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           C L A S S   A C T I O N   R E P O R T E R
  
           Tuesday, September 9, 2003, Vol. 5, No. 178
                        Headlines                            
AFFYMETRIX INC.: Court Dismisses Suit For Securities Violations
ANSWERTHINK INC.: Arguments For Suit Dismissal Set October 2003
CALPINE CORPORATION: Asks CA Court To Dismiss Securities Lawsuit
CALPINE CORPORATION: Seeks Remand of Lawsuit To CA State Court
CALPINE CORPORATION: Plaintiffs To File Pension Fraud Suit in CA
CANADA: Saskatchewan Recalls Donated Blood Over West Nile Virus
CAPROCK COMMUNICATIONS: Agrees To Settle Securities Suit in TX
CATHOLIC CHURCH: Abuse Lawsuit V. Bishop Guertin School Rejected
COLLINS & AIKMAN: MI Court Consolidates Securities Fraud Suits
COSI INC.: Shareholders Launch Securities Fraud Suits in S.D. NY
CV THERAPEUTICS: Expects More CA Securities Fraud Lawsuits Soon
DIOMED HOLDINGS: Agrees To Settle Incorporation Changes Lawsuit
EXEGENICS INC.: Asks DE Court To Dismiss Fiduciary Duty Lawsuit
GEMSTAR-TV GUIDE: CA Court Hears Motion For Stock Suit Dismissal
ICN PHARMACEUTICALS: Agreed To Settle Ribapharm Investors Suit
ICN PHARMACEUTICALS: Bondholder Launches Stock Suit in CA Court
IVILLAGE INC.: Agrees To Settle Securities Lawsuits in S.D. NY
JUNK FAXES: Court Rulings, Lawsuits Might Bring End Of Industry
KEYSTONE DEVELOPMENT: PA Homeowners Commence Housing Lawsuit 
LABORATORY CORPORATION: Stockholders File Stock Suit in M.D. NC
LINCOLN ELECTRIC: Manganese Lawsuits Consolidated in Ohio Court
LOCKFORMER COMPANY: Settles Lawsuit Over Town's Polluting Water
MICROSOFT CORPORATION: To Settle Be Inc. Suits, Faces More Suits 
NATIONAL AUSTRALIA: US Investors Sue Over Bungled Asset Values
NEWKIRK MASTER: General Partner, Affiliates Face Lawsuit in CT 
PARAGON FINANCIAL: Reaches Agreement For Securities Suit in NY
PEGASUS SATELLITE: Reaches Settlement in CA Lawsuit V. DirecTV 
QUADRAMED CORPORATION: CA Court Orders Stock Suits Consolidated
SANGSTAT MEDICAL: Shareholders File Fiduciary Duty Lawsuit in CA
SINGING MACHINE: Expects FL Securities Suits To Be Consolidated
SOUTHWALL TECHNOLOGIES: Plaintiffs File Amended Suit in N.D. CA
SUPERGEN INC.: Plaintiffs Voluntarily Dismiss Securities Suits
THESTREET.COM: Agrees To Settle Securities Fraud Suit in S.D. NY
TRANSACTION SYSTEMS: To Ask NE Court To Dismiss Securities Suit
VIROPHARMA INC.: PA Court Dismisses Securities Lawsuit in Part
VOLUME SERVICES: Employees Commence Overtime Wage Lawsuit in CA 
UNITED STATES: Senators Back Amendment in Overtime Regulations
WFS FINANCIAL: Faces Two Suits For Business Violations in CA, TN
*Silica Suits Studied, Insurers, Manufacturers Seek Swift Trials
                    New Securities Fraud Cases
BEARINGPOINT INC.: Schiffrin & Barroway Files Stock Suit in VA
BEARINGPOINT INC.: Cohen Milstein Lodges Securities Suit in VA
BEARINGPOINT INC.: Cauley Geller Lodges Securities Lawsuit in VA 
CROMPTON CORPORATION: Schatz & Nobel Lodges Stock Lawsuit in CT
FIRSTENERGY CORPORATION: Marc Henzel Lodges Stock Suit in Ohio 
PEDIATRIX MEDICAL: Bernstein Liebhard Lodges Stock Lawsuit in FL
                         *********
AFFYMETRIX INC.: Court Dismisses Suit For Securities Violations
---------------------------------------------------------------
Plaintiffs voluntarily dismissed the securities class actions 
filed against Affymetrix, Inc., three of its executive officers 
and one outside director in the United States District Court
for the Northern District of California. 
The lawsuit relates to the Company's January 29, 2003 
announcement of its financial expectations for 2003 and 
subsequent announcement on April 3, 2003, updating its financial 
guidance for the first quarter of 2003.  The lawsuit alleges, 
among other things, that Affymetrix' January 29, 2003 financial 
guidance was misleading and GlaxoSmithKline plc sold Affymetrix 
shares during the first quarter of 2003 while in possession of 
material nonpublic information. 
On June 10, 2003, the plaintiffs in this action filed a notice 
of voluntary dismissal of the lawsuit without prejudice, and the 
Court granted the dismissal by order dated June 12, 2003. 
ANSWERTHINK INC.: Arguments For Suit Dismissal Set October 2003
---------------------------------------------------------------
Oral arguments for the dismissal of the consolidated securities 
class action filed against Answerthink, Inc. and certain of its 
current and former officers and directors is set for October 24, 
2003 in the United States District Court for the Southern 
District of Florida.
The suit alleges violations of the Securities and Exchange Act 
of 1934.  The suit specifically alleges misstatements and 
omissions concerning, among other things, related party 
transactions during the alleged class period of February 8, 2000
to April 25, 2002. 
