Rescue California, a Republican-backed group that spearheaded the recall drive told Reuters. "They're doing everything they can to delay this process." Worried Democrats say that if the recall succeeds, they might consider fielding an alternative candidate before the Saturday filing deadline. US Senator Barbara Boxer told Reuters, "My view is you can't shut the door on that . I don't think you should ever shut the door on another strategy. We have a very deep bench." "I have great confidence that the people of this state are fair- minded and will make a good judgment as to whether I have 63 days left to serve as governor or three and a half years," Gov. Davis told Reuters. Four recall-related cases are pending before the state Supreme Court. So far, no case has slowed the recall process. CERNER CORPORATION: Shareholders Lodge Stock Lawsuits in W.D. MO ---------------------------------------------------------------- Cerner Corporation faces several securities class actions filed in the United States District Court, Western District of Missouri after a decline in Company's stock price following the Company's announcement on April3, 2003 that it would not meet revenue and earnings estimates for the first quarter of 2003. In general, the lawsuits allege that, during various class periods commencing as early as July 17, 2002 and ending April 2, 2003, the Company and individual named defendants misrepresented or failed to disclose certain factors, which they allege impacted the Company's business and anticipated revenue and earnings, all allegedly in violation of Sections10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Given that the lawsuits have only recently been filed, the Company cannot currently predict the outcome of the litigation or the amount of any potential loss if its defense is unsuccessful. However, it believes that all the claims in the lawsuits are without merit. COMCAST CORPORATION: Moves For Dismissal of At Home Stock Suits --------------------------------------------------------------- Comcast Corporation moved for the dismissal of several class actions filed against it as a result of alleged conduct of the Company with respect to its investment in and distribution relationship with At Home Corporation. At Home was a provider of high-speed Internet access and content services which filed for bankruptcy protection in September 2001. Several class actions were filed against the Company, Brian L. Roberts (the Company's President and Chief Executive Officer and a director), AT&T (the former controlling shareholder of At Home and also a former distributor of the At Home service) and other corporate and individual defendants in the Superior Court of San Mateo County, California. The suits allege breaches of fiduciary duty on the part of the Company and the other defendants in connection with transactions agreed to in March 2000 among At Home, the Company, AT&T and Cox Communications, Inc. Cox is also an investor in At Home and a former distributor of the At Home service Several class actions were filed against Comcast Cable Communications, Inc., AT&T and others in the United States District Court for the Southern District of New York, alleging securities law violations and common law fraud in connection with disclosures made by At Home in 2001. Another lawsuit was brought in the United States District Court for the District of Delaware in the name of At Home by certain At Home bondholders against the Company, Brian L. Roberts, Cox and others, alleging breaches of fiduciary duty relating to the March 2000 transactions and seeking recovery of alleged short- swing profits of at least $600 million pursuant to Section 16(b) of the Securities Exchange Act of 1934 purported to have arisen in connection with certain transactions relating to At Home stock effected pursuant to the March 2000 agreements. The actions in San Mateo County, California have been stayed by the United States Bankruptcy Court for the Northern District of California, the court in which At Home filed for bankruptcy, as violating the automatic bankruptcy stay. In the Southern District of New York actions, the court ordered the actions consolidated into a single action. CORONET INDUSTRIES: Erin Brockovich, Firm Probes Health Charges --------------------------------------------------------------- Erin Bockovich-Ellis, the feisty former file clerk whose investigation of a California polluter rocketed her to national fame, is now investigating Coronet Industries, and the health complaints of residents living near it, the Tampa Tribune reports. Ms. Brockovich-Ellis, who has been portrayed on the big screen by Julia Roberts and lauded by environmentalists across the country, and lawyer Ed Masry have expressed a "serious interest" in the case, after hearing news reports about health complaints and listening to a concerned mother or a child with disabilities. Shannon Franco contacted Mr. Masry's lawfirm, Masry and Vititoe, about a rare developmental delay experienced by her 2 1/2-year- old son, Nicholas, who has difficulty communicating. He had been in and out of the hospital for tests three times, but doctors have not been able to pin down a diagnosis. Ms. Franco, a biologist, told the Tampa Tribune she "knows how things that are in the air and water can affect health." Mr. Masry told her to send him The Tampa Tribune's articles about Coronet, and to retrieve some documents from the local regulatory agencies. The levels of toxins on Coronet's property concerned him, namely "heavy metals, inorganic salts, alpha radiation and mercury," he told the Tribune. Mr. Masry said it was too early to tell how the lawsuits could be pursued, but said it was possible that property damages could be handled on a class-action basis, and health concerns could be handled individually. Health officials have also began testing private wells at homes near Coronet to determine whether there is a link between the plant and residents' health problems. Mr. Masry said the investigation is in its embryonic stages. The firm is due to meet with residents, representatives of states health and environmental agencies and the Hillsborough County Environmental Protection Commission to discuss residents' concerns on August 19 at Marshall Middle School. Coronet Industries is a 100- year-old phosphate processing plant that has been the subject of a federal public health assessment, the target of a local and federal criminal investigation, and is in violation of air and water permits with local regulatory agencies. DYNEGY INC.: Two Former Executives To Appear in Houston Court ------------------------------------------------------------- Two former Dynegy, Inc. executives charged with fraud are set to appear before United States District Judge Sim Lake, to be re- arraigned over charges of financial fraud, the Associated Press reports. Gene Shannon Foster, 44, and Helen Christine Sharkey, 31, are set to appear over charges that they booked debt as cash flow in 2001 in a deal dubbed "Project Alpha" to represent the Company as more financially healthy. A third former Dynegy executive, Jamie Olis, 37, faced the same charges but will not appear in court. Under "Project Alpha," the executives forged a deal to buy natural gas from a partnership, ABG Gas Supply LLC, at a $300 million discount, resell the gas at market prices and record the $300 million as cash flow on Dynegy's books. A June 13 indictment against the trio alleges they promised full repayment to banks backing ABG, so the money was a loan and should have been booked as debt. The indictment said further the executives hid the secret payback agreement from outside auditors and others at Dynegy. The Company also wrongly booked a related $79 million tax benefit, the indictment alleged. The three executives earlier pleaded innocent to three counts each of wire fraud and one count each of securities fraud, mail fraud and conspiracy to commit securities and mail fraud. A spokeswoman for US Attorney Michael Shelby in Houston, Kesha Handy, would not discuss the Dynegy case, but said typically a re-arraignment is scheduled for a change of plea, the Associated Press reports. Attorneys for all three did not immediately return telephone calls from The Associated Press for comment Tuesday. ENERGY CLUB: Recalls Nutty Fruit Mix Due To Undeclared Sulfites --------------------------------------------------------------- Energy Club, Inc. of Pacoima, California is recalling its Nutty Fruit Mix product because it may contain undeclared sulfites. People who have an allergy or severe sensitivity to sulfites run the risk of serious or life-threatening allergic reaction is they consume these products. Nutty Fruit Mix was distributed nation-wide throughout the continental United States and may have been purchased by consumers in various retail establishments. The product can be identified by its bright yellow and orange header cards with the Energy Club logo visible on the lower portion of the front panel. The header card is attached to a see-through cellophane bag clearly displaying the product. No illnesses have been confirmed to date. The recall was initiated after it was discovered that the Nutty Fruit Mix product containing sulfites was distributed in packaging that did not reveal the presence of the sulfites. Production has been suspended until the company is certain that the problem has been corrected. Consumers who have purchased Energy Club, Inc. Nutty Fruit Mix are urged to return it to the place of purchase for a full refund. Consumers with questions may contact the company by Phone: 818-834-8222. EVERLASTING DISTRIBUTORS: Recalls Ricoa For Undeclared Peanuts -------------------------------------------------------------- Everlasting Distributors, Inc. is recalling 4 oz. boxes of Ricoa Curly Tops Milk Chocolate because they may contain undeclared peanuts. People who have allergies to peanuts run the risk of serious or life-threatening allergic reactions if they consume this product. The recalled Ricoa Curly Tops are packaged in a cardboard box with UPC# 480004021116. Curly Tops were sold in New Jersey and New York. The recall was initiated after routine sampling by New York State Department of Agriculture and Markets food inspectors revealed that the peanut-containing product was distributed in packaging that did not reveal the presence of peanuts on the labels. No illnesses have been reported to date in connection with this problem. Consumers who are allergic to peanuts and have purchased 4 oz. packages of Ricoa Curly Tops Milk Chocolate are urged to return them to the place of purchase. Consumers with questions may contact the company by Phone: 1-888-783-8080. FIDELITY NATIONAL: Consumers Lodge Antitrust Lawsuit in CA Court ---------------------------------------------------------------- Fidelity National Financial, Inc. faces two class actions filed in the Los Angeles County Superior Court naming as defendants the Company and Chicago Title. The complaints seek class action status and allege that the companies together with other title companies have conspired to fix the price of title products in violation of state and anti- trust statutes. The Company believes the lawsuits are without merit. FIDELITY NATIONAL: Shareholders File Suit Over FNIS Merger in DE ---------------------------------------------------------------- Fidelity National Financial, Inc. faces three class actions filed in Delaware Chancery Court in connection with the Company's acquisition of Fidelity National Information Services, Inc. (FNIS). The suit alleges breach of FNIS' fiduciary duties. These actions have recently been consolidated. FNIS has retained counsel to represent them and the named members of their board of directors, three of whom are also directors of the Company. The Company and FNIS believe the lawsuits are without merit. FOG CUTTER: Enters Mediation of Lawsuits Over CCL Receivership -------------------------------------------------------------- Fog Cutter Capital Group, Inc. is engaged in mediation in the civil class actions filed against it, its subsidiary Fog Cap L.P. (formerly known as Wilshire Real Estate Partnership L.P.), its Chief Executive Officer, Andrew Wiederhorn, and former president, Lawrence Mendelsohn. The suits relate to the receivership of Capital Consultants, L.L.C. (CCL). The CCL Suits named multiple defendants in addition to the Company and its executives. In addition, the claimants filed claims against a number of additional parties regarding the same alleged losses, including a number of professional advisors to named defendants. The suits are: (1) TOM HAZZARD, ET AL., V. CCL, ET AL., US District Court of Oregon, Civil No. CV 00-1338-HU (filed September 29, 2000); (2) MARK EIDEM, ET AL., V. TRUSTEES UNITED ASSN. UNION LOCAL 290, ET AL., U.S. District Court of Oregon, Civil No. CV 00-1446-HA (filed October 26, 2000); (3) NANCY SCHULTZ, ET AL., V. GARY KIRKLAND, ET AL., U.S. District Court of Oregon, Civil No. CV 00-1377-HA (filed October 10, 2000); (4) LARRY MILLER, ET AL., V. LEE CLINTON, ET AL., U.S. District Court of Oregon, Civil No. CV00-1317-HA (filed September 26, 2000); (5) SALVATORE J. CHILIA, ET AL., V. CCL, ET AL., U.S. District Court of Oregon, Civil No. CV 00-1633 JE (filed November 29, 2000); and (6) MADOLE V. CAPITAL CONSULTANTS ET. AL., U.S. District Court of Oregon, Civil No. CV 00-1600-HU (filed December 1, 2000) In the HAZZARD, CHILIA and MADOLE cases, the trustees of several Taft-Hartley trusts filed suit against CCL and several individuals and organizations CCL did business with (including the Company, Mr. Wiederhorn and Mr. Mendelsohn). In the EIDEM, SCHULTZ and MILLER cases, the trustees who were plaintiffs in HAZZARD were in turn named as defendants in class action suits filed by beneficiaries of the Taft-Hartley trusts on which they served as plaintiff-trustees. In the cases in which the trustees were defendants, they filed third-party complaints against several parties, including the Company, Mr. Wiederhorn and Mr. Mendelsohn. In addition, a group of investors that are not Taft-Hartley trusts filed a similar complaint against the same defendants, as well as other individuals not named in the prior complaints, in the case of AMERICAN FUNERAL & CEMETERY TRUST SERVICES ET. AL. v CAPITAL CONSULTANTS ET. AL., U.S. District Court of Oregon, Civil No. 01-00609-HU (filed April 28, 2001). The CCL Lawsuits were all virtually identical and included claims against the Company, Mr. Wiederhorn and Mr. Mendelsohn alleging: (i) breaches of fiduciary duties under the Employee Retirement Income Security Act of 1974 (ERISA); (ii) knowing participation in a fiduciary breach under ERISA; (iii) knowing participation in a prohibited transaction under ERISA; (iv) knowing transfer of trust assets under ERISA; (v) negligence; (vi) common law claim for breach of fiduciary duty; (vii) tortious interference with contract; (viii) conversion; (ix) constructive trust, restitution and unjust enrichment; (x) fraud; (xi) state securities law claims; and (xii) breach of contract The CCL Lawsuits also alleged claims against Mr. Wiederhorn and Mr. Mendelsohn of tortious interference with business relationships between the Taft-Hartley trusts and CCL, as well as violations of the Racketeering Influenced and Corrupt Organization provisions of the Organized Crime Control Act of 1970, 18 U.S.C. Section 1961-1965 (RICO). The claimants in the CCL Lawsuits claimed total losses by the various plaintiffs against all defendants in the range of $400 million. Approximately $160 million of this amount arises from losses on investments, which plaintiffs alleged related to Mr. Wiederhorn and Mr. Mendelsohn and companies with which they were affiliated, for which plaintiffs alleged the Company shares some unspecified portion of the liability. Additional damages were claimed for prejudgment interest dating from the date each investment under securities law claims under which plaintiffs are seeking rescission remedies. The RICO claims include additional claims for triple damages and the tort claims include claims for punitive damages. Attorneys' fees were also sought under the ERISA, RICO and securities law claims. The claimants did not describe with any specificity the proportion or share of losses which they claim were attributable to the Company or its executives, as compared to the other parties and other potential defendants. The overall remedies sought against all defendants included claims for broad relief under the remedial provisions of ERISA, such as rescission of transactions and the imposition of a constructive trust over any trust assets which plaintiffs claimed were obtained in violation of ERISA. Certain of the claims against the Company appeared to be covered by releases that were given by CCL to the Company and Mr. Wiederhorn and Mr. Mendelsohn. The claimants' suits sought to rescind the transactions in which the releases were granted. The claimants also seek common law remedies such as damages and punitive damages. However, certain of these common law claims may be preempted by ERISA. CCL was placed in receivership by the Department of Labor and the Securities and Exchange Commission in the cases of SEC V. CAPITAL CONSULTANTS, L.L.C., et. al., U.S. District Court of Oregon, Case No. 00-1290-KI, and HERMAN V. CAPITAL CONSULTANTS, L.L.C., et. al., U.S. District Court of Oregon, Case No. 001291- KI. When the receivership order was entered, the court stayed other proceedings against CCL for several weeks. Once the stay was partially lifted, the parties deferred discovery and delayed the filing of any answers or legal challenges to the sufficiency of the pleadings in order to facilitate a confidential global mediation process. US Circuit Court Judge Edward Leavy of the Ninth Circuit Court of Appeals was selected as the mediator. Discovery and motion practice was stayed pending the outcome of the mediation, excepting only a limited amount of document production by all of the parties to the litigation. FTD INC.: Settles Consolidated Securities Suit For $10.7 Million ---------------------------------------------------------------- Flowers and florist services provider FTD, Inc. reached a $10.7 million settlement for the consolidated securities class action filed over its 2002 FTD.com merger, Reuters reports. Under the settlement, the Company will issue $10.7 million of shares of its class A common stock to the class members, and take a related $11 million charge in its fiscal fourth quarter. The Company did not admit to any wrongdoing on their part, or verified the suit's claims, under the agreement. "The company and the other defendants have denied, and continue to deny, that they have committed any violation of federal securities or other laws," it said in a written statement. The Company expects a court to determine soon whether it would approve the settlement. IBM CORPORATION: IL Court Pension Ruling To Affect Other Firms -------------------------------------------------------------- The United States District Court for the Southern District of Illinois' ruling against IBM Corporation over the way it changed its traditional pension plan could affect hundreds of other companies who changed their plans in a similar manner, the New York times reports. In 1995, the Company switched to a hybrid plan called a pension equity plan, and in 1999 it converted to what is called a cash- balance plan. That type combines some features of traditional pensions, which provide a defined benefit at retirement, with other features of 401(k) retirement plans. A class action was then filed on behalf of approximately 140,000 current and former employees who alleged that the Company's pension plan discriminates against older employees and that the pension plan was adjusted twice since 1995 in a way that was unfair to older members, an earlier Class Action Reporter story states. Judge Patrick Murphy ruled that the Company discriminated against the class because the changes would leave them with smaller benefits at retirement than younger workers would have when they eventually retired. The Company plans to appeal. Judge Murphy's ruling only dealt with liability, but the court would tackle the question on how to tackle the issue of how the employees would be compensated. This issue is delicate because market forces have magnified pension costs to all companies, including IBM. "All cash-balance plans would be viewed as age discriminatory" if the ruling is upheld on appeal, David M. Speier, senior consulting actuary with Watson Wyatt, a consulting firm that has helped IBM and other companies make changes to their pension plans told the New York Times. The corporate world had hoped that disputes over cash-balance pensions would be resolved this year by regulations being written by the Internal Revenue Service. "The court's decision is in sharp tension with the Treasury's regulatory position," J. Mark Iwry, a senior fellow at the Brookings Institution and a former benefits tax counsel at the Treasury Department told the Times. An IBM spokeswoman told the Times the company planned an immediate appeal. She said it was not clear whether an appeal could be granted before Judge Murphy addressed the question of compensation. "We stand by our plan and believe it does not discriminate on the basis of age," said the spokeswoman, Kendra Collins. "Under the court's interpretation of the law, every cash-balance plan is illegal." LEHMAN BROTHERS: Not Liable To Return Monies First Alliance Paid ---------------------------------------------------------------- A federal judge ruled recently against a claim that could have left Lehman Brothers Holdings liable for more than $80 million in a bankruptcy proceedings related to First Alliance, a now defunct home-equity lender, the Dow Jones International News reports. The order handed down by US District Judge David Carter in California, denied a claim sought by the bankruptcy trustee liquidating the assets of First Alliance Corporation, an Irvine, California lender that had received financial backing from Lehman. In 2000, First Alliance filed for Chapter 11 protection under the federal bankruptcy code. A class action pursued by 4,500 borrowers of subprime First Alliance loans accused both First Alliance and Lehman of fraud. The borrowers alleged fraudulent loan practices at First Alliance. In June 2003, a federal jury found that Lehman had substantially assisted the alleged fraud at First Alliance, holding Lehman responsible for 10 percent of a $50.9 million damage verdict. Lehman has not decided whether to appeal that jury finding. The case decided more recently, involving the claim made against Lehman by the bankruptcy trustee liquidating First Alliance assets. The claim by the trustee is related to the class action described above in that the bankruptcy relied upon the finding of fraud against Lehman to support his claim that Lehman should make repayment of about $83 million in loans plus interest that Lehman has been paid in stages as one of First Alliance's creditors. The trustee contended that Lehman should return the money because of its role in the alleged fraud. Although