The Company filed a motion seeking the dismissal of the 
consolidated suit on July 15, 2003.  Based on the status of 
these actions, it is not possible to determine the range of loss 
to the Company, if any. 
CALPINE CORPORATION: Asks CA Court To Dismiss Securities Lawsuit
----------------------------------------------------------------
Calpine Corporation asked the United States District Court for 
the Northern District of California to dismiss the consolidated 
securities class action filed against Calpine Corporation and 
certain of its officers on behalf of purchasers of the Company's 
securities between January 5, 2001 and December 13, 2001.
The consolidated suit alleges that, during the purported
class periods, certain Calpine executives issued false and 
misleading statements about the Company's financial condition in 
violation of Sections 10(b) and 20(1) of the Securities Exchange 
Act of 1934, as well as Rule 10b-5.  The suit seeks an 
unspecified amount of damages, in addition to other forms of
relief.
The Company filed a motion to dismiss this consolidated action 
in early April 2003.  A hearing on this motion was scheduled on 
July 29, 2003.  However, the court took the motions to dismiss 
and the plaintiffs' motion in opposition under submission 
without a hearing.  A ruling on these motions is expected in the 
fall. 
CALPINE CORPORATION: Seeks Remand of Lawsuit To CA State Court
--------------------------------------------------------------
The Hawaii Structural Ironworkers Pension Fund asked for the 
remand of the class action it filed against Calpine Corporation, 
its directors and certain investment banks to the California 
Superior Court, San Diego County. 
The suit is brought on behalf of a purported class of purchasers 
of the Company's equity securities sold to public investors in 
its April 2002 equity offering.  The suit alleges that the 
Registration Statement and Prospectus filed by Calpine, 
effective April 24, 2002, contained false and misleading 
statements regarding the Company's financial condition in 
violation of Sections 11, 12 and 15 of the Securities Act of 
1933. 
The suit relies in part on the Company's restatement of certain 
past financial results, announced on March 3, 2003, to support 
its allegations.  The suit seeks an unspecified amount of 
damages, in addition to other forms of relief. 
The Company removed the suit to federal court in April 2003 and 
filed a motion to transfer the case for consolidation with the 
other securities class action lawsuits in the US District Court 
Northern District Court of California in May 2003.  The 
plaintiff has sought to have the action remanded to state court. 
The Company is awaiting the court's ruling with respect to the 
motion to remand.  The Company considers this lawsuit to be 
without merit.
CALPINE CORPORATION: Plaintiffs To File Pension Fraud Suit in CA
----------------------------------------------------------------
Plaintiffs agreed to consolidate two class actions filed in the 
United States District Court for the Northern District of 
California on behalf of participants in the Calpine Corporation 
Retirement Savings Plan.
The suits allege that various filings and statements made by the 
Company during the class period were materially false and 
misleading, and that the defendants failed to fulfill their 
fiduciary obligations as fiduciaries of the 401(k) Plan by 
allowing the 401(k) Plan to invest in Calpine common stock.  The 
suits seek an unspecified amount of damages, in addition to 
other forms of Shareholder relief. 
CANADA: Saskatchewan Recalls Donated Blood Over West Nile Virus
---------------------------------------------------------------
All blood donated in Saskatchewan in the past month is being 
recalled as the West Nile virus hit the Prairies unexpectedly 
hard while sparing areas that had been bracing for a major 
outbreak, The Globe and Mail reports.  Saskatchewan announced 
another 28 West Nile cases yesterday, bringing its total to 97, 
the most of any province in Canada.
Scientists have not been able to explain why the province, along 
with Alberta, has identified 43 cases of the disease, have 
become Canada's West Nile hotspots.  Canadian Blood Services 
have responded by recalling from hospitals across Canada, 4,000 
units of blood collected in Saskatchewan from August 4 to August 
31.  Derek Mellon, of the Blood Service, said anyone who 
recently received blood from Saskatchewan should contact their
doctors if they have concerns.
Mr. Mellon had reason to be cautious.  A 57-year-old Ontario 
woman died last November after receiving West Nile-contaminated 
blood in a transfusion at a Toronto hospital.  Her family is 
currently involved in a class action filed in June against the 
Ontario government, alleging it failed to act swiftly enough to 
mitigate the spread of the disease.
At the beginning of the summer, it was Ontario that was bracing 
for the onslaught of human cases of the flu-like virus.  
However, that onslaught never came, and the virus is definitely 
moving west.
Harvey Artsob, chief of zoonotic diseases at Health Canada's 
National Microbiology Lab in Winnipeg, said the movement west 
"is a dramatic change in patterns, and we are trying to 
understand and explain why."
"When the virus is built up in nature, Culex Pipiens feeds on 
birds and spreads it to other birds, and the saving grace is 
that this species, for quite a while was not believed to feed on 
humans.  But what happened is that as the virus builds up, other 
species of mosquitoes get involved; species that feed on birds 
and also on humans," he said.  "Culex Tarsalis, builds up the 
virus in nature from birds, but they feed on humans and horses; 
so they do not need other mosquitoes to act as bridging 
vectors."  
The sudden drop in bird population that usually follows a summer 
when West Nile virus is extremely active, could force the 
transmission elsewhere and result in the Culex Tarsalis feeding 
on humans since the bird population is low.
CAPROCK COMMUNICATIONS: Agrees To Settle Securities Suit in TX
--------------------------------------------------------------
CapRock Communications Corporation agreed to settle the 
consolidated securities class action filed in the United States 
District Court for the Northern District of Texas on behalf of 
all purchasers of its common stock during the period April 28,
2000 through July 6, 2000.
The lawsuits principally allege that the Company made material 
misstatements or omissions of fact in violation of Section 10(b) 
of the Securities Exchange Act.  Consolidated with these claims 
are allegations that CapRock's June 2000 registration statement 
for a public offering of common stock contained materially false 
and misleading statements and omitted certain material 
information about CapRock in violation of Section 11 of the 
Securities Act.  The named defendants in the suit include the 
Company and certain of its officers and directors. 
On July 7, 2003, the parties executed a Memorandum of 
Understanding (MOU) by which the parties agreed to settle the 
action for a cash payment of $11 million which would be covered 
by a combination of insurance and a rebate of previously paid 
insurance premiums.  The settlement contemplated by the MOU is 
conditioned upon satisfactory confirmatory discovery regarding 
the fairness of the settlement, execution of a definitive 
settlement agreement, and final court approval.
CATHOLIC CHURCH: Abuse Lawsuit V. Bishop Guertin School Rejected
----------------------------------------------------------------
A judge has struck down a proposed class action filed against
Bishop Guertin High School and the religious order that owns it, 
by four men who claim they were sexually abused while they were 
students, the Associated Press Newswires reports.
The ruling by Hillsborough County Superior Court Judge William 
Groff, in New Hampshire, means each of the men will have to sue 
the Catholic high school and the Brothers of the Sacred Heart 
separately, according to their lawyer, Peter Hutchins.
Mr. Hutchins sued in February of this year on behalf of three 
clients and any other people who claim they were sexually abused 
by members of the Brothers of the Sacred Heart.  A fourth 
plaintiff was added to the lawsuit later.
The lawsuit claims the school and the order had a "lax and 
tolerant attitude" about teachers accused of molesting minors.  
Mr. Hutchins said he believed there could be dozens of other 
students who were sexually abused by brothers at the school who 
have yet to come forward.
"My hope, ultimately, was that working within the concept of a
class action would engender the type of cooperation that lends 
to a settlement and avoids a trial," Mr. Hutchins said.  "I do 
not mind trying the cases, but litigating and trying every case 
is not the way to go.  It is damaging to the victims; it damages 
the school and the brothers."
Mr. Hutchins said the Diocese of Manchester used the avenue of a 
class action to settle claims against it, and he thought it made
sense to do the same here.  In court filings, the school and the 
order have sought to have other cases thrown out of court.  In 
interviews, lawyers have said the school and the order have no 
legal or moral obligation to the former students at the school 
who claim brothers teaching at the school sexually abused them.
The three men who originally brought the lawsuit claim they were
sexually abused by Brother Guy Beaulieu, a former teacher at the 
school.  A fourth plaintiff claimed Leon Cyr, a former history 
teacher at the school, sexually abused him.
Brother Beaulieu has admitted to sexually abusing as many as 18 
students at the school between 1971 and 1988, according to court 
records.  Also named as defendants in the suit were Leo Labbe, 
Roland Dupuis and Roger Argencourt.  Brother Argencourt died 
last year.  
Last week, the order settled with two other Hutchins clients, 
who claimed they were abused while they were boys attending Camp 
Fatima in Gilmanton.
COLLINS & AIKMAN: MI Court Consolidates Securities Fraud Suits
--------------------------------------------------------------
The United States District Court for the Eastern District of 
Michigan consolidated the securities class actions filed against 
Collins & Aikman Corporation, Heartland Advisors and ten current 
and former senior officers and/or directors of the Company.
The suits allege violations of Sections 10(b) and 20(a) of the 
Securities Exchange Act of 1934 and Rule 10b-5 promulgated 
thereunder, on behalf of purchasers of the common stock of
the Company between August7, 2001 and August2, 2002.
On August 4, 2003, the court consolidated all five pending 
actions and appointed lead plaintiffs for the purported class.  
The Company believes that the claims are without merit and 
intends to vigorously defend the lawsuits.  The Company does not 
believe that the suit will have a material impact on its 
financial condition, results of operations or cash flows.
COSI INC.: Shareholders Launch Securities Fraud Suits in S.D. NY
----------------------------------------------------------------
Cosi, Inc. faces several class actions filed in the United 
States District Court for the Southern District of New York, 
alleging that the Company and various of its officers and 
directors and the underwriter of the Company's IPO violated 
Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, as 
amended, by misstating, and by failing to disclose, certain 
financial and other business information.
The consolidated suit was filed on behalf of a purported class 
of purchasers of the Company's stock allegedly traceable to its
November 22, 2002 IPO, that at the time of the IPO.  The suit 
specifically alleges that:
     (1) the Company's offering materials failed to disclose 
         that the funds raised through the IPO would be 
         insufficient to implement the Company's expansion plan; 
     (2) it was improbable that the Company would be able to 
         open 53 to 59 new restaurants in 2003; 
     (3) at the time of the IPO, the Company had negative 
         working capital and therefore did not have available 
         working capital to repay certain debts; and 
     (4) the principal purpose for going forward with the IPO 
         was to repay certain existing shareholders and members 
         of the Board of Directors for certain debts and to 
         operate the Company's existing restaurants.
The plaintiffs in the Securities Act Litigation generally 
request recessionary damages, expert fees, attorneys' fees, 
costs of court and pre- and post-judgment interest.  The 
litigation is at a preliminary stage, and the Company believes 
that it has meritorious defenses to these claims.