Judge Carter found that Lehman's financing of First Alliance constituted significant, active and knowing participation by Lehman in the First Alliance fraud, he did not find that participation sufficient to trigger repayment of the monies paid by First Alliances for loans made by Lehman to the now defunct company. Judge Carter said in his ruling that Lehman's activities were not a contributing factor that brought about the bankruptcy of First Alliance. Judge Carter also said the court does not condone Lehman's activities, but its conduct does not demonstrate gross or egregious misconduct that shocks the conscience of the court, even when placed against the heightened and rarely-met standard for the subordination of non-insider, non-fiduciary claims. Larry Gabriel, an attorney for the bankruptcy trustee, said he was disappointed by Judge Carter's decision; in fact, he said he could not understand it, since the court said Lehman had aided and abetted the fraud; a finding also made by the court in the borrowers' class-action lawsuit. MANOR DELICATESSEN: Recalls Potato Salad For Possible Listeria -------------------------------------------------------------- New York Agriculture Commissioner Nathan L. Rudgers today warned consumers not to eat "Potato Salad" purchased from Manor Delicatessen Inc., due to listeria contamination. The "Potato Salad" was sold from an uncoded bulk display at the store's deli department. Manor Delicatessen Inc. is voluntarily recalling the product. The "Potato Salad" was sold in the Woodhaven section of Queens, New York. The problem was discovered as a result of routine sampling by New York State Department of Agriculture and Markets food inspectors. Production of the product has been suspended while the company investigates the source of the problem. Listeria is a common organism found in nature. It can cause serious complications for pregnant women, such as still birth. Other problems can manifest in people with compromised immune systems. Listeria can also cause serious flu-like symptoms in healthy individuals. No illnesses have been reported to date in connection with this problem. Consumers who have purchased this product should return it to the place of purchase or discard it. MEDCO HEALTH: NJ Court Approves $42.5M Consumer Suit Settlement --------------------------------------------------------------- The United States District Court in New Jersey granted preliminary approval to a $42.5 million agreement proposed by Medco Health Solutions to settle several class actions charging the Company with overcharging clients, the Associated Press reports. The Company handles prescription drug benefits for more than 62 million Americans. The suit alleges that Medco favored more expensive drugs made by its parent, Merck & Co., Inc. over those made by competitors instead of helping clients get discounted drugs. Federal Judge Charles Brieant approved the settlement, which provides for cash compensation of $42.5 million for plaintiffs, part of which represents the price difference between Merck drugs provided to health plan members and equivalent, less- expensive drugs made by competitors. The Company will also be required to change its operations so its clients will find its business practices easier to understand. Attorneys for the plaintiffs declined to comment, the Associated Press reports. "We're confident that our clients will agree that this settlement represents a pragmatic business approach that allows us to remain focused on their needs," Medco's president and chief executive, David B. Snow Jr., said in a statement. Lawyers for both sides now will notify Medco's clients of the proposed settlement, telling them how to participate, opt out or comment on the case. A December 11 hearing is scheduled for final approval of the settlement. MODELING AGENCIES: Justice Dept Probes Model Antitrust Charges -------------------------------------------------------------- Lawyers with the United States Justice Department's antitrust division are investigating several modeling agencies, including Elite Model Management and Ford Models, Inc. over charges that they fixed models' commission rates, Reuters reports. Last month, the United States District Court in New York granted class action status to a lawsuit charging the agencies with fixing models' commission rates at 20 percent, which is twice the 10 percent allowed by state law for employment agencies. The Companies allegedly conspired to evade state pricing regulations by calling themselves model management companies. The suit further alleged that price-fixing in the industry stretches back to the 1970s. They contend the agencies used a trade association called the International Model Management Association as a clearinghouse to discuss rates and other competitive terms. Representatives of Elite and Ford were not immediately available for comment, Reuters states. They and other agencies named in the class action case have denied wrongdoing. The Justice Department has conducted interviews in connection with antitrust complaints, sources involved in the case told Reuters. A spokeswoman for the department declined to comment on the case or whether department was investigating. According to an article in Monday's edition of the Wall Street Journal, the model agencies filed briefs with the court arguing that the modeling business is intensely competitive and that all their meetings were legal and proper. MOTOROLA INC.: Shareholders Launch Lawsuit Over Telsim Financing ---------------------------------------------------------------- Motorola, Inc. faces several class actions filed on behalf of purchasers of the Company's common stock from February 3, 2000 through May 14, 2001, seeking an unspecified amount of damages. The first suit was filed against the former chief financial officer of Motorola on December 24, 2002 in the United States District Court for the Southern District of New York, alleging breach of fiduciary duty and violations of Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. The plaintiffs claim the price of Motorola's stock was artificially inflated by a failure to disclose vendor financing to Telsim Mobil Telekomunikasyon Hizmetleri A.S. (Telsim) in connection with the sale of telecommunications equipment by Motorola. Eighteen additional putative class action complaints have been filed in federal court, including the Southern District of California, the Southern District of New York and the Northern District of Illinois, alleging the same or similar violations of the federal securities laws arising out of the failure to disclose vendor financing in connection with the sale of equipment to Telsim, but naming additional defendants, including Motorola, Inc, as well as CEO Chris Galvin and former COO Robert Growney. A lead plaintiff has been selected for the Illinois and New York cases, and that is the State of New Jersey on behalf of the Department of Treasury, Division of Investment. The Company expects that all of the complaints will be consolidated into one case, most likely in either Illinois or New York. Following the consolidation, a new complaint will be filed and the defendants' time to answer or otherwise plead will be extended to a time mutually agreed upon. MOTOROLA INC.: Pension Plan Members Launch ERISA Suit in N.D. IL ---------------------------------------------------------------- Motorola, Inc. faces a purported civil class action filed in the United States District Court for the Northern District of Illinois. The suit also names as defendants the Company's former Chief Financial Officer, its former Vice President and Director of Benefits and other as yet unnamed individual defendants who either were members of administrative