CV THERAPEUTICS: Expects More CA Securities Fraud Lawsuits Soon
---------------------------------------------------------------
CV Therapeutics, Inc. faces a securities class action filed in 
the United States District Court for the Northern District of 
California, on behalf of purchasers of the Company's securities,
against the Company and certain of its officers and directors.
The suit alleges violations of federal securities laws, and 
alleges that the defendants made statements concerning the 
Company's New Drug Application for Ranexa, a drug for the 
potential treatment of chronic angina.  The suit further alleges 
that the statements were allegedly misleading or contained 
material omissions, and that these alleged improper acts took 
place in the spring and summer of 2003.  The lawsuit seeks 
unspecified damages. 
As is typical in this type of litigation, at least one other 
purported securities class action lawsuit containing 
substantially similar allegations has since been filed against 
the defendants, and the Company expects that additional lawsuits 
containing substantially similar allegations may be filed in the 
near future. 
DIOMED HOLDINGS: Agrees To Settle Incorporation Changes Lawsuit
---------------------------------------------------------------
Diomed Holdings, Inc. agreed to settle the class action and 
motion for permanent injunction filed in the Delaware Chancery 
Court against it, challenging one of the amendments to the 
Company's certificate of incorporation that were to have been 
voted upon at the Company's annual meeting of stockholders to 
have been held on July 29, 2003. 
The amendment in question would increase the number of 
authorized shares of the Company's common stock to 500 million.  
The claims of the class plaintiff challenged the propriety of 
the record date set for the 2003 annual meeting, the voting of 
all outstanding classes of the Company's capital stock as one 
class and the rights of the holders of the Company's Class C 
Stock and Class D Stock to convert their preferred shares and 
vote their preferred shares as if they had been converted.
On August 6, 2003, the Company entered into a stipulation of 
settlement to resolve this case.  The terms of the settlement 
required the adjournment of its 2003 annual meeting and the 
reconvening of its annual meeting during the late third quarter 
or early fourth quarter of 2003. 
At the reconvened annual meeting, the Company will seek the 
approval of its stockholders for the matters that had been 
proposed for the annual meeting originally to have been held on 
July 29, 2003.  The Company anticipates in addition that, at the 
reconvened annual meeting, it will seek the approval of its 
stockholders for the issuance of shares of its common stock to 
the investors that invest in its contemplated financing, as well 
as the issuance of common stock to the investors that provided 
an aggregate of $3.2 million bridge financing to the Company in 
December 2002 and May 2003.  In addition, the settlement 
requires the Company to pay up to $150,000 in to the class 
plaintiff's legal fees.
The Company has disclaimed any liability whatsoever relating to 
any of the settled claims, has denied having engaged in any 
wrongful or illegal activity or having violated any law or 
regulation or duty, has denied that any person or entity has 
suffered any harm or damages as a result of the settled claims 
and has made the settlement to avoid the distraction, burden and 
expense occasioned by continued litigation.  
The court has made no finding that the Company or any of its 
related persons engaged in any wrongdoing or wrongful conduct or 
otherwise acted improperly or in violation of any law or 
regulation or duty in any respect.
EXEGENICS INC.: Asks DE Court To Dismiss Fiduciary Duty Lawsuit
---------------------------------------------------------------
eXegenics, Inc. asked the Delaware Court of Chancery to dismiss 
the class action filed by The M&B Weiss Family Limited 
Partnership of 1996 against it and certain of its directors.  
The suit was filed on behalf of the Company's stockholders, and 
purportedly as a derivative action on behalf of eXegenics 
against the directors.
The complaint alleges, among other things, that the defendants 
have:
     (1) mismanaged eXegenics, 
     (2) made unwarranted and wasteful loans and payments to 
         certain directors and third parties, 
     (3) disseminated a materially false and misleading proxy 
         statement in connection with the 2003 annual meeting of 
         eXegenics' stockholders, and 
     (4) breached their fiduciary duties to act in the best
         interests of eXegenics and its stockholders. 
The complaint seeks, among other things, court orders mandating 
that the defendants cooperate with parties proposing bona fide 
transactions to maximize stockholder value, make corrective 
disclosures with respect to the proxy statement for the 2003 
annual meeting, and account to eXegenics and the plaintiffs for 
damages suffered as a result of the actions alleged in the 
complaint.  The plaintiffs are, in addition, seeking an award of 
costs and attorneys' fees and expenses. 
The defendants filed a joint motion with the court to dismiss 
the complaint for failure to state a claim and for failure to 
make the statutorily required demand on eXegenics to assert the 
subject claims. 
GEMSTAR-TV GUIDE: CA Court Hears Motion For Stock Suit Dismissal
----------------------------------------------------------------
The United States District Court for the Central District of 
California heard Gemstar-TV Guide International, Inc.'s motion 
to dismiss the consolidated securities class action filed 
against it and certain of its executive officers and directors, 
alleging violations of the Securities Exchange Act of 1934 and 
the Securities Act of 1933.
The alleged claims were brought under Sections 10(b) and 20(a) 
of the 1934 Act, Section 11 of the 1933 Act and SEC Rule 10b-5 
and seek unspecified monetary damages.  The suits allege that 
the defendants intentionally:
     (i) failed to properly account for revenue accrued from 
         Scientific-Atlanta, Inc. (SA); 
    (ii) failed to properly account for a non-monetary 
         transaction, pursuant to which intellectual property 
         rights were obtained in exchange for cash and 
         advertising credits; and 
   (iii) failed to properly record the fair value of technology 
         investments and marketable securities acquired in 
         connection with the Company's acquisition of TV Guide. 
Plaintiffs allege that this had the effect of materially 
overstating the Company's reported financial results.  