committees or committees of the Motorola Board of Directors with oversight authority for the Motorola 401(k)/profit sharing plan. The suit alleges various breaches of fiduciary duty to plan participants who invested in the Motorola Stock Fund option under the plan, in violation of the Employee Retirement Income Security Act (ERISA). Among other things, plaintiff claims that defendants failed to disclose to participants that Motorola's contract with Telsim required "risky" vendor financing and that in failing to do so, defendants improperly continued to offer a Motorola Stock Fund as an investment option under the plan, they acted in their own interest rather than the interest of the plan participants and they over-allocated assets into Motorola common stock and failed to diversify plan investments adequately, thereby subjecting plan participants to undue financial risk. Plaintiff proposes a class period of May 16, 2000 through the present and seeks an unspecified amount of damages and equitable relief. NETZERO INC.: Enters Settlement For Securities Fraud Suits in NY ---------------------------------------------------------------- Netzero, Inc. entered a memorandum of understanding to settle a consolidated securities class action filed in the United States District Court for the Southern District of New York against it, certain of its officers and directors, and the underwriters of its initial public offering, Goldman Sachs Group, Inc., BancBoston Robertson Stephens, Inc. and Salomon Smith Barney, Inc. The complaint alleges that the prospectus through which NetZero conducted its initial public offering in September 1999 was materially false and misleading because it failed to disclose, among other things, that: (1) the underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the underwriters allocated to those investors material portions of the restricted number of NetZero shares issued in connection with the offering; and (2) the underwriters had entered into agreements with customers whereby the underwriters agreed to allocate NetZero shares to those customers in the offering in exchange for which the customers agreed to purchase additional NetZero shares in the aftermarket at pre- determined prices. Plaintiffs are seeking injunctive relief and damages. Additional lawsuits setting forth substantially similar allegations were also served against NetZero on behalf of additional plaintiffs in April and May 2001. The case against NetZero was consolidated with approximately 300 other suits filed against more than 300 issuers that conducted their initial public offerings between 1998 and 2000, their underwriters and an unspecified number of their individual corporate officers and directors. Counsel for the plaintiffs, the issuers and the insurers for the issuers have entered into a Memorandum of Understanding regarding a proposed settlement in the consolidated suit, which is subject to court approval and other conditions. PRICEWATERHOUSECOOPERS: Settles Bonuses Suit For $1.8 Million ------------------------------------------------------------- PricewaterhouseCoopers Consulting agreed to settle for $1.8 million a class action filed in the Washington D.C. Superior Court on behalf of recent college graduates who were told they were hired by the firm, the Washington Post reports. Later, when they moved to Washington D.C., the Company told them their job was cancelled. Lead plaintiff Megan Secrest graduated from Penn State in 2001, and moved to Washington, D.C., after she was offered a $52,000 per year job and a $7,000 signing bonus. After the firm told her the job was cancelled, she filed a suit. Ms. Secrest found the other members of the class through a congratulatory group email the Company sent to the newly hired. A number of the plaintiffs had contacted the Company on their own to ask for reimbursement for moving costs after they relocated in anticipation of getting a job, Woodley Osborne, attorney for the plaintiffs, told the Post. Although the employment contracts were "at-will" and could be terminated without penalty, the group's lawyers argued that the signing bonus was a contract that must be honored. Under the settlement, each plaintiff will receive about 90 percent of the signing bonus promised by the Company, Mr. Osborne continued. The bonuses ranged from $3,000 to $7,000. Attorneys for the class will receive $363,000. "I'm proud because we showed that even a big company should have to honor their commitments," Ms. Secrest, who after six months of unemployment found a federal job paying $40,000 a year, told the Post. "It isn't really about the money. It's about making them keep their promises." "We deny the merits of the suit and entered into a settlement to avoid the costs, burdens and disruptions of protracted litigation," David Silber, a PwC spokesman told the Post. PUBLIC SERVICE: Asks NJ Court To Dismiss Lawsuit Over Gas Meters ---------------------------------------------------------------- Public Service Electric & Gas Co., Inc. asked Burlington County, New Jersey court to dismiss a class action demanding that the Company move or protect all gas meters located within 36 inches of a driveway, parking space and/or garage opening and seeking damages. The suit was commenced after a Mount Laurel, New Jersey woman's car skidded on the ice and severed her gas line, on February 24. The subsequent explosion and fire destroyed three homes and damaged two others in the housing complex. The driver was not injured, an earlier Class Action Reporter story states. The utility has also asked the Board of Public Utilities (BPU) to intervene because it has specific knowledge of the issues involved. The Company cannot predict the outcome of this matter or any potential cost to move or protect such gas meters. QUINTEK TECHNOLOGIES: SEC Files Securities Complaint in C.D. CA --------------------------------------------------------------- The Securities and Exchange Commission filed a complaint in the US District Court for the Central District of California against Quintek Technologies, Inc., Thomas W. Sims, and PanaMed Corporation. The Commission's complaint alleges that between October 2001 and March 2002, Sims, who was then the president of both companies, wrote or reviewed five press releases issued by Quintek or PanaMed as well as memoranda and other materials disseminated to investors in a private offering of PanaMed stock. The complaint further alleges that the releases and offering materials contained false and misleading statements concerning, among other things, a large order for Quintek's product, testing of PanaMed's product, and revenue projections for PanaMed. Moreover, the complaint alleges that both companies failed to timely file numerous mandatory periodic reports with the Commission and that PanaMed has failed to file its most recent annual report. The complaint seeks to permanently enjoin all of the defendants from further violations of Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 10b-5, 13a-1 and 13a-13 thereunder, and, additionally, to permanently enjoin Sims and PanaMed from further violations of Section 17(a) of the Securities Act of 1933. Quintek, without admitting or denying the allegations in the Commission's complaint, has consented to an order of permanent injunction against future violations of Sections 10(b) and 13(a) of the Exchange Act and Rules 10b-5, 13a-1 and 13a-13 thereunder. Mr. Sims, without admitting or denying the allegations in the Commission's complaint, has consented to an order permanently enjoining him from future violations of the foregoing provisions, as well as Section 17(a) of the Securities Act. Sims has also consented to an order imposing a five-year officer and director bar, a five-year penny stock bar, and a $25,000 civil money penalty. TALX CORPORATION: Asks MO Court to Dismiss Securities Fraud Suit ---------------------------------------------------------------- Talx Corporation asked the United States District Court for the Eastern District of Missouri to dismiss a consolidated amended securities class action filed against it and: (1) William W. Canfield, (2) Craig N. Cohen, (3) Richard F. Ford, (4) Stifel, Nicolaus & Company, Incorporated and (5) A.G. Edwards & Sons, Inc. The case was originally brought on behalf of all persons who purchased or otherwise acquired shares of the Company's common stock between July 18, 2001 and October 1, 2001, including as part of the secondary offering. The complaint alleges, among other things, that certain statements in the registration statement and prospectus for the Secondary Offering, as well as other statements made by the Company and/or the individual defendants during the putative class period, were materially false and misleading because they allegedly did not properly account for certain software and inventory, did not reflect certain write-offs, and did not accurately disclose certain business prospects. The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder against the Company and the Individual Defendants, violations of Section 11 of the Securities Act of 1933 against the Company, the Individual Defendants and the underwriters, and violation of Section 15 of the Securities Act of 1933 against Mr. Canfield. On May 20, 2002, the Company and the individual defendants filed a motion to dismiss the consolidated suit, and the underwriter defendants filed a separate motion to dismiss. On March 31, 2003, the court granted defendants' motion in part, dismissing plaintiffs' claims under Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, without prejudice. The court granted plaintiffs sixty additional days to file an amended consolidated complaint, and defendants sixty days thereafter to respond to the amended complaint. On May 29, 2003, plaintiffs filed an amended consolidated complaint, adding allegations pertaining to the Company's December 2002 restatement of financials and expanding the putative class period to include all persons who purchased or otherwise acquired shares of the Company's common stock between April 25, 2001 and November 14, 2002. The amended complaint alleges, among other things, that certain statements in the registration statement and prospectus for its August 2001 secondary common stock offering, as well as other statements made by the Company and/or the Individual Defendants during the amended putative class period, were materially false and misleading because the Company: (i) capitalized instead of expensed $1.6 million related to a patent technology license agreement executed in March 2001; (ii) expensed approximately $158,000 in bonus payments to executive officers in the first quarter of fiscal 2002 instead of the fourth fiscal quarter of 2001; (iii) improperly recognized revenue and expenses during the amended putative class period; and (iv) miscalculated diluted earnings per share during the amended putative class period. The amended complaint also alleged, as did the original complaint, that the Company did not properly account for certain software and inventory, did not reflect certain write-offs, and did not accurately disclose certain business prospects. On July 30, 2003, the defendants filed a motion to dismiss the amended complaint. The Company intends to defend vigorously against the plaintiffs' claims. However, due to the inherent uncertainties of litigation, it cannot accurately predict the ultimate outcome of the litigation. An unfavorable outcome could have a material adverse impact on its business, financial condition and results of operations. TOBACCO LITIGATION: Louisiana Trial To Resume When Jury Returns --------------------------------------------------------------- At least a few weeks will pass before attorneys return to a Louisiana court to let a jury consider a stop-smoking program that the jury earlier, in phase one of the trial of a class action, decided the smokers should have. The smokers had asked for a stop-smoking program paid for by Big Tobacco. About three weeks will be needed to get the jury back to court, the Associated Press Newswires reports. Russ Herman, an attorney who represents the class of smokers and former smokers in the class-action suit, said he expected lawyers to hear from State District Judge Richard Ganucheau within the next week about starting the second phase of the trial. A third phase of the trial, before Judge Ganucheau, will be held later if the jury decides anyone is entitled to the cessation programs. The tobacco industry says people smoke for individual reasons, and can quit or not quit for individual reasons; therefore, contend the lawyers of Big Tobacco, the issue should not be decided on a class action basis. Mr. Herman has said he envisions smoking cessation clinics at Louisiana hospitals with counselors for those smokers who want to give up tobacco. There has been no estimate of what that kind of program might cost the industry. However, the industry said that 90 percent of its potential cost disappeared when the jury rejected the medical monitoring, for which the plaintiffs asked in their lawsuit. TRAVACALM: Australians To Launch Lawsuit Over Adverse Reactions --------------------------------------------------------------- More than 200 Australians intend to file a class action, after suffering adverse reactions to travel sickness tablet Travacalm, the Herald Sun reports. Travacalm was recalled after reports surfaced that it caused caused people to hallucinate and try to jump off boats and planes. Pan Pharmaceuticals immediately instituted a massive recall after the reports were revealed. A federal drug watchdog group revealed more Australians suffered adverse reactions than previously thought. The group reportedly received reports of 124 people who suffered from several reactions including hallucinations and blurred vision, in the first five months of this year. 24 of the 124 people needed hospital treatment. Reactions lasted up to several days in some cases, it said. Tests found some tablets contained doses of a key ingredient that were up to seven times higher than the quantity stated, the Herald Sun reports. The bulletin says the first five reports of adverse reactions to the over-the-counter travel sickness tablet were received in one week in January. It confirmed the reactions were caused by overdoses of a key ingredient, hyoscine. "The reports described combinations of hallucinations, confusion, ataxia (a loss of muscle co-ordination) and blurred vision," the report says. "It was recognized that hyoscine poisoning would account for this pattern of reactions." Kerry O'Shea, a spokeswoman for law firm Maurice Blackburn Cashman, told the Sun 200 Australians who claimed to have suffered adverse events after using Travacalm had registered for a class action. However, she said the case was on hold pending a decision by the TGA on criminal charges. Therapeutic Goods Administration spokeswoman Kay McNiece told the Sun the criminal investigation was continuing. She said investigations into whether any other Pan products had caused "adverse events" were also continuing, and no serious cases had yet been found. UNITED ONLINE: Reaches Settlement in CA Consumer Fraud Lawsuit -------------------------------------------------------------- United Online, Inc. reached a settlement in a consumer class action filed in the Los Angeles County Superior Court for the State of California against it and its subsidiaries NetZero and Juno. Plaintiffs allege that