On May 2, 2003, the Company filed a motion to dismiss the 
consolidated complaint.  At the conclusion of the hearing, the 
court took the motion under submission, and no ruling has yet 
been issued.
In April and May 2002, the Company, along with certain directors 
and executive officers, were sued in three purported shareholder 
derivative actions in the California Superior Court for the 
County of Los Angeles.  These purported derivative lawsuits 
allege various breaches of fiduciary duty and violations of the 
California Corporations Code based upon many of the same facts 
and circumstances as alleged in the federal shareholder suits 
and upon facts and circumstances relating to the Company's 
November 2002 management and corporate governance restructuring.  
These lawsuits seek unspecified monetary damages. 
In June 2003, the Company, along with the individual defendants, 
moved to dismiss the operative complaint in these consolidated 
actions.  On July 23, 2003, the Court granted the various 
defendants' motions, and granted plaintiffs 20 days in which to 
attempt to amend their complaint. 
On May 14, 2003, plaintiffs' counsel in another purported 
shareholder derivative action filed in the Court of Chancery of 
the State of Delaware announced that the plaintiffs would seek 
to dismiss the complaint without prejudice and requested that 
the parties so stipulate.  On June 6, 2003, the plaintiffs in 
the Delaware action, with the consent of the Company, dismissed 
their complaint without prejudice.
ICN PHARMACEUTICALS: Agreed To Settle Ribapharm Investors Suit
----------------------------------------------------------------
ICN Pharmaceuticals, Inc. agreed to settle the consolidated 
securities class action filed on behalf of certain stockholders 
of its subsidiary Ribapharm, Inc., alleging, among other things, 
that the Company breached its fiduciary duties as a controlling 
stockholder of Ribapharm in connection with its tender offer for 
the shares of Ribapharm it did not already own.
On August 4, 2003, the Company and the plaintiffs reached an 
agreement in principle to settle these lawsuits and, after 
settlement papers are prepared, will present that settlement to 
the Delaware Court of Chancery for its approval.
ICN PHARMACEUTICALS: Bondholder Launches Stock Suit in CA Court
---------------------------------------------------------------
ICN Pharmaceuticals, Inc. and some of its current and former 
directors and executive offices face a bondholder class action 
filed in Orange County Superior Court.
The lawsuit alleges that defendants violated Sections 11 and 15 
of the Securities Act of 1933 by making false and misleading 
statements in connection with an offering of Convertible 
Subordinated Notes in November 2001, thereby artificially 
inflating the market price of the Notes.  The plaintiffs 
generally demand compensatory damages, including interest. 
IVILLAGE INC.: Agrees To Settle Securities Lawsuits in S.D. NY
--------------------------------------------------------------
iVillage, Inc. agreed to settle the class actions filed against 
it, several of its present and former executives and its 
underwriters in connection with its March 1999 initial public 
offering in the United States District Court for the Southern 
District of New York. 
A similar class action lawsuit was filed in the same court 
against its subsidiary Women.com, several of its former 
executives and its underwriters in connection with Women.com's 
October 1999 initial public offering. 
The complaints generally assert claims under the Securities Act, 
the Exchange Act and rules promulgated by the Securities and
Exchange Commission (SEC).  The plaintiffs request class action 
certification, unspecified damages in an amount to be determined 
at trial, and costs associated with the litigation, including 
attorneys' fees.
In February 2003, the defendants' motion to dismiss certain of 
the plaintiffs' claims was granted in part, but, for the most 
part, denied.  In June 2003, a proposed settlement of this 
litigation was structured between the plaintiffs, the issuer 
defendants, the issuer officers and directors named as 
defendants, and the issuers' insurance companies. 
The proposed settlement generally provides, among other things, 
that the issuer defendants and related individual defendants 
will be released from the litigation without any liability other 
than certain expenses incurred to date in connection with the 
litigation, the issuer defendants' insurers will guarantee $1.0 
billion in recoveries by plaintiff class members, the issuer 
defendants will assign certain claims against the underwriter 
defendants to the plaintiff class members, and the issuer 
defendants will have the opportunity to recover certain
litigation-related expenses if the plaintiffs recover more than 
$5.0 billion from the underwriter defendants.
The respective boards of directors of iVillage and Women.com 
each approved the proposed settlement in July 2003.  The 
proposed settlement is now subject to approval by the other 
involved parties as well as to the final approval of the court.  
There can be no assurance that this proposed settlement will be 
approved and implemented in its current form, or at all.
JUNK FAXES: Court Rulings, Lawsuits Might Bring End Of Industry
----------------------------------------------------------------
The frustration expressed by Sheridan Obrien, a graphic designer 
who works from her home, is shared by thousands of other people:  
"I feel very invaded, very angry and helpless."   Ms. O'brien 
added that the unsolicited faxes use up her toner and paper, and 
wake her late at night, according to a report by the Associated 
Press Newswires.
That kind of frustration has led to dozens of lawsuits and two 
major court rulings in the past six months against faxed ads.  
At issue in both court decisions targeting faxes was the federal 
Telephone Consumer Protection Act of 1991, which bans faxing 
advertisements without prior consent from recipients.  It allows 
consumers to sue the senders of the ads for $500 to $1,500 per 
unsolicited fax.
In March, the Eighth Circuit Court of Appeals in St. Louis, 
ruled in support of the act, overturning a lower court ruling 
that held the law was an unconstitutional restriction on the 
First Amendment rights of fax advertisers.  The Eighth Circuit's 
ruling was echoed last month by a California appellate decision 
that essentially gave state residents the go-ahead to sue over 
unsolicited faxes.