the defendants used marketing and promotional materials to mislead or deceive the alleged class members regarding their billable Internet services. Plaintiffs are seeking injunctive relief, restitution, disgorgement of profits, the establishment of a constructive trust and attorneys' fees. The parties have entered into a settlement agreement in this case which is subject to final approval by the court. UNITED ONLINE: Discovery Proceeds in Consumer Fraud Suit in NY -------------------------------------------------------------- United Online, Inc.'s internet service provider Juno faces a class action filed in the Supreme Court of the State of New York for the County of New York, alleging unjust enrichment, unfair and deceptive business practices and breach of contract. Specifically, plaintiff alleges that Juno was unjustly enriched and deceived consumers by: (1) advertising "free" Internet access services and limiting the usage of heavier users of the service, and (2) advertising a free trial month for its premium service and not disclosing that the free month begins when the software is requested, rather than when it is first used, resulting in users receiving less than one month of free use. Plaintiff is seeking damages, injunctive relief and attorneys' fees. Discovery is ongoing and no trial date has been set. Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals ------------------------------------------------- August 14, 2003 FEN-PHEN GLOBAL SETTLEMENT AND TRIAL UPDATE Mealey Publications The Westin Bonaventure Hotel, Los Angeles Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com 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 AND INTERNATIONAL 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: TOXIC 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, 2003 MASS TORT LITIGATION TOOLS FOR PARALEGALS Mealey Publications The Ritz-Carlton Hotel, Atlanta Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.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 20, 2003 FUNDAMENTALS OF INSURANCE COVERAGE LAW Mealey Publications The Westin Chicago River North Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com October 21, 2003 FUNDAMENTALS OF REINSURANCE AND INSOLVENCY Mealey Publications The Westin Chicago River North Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com October 23 - 24, 2003 THE SECOND INTERNATIONAL ADVANCED FORUM ON RUN-OFF AND COMMUTATIONS American Conference Institute New York Marriott East Side Contact: 1-888-224-2480; http://www.americanconference.com October 24, 2003 7TH ANNUAL NATIONAL INSTITUTE ON CLASS ACTIONS American Bar Association San Francisco, CA Contact: 800-285-2221; abacle@abanet.org October 27-28, 2003 INSURANCE COVERAGE DISPUTES CONCERNING CONSTRUCTION DEFECTS Mealey Publications The Westin Chicago River North Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com 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 November 18, 2003 DAUBERT 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 11-13, 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 11-13, 2003 EMERGING SECURITIES LITIGATION CONFERENCE Emerging Securities Litigation Conference Mealey Publications The Westin Kierland Resort & Spa, Scottsdale 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 April 14-17, 2004 INSURANCE INSOLVENCY AND REINSURANCE ROUNDTABLE Mealey Publications The Scottsdale Princess, Scottsdale, AZ Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.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 ------------------------ August 05-31, 2003 DAMAGES IN TEXAS INSURANCE LITIGATION: EVALUATING, PLEADING, AND PROVING CLEOnline.Com Contact: 512-778-5665; info@cleonline.com August 05-31, 2003 NBI PRESENTS "EMERGING ISSUES IN CALIFORNIA INDOOR AIR QUALITY AND TOXIC MOLD LITIGATION CLEOnline.Com Contact: 512-778-5665; info@cleonline.com August 05-31, 2003 NBI PRESENTS "LITIGATING THE CLASS ACTION LAWSUIT IN FLORIDA CLEOnline.Com Contact: 512-778-5665; info@cleonline.com September 16, 2003 AORTIC ANEURYSM DEVICE LITIGATION Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com 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 Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com SHOULD I FILE A CLASS ACTION? LawCommerce.Com / Law Education Institute Contact: customerservice@lawcommerce.com THE EFFECTS OF ASBESTOS ON THE PULMONARY SYSTEM Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com THE STATE OF ASBESTOS LITIGATION: JUDICIAL PANEL DISCUSSION Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com TRYING AN ASBESTOS CASE LawCommerce.Com Contact: customerservice@lawcommerce.com THE IMPACT OF LORILLAR ON STATE AND LOCAL REGULATION OF TOBACCO SALES AND ADVERSTISING American Bar Association Contact: 800-285-2221; abacle@abanet.org ________________________________________________________________ The Meetings, Conferences and Seminars column appears in the Class Action Reporter each Wednesday. Submissions via e-mail to carconf@beard.com are encouraged. New Securities Fraud Cases CATALINA MARKETING: Schiffrin & Barroway Files FL Stock Lawsuit --------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the Middle District of Florida on behalf of all purchasers of the common stock of Catalina Marketing Corporation (NYSE:POS) from January 17, 2002 through June 30, 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 numerous positive statements concerning the Company's ability to grow its revenues and earnings at a rapid pace and the strong demand that existed for the Company's products, especially at its Health Resource division. In truth and in fact, however, the Company was experiencing a slowdown in its revenue growth because its pharmaceutical clients had curtailed their spending on promotional items, such as the Company's newsletters, and retail pharmacies had become more cautious about participating in the Company's advertising programs and had reduced their distribution of the Company's health newsletters. When these facts were belatedly disclosed by the Company on October 1, 2002, the price of Catalina common stock fell from $27.97 per share to close at $17.90 per share -- a drop of 36% - - on extremely heavy trading volume. For more details, contact Marc A. Topaz or Stuart L. Berman by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone: 1-888-299-7706 (toll free) or 1-610-667-7706 or by E- mail: info@sbclasslaw.com CATALINA MARKETING: Cauley Geller Lodges Securities Suit in FL -------------------------------------------------------------- Cauley Geller Bowman & Rudman, LLP initiated a securities class action in the United States District Court for the Middle District of Florida, on behalf of purchasers of Catalina Marketing Corporation (NYSE: POS) publicly traded securities during the period between April 18, 2002 and October 1, 2002, inclusive. The lawsuit 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 numerous positive statements concerning the Company's ability to grow its revenues and earnings at a rapid pace and the strong demand that existed for the Company's products, especially at its Health Resource division. In truth and in fact, however, the Company was experiencing a slowdown in its revenue growth because its pharmaceutical clients had curtailed their spending on promotional items, such as the Company's newsletters, and retail pharmacies had become more cautious about participating in the Company's advertising programs and had reduced their distribution of the Company's health newsletters. When these facts were belatedly disclosed by the Company on October 1, 2002, the price of Catalina common stock fell from $27.97 per share to close at $17.90 per share -- a drop of 36% - - on extremely heavy trading volume. For more details, contact