"As a mass medium of advertising, fax could be dead," said John 
Kamp, a marketing industry attorney who represents several fax 
companies.
The legal wrangling reflects a broader backlash against such 
advertising nuisances as pre-recorded phone messages and 
telemarketing phone calls.  A national do-not-call list that 
blocks phone sales pitches has grown to more than 48 million 
numbers since it began accepting submissions on June 27.  At 
least 32 individual states also have their own do-not-call laws. 
About a hundred lawsuits targeting unwanted faxes are pending 
around the country.  They range from small claims to about two 
dozen class actions.  Their resolutions should be influenced by 
the decisions mentioned above.
In one typical case, a judge in Georgia ordered a Hooters 
restaurant to pay nearly $12 million for sending unsolicited 
faxes through a local telemarketing company.  The award was 
later reduced to about $9 million through a settlement, said 
Harry Revell, an attorney for the plaintiff.
In addition, attorneys general in Arkansas, Illinois, Michigan, 
New Jersey, California, Kentucky, Missouri and Texas have sued 
fax companies in recent years.  In its fight against junk faxes 
and illegal telemarketing, the Federal Communications Commission 
has issued nearly 200 fines and citations since 1999.  
Meanwhile, the FCC has approved a rule requiring companies that 
want to fax advertisements to obtain written permission from 
consumers.  Companies would need permission even for faxes sent 
to customers who already might have requested that information 
be sent them.  The new regulation was scheduled to take effect 
last month but was delayed until January 1, 2005, after the FCC 
received hundreds of complaints and requests to clarify the 
changes.
There is a legitimate market for mass faxing.  It helps 
pharmaceutical companies send drug information to doctors; and 
hotels and cruise lines use it to reach travel agents -- these 
are but a couple instances of appropriate and useful uses, among 
some others, in a nuisance-plagued industry.
KEYSTONE DEVELOPMENT: PA Homeowners Commence Housing Lawsuit 
------------------------------------------------------------
In Monroe County, Pennsylvania where hundreds of homeowners have 
complained they were tricked into buying vastly overpriced 
houses, the state attorney general announced recently an $8.5 
million lawsuit on behalf of the consumers against several real 
estate professionals and appraisers, The Allentown Morning Call 
reports.  
Many of the buyers were forced into foreclosure or bankruptcy 
and several lost their homes, the lawsuit contends.  They were 
unable to pay higher-than-promised mortgages and unable to 
refinance because they owed more than the homes were truly 
worth, Attorney General Michael Fisher said.
"Let me tell you, this has been one of the biggest cases I have 
seen in my seven years as attorney general," Mr. Fisher said.
Eddie and Zelda DeRiso of Tobyhanna are two of the Monroe County
residents whose complaints to the Bureau of Consumer Protection 
prompted the civil lawsuit.  They said that when their home was 
independently appraised it turned out to be worth $85,000 less 
than the $207,000 they paid in 1998.  They have been unable to 
refinance their mortgage, which the lawsuit says carries an 
interest rate of more than 15 percent, and they are facing 
foreclosure.
The lawsuit accuses Keystone, one of 11 defendants in the case, 
with artificially inflating the DeRiso's down payment to process 
the financing agreement.  The lawsuit seeks $7.2 million in 
restitution for consumers; $1.1 million in penalties; $50,4000 
toward cost of the investigation and additional damages.  It 
also asks that the defendants be barred from conducting business 
in Pennsylvania. 
Another lawsuit, for $10.2 million, targets 14 different 
defendants and names 170 alleged victims, while the first 
lawsuit named 85.  
These lawsuits have produced a federal class action, accusing
most of those named in the Attorney General's first civil suit 
of racketeering.  Chase Manhattan Bank, not sued by Mr. Fisher, 
is a defendant in the federal racketeering lawsuit, which was 
filed in 2001, and is awaiting a ruling on class action status.
LABORATORY CORPORATION: Stockholders File Stock Suit in M.D. NC
---------------------------------------------------------------
The Laboratory Corporation of America and certain of its 
executive officers face several securities class actions filed 
in the United States District Court for the Middle District of 
North Carolina.
Each of the complaints alleges that the defendants violated the
federal securities laws by making material misstatements and/or
omissions that caused the price of the Company's stock to be
artificially inflated between February 13 and October 3, 2002.  
The plaintiffs seek certification of a class of substantially 
all persons who purchased shares of the Company's stock during
that time period and unspecified monetary damages.  
The Company anticipates that these six cases, as well as any 
subsequently filed cases making substantially similar 
allegations, will be consolidated and proceed as a single case.   
The defendants deny any liability.  
LINCOLN ELECTRIC: Manganese Lawsuits Consolidated in Ohio Court
---------------------------------------------------------------
Lincoln Electric Holdings, Inc. was named as co-defendant in 7 
manganese cases within the state of Louisiana, on behalf of 
purported classes of individuals who reside and/or work (or 
resided and/or worked) in various Southern states. 
The suits allege that exposure to manganese contained in welding 
consumables caused the plaintiffs to develop adverse 
neurological conditions, including a condition known as 
manganism.  The claimants in cases alleging manganese-induced 
illness seek compensatory and, in most instances, punitive 
damages, usually for unspecified sums.  
On June 23, 2003, the Judicial Panel on Multi District 
Litigation transferred all pending federal cases relating to 
alleged manganese exposure to the United States Northern 
District of Ohio for consolidated pretrial proceedings.