Samuel H. Rudman, David A. Rosenfeld, Jackie Addison or Heather Gann by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 by Fax: 1-501-312-8505 or by E-mail: info@cauleygeller.com IMPATH INC.: Milberg Weiss Lodges Securities Lawsuit in S. D. NY ---------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class action on behalf of purchasers of the securities of IMPATH, Inc. (NasdaqNM: IMPH) between April 25, 2001 and July 29, 2003, inclusive, seeking to pursue remedies under the Securities Exchange Act of 1934. The action is pending in the United States District Court for the Southern District of New York, against the Company and: (1) Carter Eckert, (2) James Agnello, (3) David Cammarata, (4) Richard P. Adelson, and (5) Anu D. Saad 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 25, 2001 and July 29, 2003. The complaint alleges that IMPATH's quarterly press releases and SEC filings were materially false and misleading because they failed to disclose that the Company had materially overstated its accounts receivables and improperly capitalized a material asset, thereby artificially inflating the Company's reported Class Period results and financial condition. On July 30, 2003, before the open regular trading, IMPATH issued a press release announcing that its audit committee had begun an investigation into possible "accounting irregularities" by the Company and that the Company believes it has overstated its accounts receivable had been improperly capitalizing its GeneBank asset. As a result of these developments, IMPATH warned that a restatement of previously filed financial reports was "likely," and that the Company has advised its creditors that its financial reports "may have been inaccurate as a result of these issues." In response to this announcement, the NASDAQ Stock Market halted trading in the Company's common stock and announced that the stock will not resume trading until IMPATH provides NASDAQ with additional information. For more details, contact Steven G. Schulman by Mail: One Pennsylvania Plaza, 49th fl., New York, NY, 10119-0165 by Phone: (800) 320-5081 by E-mail: impath@milbergNY.com or visit the firm's Website: http://www.milberg.com IMPATH INC.: Brodsky & Smith Launches Securities Suit in S.D. NY ---------------------------------------------------------------- The Law offices of Brodsky & Smith, LLC initiated a securities class action on behalf of shareholders who purchased the common stock and other securities of Impath, Inc. (NasdaqNM:IMPH), between February 21, 2001 and July 29, 2003 inclusive. The class action was filed against the Company and certain of its officers and directors in the United States District Court for the Southern District of New York. The complaint alleges that defendants violated federal securities laws by issuing a series of material misrepresentations to the market during the class period, thereby artificially inflating the price of Impath securities. Specifically, the Company's financial statements published during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles. On July 30, 2003, the Company issued a press release announcing that an investigation had been initiated into possible accounting irregularities involving accounts receivables which Impath believes have been materially overstated and will likely require restatement. As a result, shares of Impath were halted from trading. For more details, contact Marc L. Ackerman by Mail: Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by Phone: 877-LEGAL-90 or by E-mail: clients@brodsky-smith.com IMPATH INC.: Abbey Gardy Lodges Securities Fraud Suit in S.D. NY ---------------------------------------------------------------- Abbey Gardy, LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of all persons who purchased securities of IMPATH, Inc. (NasdaqNM:IMPH) between February 24, 2000 and July 29, 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 during the Class Period thereby artificially inflating the price of IMPATH securities. On July 30, 2003, IMPATH shocked the market when it issued a press release announcing that it had initiated an investigation into possible accounting irregularities involving accounts receivable which the Company believes have been materially overstated and will likely require restatement. Following this announcement, shares of IMPATH common stock were halted from trading. For more details, contact Nancy Kaboolian by Phone: (212) 889-3700 or 800-889-3701 or by E-mail: nkaboolian@abbeygardy.com IMPATH INC.: Cohen Milstein Commences Securities Suit in S.D. NY ---------------------------------------------------------------- Cohen, Milstein, Hausfeld & Toll, PLLC initiated a securities class action on behalf of its client and those who purchased or otherwise acquired the common stock of Impath Inc. (Nasdaq:IMPH) and certain of its current or former officers and directors for the period from February 21, 2001 through July 29, 2003 in the United States District Court for the Southern District of New York. The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing numerous positive statements throughout the Class Period regarding the Company's financial performance. As alleged in the complaint, these statements were each materially false and misleading when made as they failed to disclose and misrepresented the following material adverse facts which were then known to defendants or recklessly disregarded by them: (1) that the Company was failing to timely record an impairment in the value of its accounts receivables and as a result, the Company's reported financial results were artificially inflated throughout the Class Period; (2) that the Company was failing to properly account for its GeneBank(TM) asset, thereby overstating its reported financial results; and (3) as a result of the foregoing, the Company's financial statements published during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles and were therefore materially false and misleading. On July 30, 2003, Impath shocked the market when it issued a press release announcing that it had initiated an investigation into possible accounting irregularities involving accounts receivables which the Company believes have been materially overstated and will likely require restatement. Following this announcement, shares of Impath common stock were halted from trading. For more details, contact Steven J. Toll, or Lisa Polk by Mail: 1100 New York Avenue, N.W. West Tower - Suite 500, Washington, DC 20005 by Phone: 888/240-0775 or 202/408-4600 by E-mail: stoll@cmht.com or lpolk@cmht.com QUEST SOFTWARE: Lasky & Rifkind Files Securities Suit in C.D. CA ---------------------------------------------------------------- Lasky & Rifkind, Ltd. initiated a securities class action filed in the United States District Court for the Central District of California, on behalf of persons who purchased or otherwise acquired publicly traded securities of Quest Software, Inc. (Nasdaq:QSFT) between April 30, 2002 and July 23, 2003, inclusive. The lawsuit was filed against Quest Software and certain officers of the Company. The complaint alleges that throughout the Class Period, Quest Software issued false and misleading statements concerning the Company's earnings, income and Company assets. Specifically, the complaint alleges that the defendants failed to disclose or misrepresented that the Company deferred revenue and fixed the asset balances of its foreign subsidiaries and that the Company lacked adequate internal controls to ascertain its true financial condition. For more details, contact Leigh Lasky by Phone: 800-321-0476 ********* 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. 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