LOCKFORMER COMPANY: Settles Lawsuit Over Town's Polluting Water
---------------------------------------------------------------
Lisle, Illinois' Lockformer Co., accused of polluting 
residential drinking water wells with a toxic solvent, has 
agreed to settle a class action with the 1,500 families at a 
cost of $12.5 million. The Company has also agreed to connect 
their homes to Lake Michigan water at a cost of $2 million to $3 
million, according to a report by Associated Press Newswires.
Lockformer already has paid $10 million to settle with another 
set of residents, as well as $18 million in attorney fees and 
cleanup costs.  In a separate settlement, the company agreed to 
pay $6 million to Anne Schreiber, a 34-year-old doctor, who 
claimed the pollutant, trichloroethylene (TCE) gave her cancer.
State environmental officials blame Lockformer for a 1991 TCE 
leak at its Lisle metal fabricating plant.  The chemical is a 
colorless liquid used to remove grease from metal parts, and is 
found in adhesives, spot removers and paint removers.
Neither Lockformer, nor its parent companies, Met-Coil Systems 
and Mestek Inc admitted guilt in the settlement. Lockformer 
filed for bankruptcy last month.  Officials with the Illinois 
Environmental Protection agency said that action would not 
shield the company from cleanup responsibilities.
The plaintiffs also sued Honeywell Inc., which took over a 
company that supplied TCE to Lockformer.  Honeywell settled with 
the plaintiffs for $3.6 million, said Richard Silverman, 
spokesman in the company's Morristown, New Jersey headquarters.  
Of that amount, $1.2 million went to Anne Schreiber, the doctor 
who claimed TCE caused her cancer.
MICROSOFT CORPORATION: To Settle Be Inc. Suits, Faces More Suits 
----------------------------------------------------------------
Although Microsoft continues to face a 12-state class action 
filed on behalf of consumers, the company has reached settlement 
in the antitrust lawsuit with Be Inc., and has agreed to pay 
that firm $23.3 million over claims that the software-maker 
Microsoft negotiated deals with computer makers that cut out the 
smaller company's (Be Inc.'s) competing operating system, 
Associated Press Newswires reports.
The lawsuit with Be Inc. is one of four private antitrust suits 
brought against Microsoft after a federal judge's ruling that 
Microsoft had acted as an illegal monopoly, based on its 
dominance in desktop operating systems.
Microsoft settled another of the private cases in May of this 
year, by agreeing to pay AOL Time Warner $750 million to settle 
its antitrust lawsuit on behalf of AOL's Netscape division.  The 
other two private antitrust suits, filed by Sun Microsystems and
Burst.com remain in pretrial proceedings in federal court in 
Maryland.
Be Inc., a maker of software based in Mountain View, California,
contended that Microsoft violated California and federal 
antitrust laws by negotiating deals with computer manufacturers 
to use Microsoft's operating system exclusively, cutting out 
Be's competing operating system.  Be Inc. is in the process of 
shutting down its business under a dissolution plan approved by 
its shareholders in 2001.  Microsoft asserted, and continues to 
assert, that Be Inc. failed for reasons unrelated to Microsoft.
NATIONAL AUSTRALIA: US Investors Sue Over Bungled Asset Values
--------------------------------------------------------------
Two United States investors have launched a class action against
National Australia Bank (NAB) over botched 2002 asset valuations 
in the Florida-based mortgage business, HomeSide Lending, 
Australian publication The Age, reports.  
The lawsuit gives NAB a legal problem it thought had disappeared 
when it settled claims against three senior HomeSide executives, 
judged by a bank investigation to be partly responsible for the 
miscalculations.
The financial backing of the plaintiffs in the latest HomeSide 
action is unclear, but is believed the investors Maria Kennedy 
and Robert Morrison are represented by two US law firms with 
extensive experience in class-action and securities lawsuits, 
namely, Goodkind, Labaton, Rudoff & Sucharow and Cauley, Geller, 
Bowman & Rudman.
A spokesman said NAB would be represented by the New York law 
firm, Wachtell, Lipton, Rosen & Katz, that had conducted the 
bank's investigation last year to determine who was responsible 
for the miscalculated asset valuations of HomeSide.
The investors are believed to own NAB American depositary 
receipts.  Their case is believed to center on the absence of 
disclosure of the valuation miscalculations before September 
2001.  NAB, on the other hand, has claimed that it disclosed the 
problems as soon as it became aware of them.  NAB said it 
increased its estimate of the losses when it discovered, in an 
internal valuation model, that incorrect assumptions on interest 
rates were being made.
NAB sold the last of HomeSide to Washington Mutual late last 
year, but not before the problems cost the bank $3.6 billion in 
write-downs and billions of dollars in market capitalization.  
NAB's share price has since rebounded.
NEWKIRK MASTER: General Partner, Affiliates Face Lawsuit in CT 
--------------------------------------------------------------
The Newkirk Master Limited Partnerships' general partner and 
various of the general partner's affiliates face a class action 
filed in the Connecticut Superior Court, by six limited partners 
of five of the Newkirk Partnerships. 
The action alleges, among other things, that the price paid to 
non-accredited investors in connection with the Exchange was 
unfair and did not fairly compensate them for the value of their 
partnership interests.  The complaint also alleges that the 
Exchange values assigned in the Exchange to certain assets 
contributed by affiliates of the Partnership's general partner 
were too high in comparison to the Exchange values assigned to 
the Newkirk Partnerships, that the option arrangement relating 
to the Partnership's potential acquisition in the future of the 
T-2 Certificate, which represents an interest in a grantor 
trust, the mortgage assets of which consist of subordinate 
mortgage notes secured by the Partnership's real properties as 
well as other properties owned by other partnerships that are 
controlled by affiliates of the Partnership's general partner, 
was unfair to limited partners and that the disclosure document 
used in connection with the Exchange contained various 
misrepresentations and/or omissions of material facts. 
The complaint requests class action certification as well as 
compensatory and punitive damages in an unspecified amount.  
Class action discovery and briefing is underway, and there has 
not yet been discovery on the merits.
PARAGON FINANCIAL: Reaches Agreement For Securities Suit in NY
--------------------------------------------------------------
Paragon Financial Corporation reached a settlement for the 
consolidated securities class action filed in the United States 
District Court for the Southern District of New York against it 
and:
     (1) David M. Beirne, 
     (2) Michael Mortiz, 
     (3) William J. Razzouk,
     (4) Christos M. Cotsakos and 
     (5) former Chief Financial Officer Steve Valenzuela 
The purported class action alleges violation of Sections 11 and 
15 of the Securities Acts of 1933 and Sections 10(b) and 20(a) 
of the Securities Exchange Act of 1934 and Rule 10b-5 
promulgated thereunder.  The essence of the complaint is that 
the defendants issued and sold the Company's common stock 
pursuant to a registration statement for its October 7, 1999 
initial public offering (IPO) without disclosing to investors 
that certain underwriters in the offering had solicited and 
received excessive and undisclosed commissions from certain 
investors. 
The complaint also alleges that the registration statement 
failed to disclose that the underwriters allocated Company 
shares in the IPO to customers in exchange for the customers' 
promises to purchase additional shares in the aftermarket at 
pre-determined prices above the IPO price, thereby maintaining,
distorting and/or inflating the market price for the shares in 
the aftermarket. 
The action is being coordinated with approximately three hundred 
other nearly identical actions filed against other companies.  
On July 15, 2002, the Company moved to dismiss all claims 
against it and the individual defendants. 
On February 19, 2003, the court denied the motion to dismiss the 
complaint against the Company.  The court dismissed the Section 
10(b) claim against the individual defendants, but denied the 
motion to dismiss the Section 11 claim and the Section 15 and 
20(a) control person claims against the individual defendants.
The Company has approved a Memorandum of Understanding (MOU) and 
related agreements which set forth the terms of a settlement 
between the Company and the plaintiff class.  Thus far, 289 of 
the companies sued in nearly identical actions have also 
approved the MOU and related agreements.  The MOU and related
agreements are subject to a number of contingencies, including 
the negotiation of a settlement agreement and approval by the 
Court. 
PEGASUS SATELLITE: Reaches Settlement in CA Lawsuit V. DirecTV 
--------------------------------------------------------------
Pegasus Satellite Television (PST) and Golden Sky Systems (GSS) 
reached a settlement for the class action they filed in the 
United States District Court in Los Angeles, California against 
DIRECTV, Inc. as representatives of a proposed class that would 
include all members and affiliates of the National Rural 
Telecommunications Cooperative (NRTC) that are distributors of 
DIRECTV. 
The complaint contained causes of action for various torts, 
common counts, and declaratory relief based on DIRECTV, Inc.'s
failure to provide the NRTC with certain premium programming, 
and on DIRECTV, Inc.'s position with respect to launch fees and 
other benefits, term, and right of first refusal.  The complaint 
sought monetary damages and a court order regarding the rights 
of the NRTC and its members and affiliates. 
On February 10, 2000, PST and GSS filed an amended complaint, 
and withdrew the class action allegations to allow a new class 
action to be filed on behalf of the members and affiliates of 
the NRTC.  The amended complaint also added claims regarding 
DIRECTV Inc.'s failure to allow distribution through the NRTC of 
various advanced services, including Tivo.  The Court certified 
the plaintiff's class on December 28, 2000. 
On March 9, 2001, DIRECTV, Inc. filed a counterclaim against PST 
and GSS, as well as the class members, seeking two claims for 
relief - a declaratory judgment whether DIRECTV, Inc. is under a 
contractual obligation to provide PST and GSS with services 
after the expiration of the term of their agreements with the 
NRTC and an order that DBS-1 is the satellite (and the only 
satellite) that measures the term of PST's and GSS' agreements
with the NRTC. 
On October 29, 2001, the court denied DIRECTV Inc.'s motion for
partial summary judgment on its term counterclaim.  On June 20, 
2001, PST and GSS filed a second amended complaint, updating the 
claims asserted in the earlier complaints.
On June 22, 2001, DIRECTV, Inc. brought suit against PST and GSS 
in Los Angeles County Superior Court for breach of contract and 
common counts.  The lawsuit pertains to the seamless marketing 
agreement dated August 9, 2000, as amended, between DIRECTV, 
Inc. and PST and GSS.  On July 13, 2001, PST and GSS terminated 
the seamless marketing agreement.  The seamless marketing 
agreement provided seamless marketing and sales for DIRECTV 
retailers and distributors. 
On July 16, 2001, PST and GSS filed a cross complaint against 
DIRECTV, Inc. alleging, among other things, that DIRECTV, Inc. 
breached the seamless marketing agreement and engaged in 
unlawful and/or unfair business practices, as defined in Section 
17200, et seq. of the California Business and Professions Code.  
This suit has since been removed to the United States District 
Court, Central District of California. 
On September 16, 2002, PST and GSS filed first amended 
counterclaims against DIRECTV, Inc.  Among other things, the 
first amended counterclaims added claims for rescission of the
seamless marketing agreement on the ground of fraudulent 
inducement, specific performance of audit rights, and punitive 
damages on the breach of the implied covenant of good faith 
claim.  In addition, the first amended counterclaims deleted the 
business and professions code claim and the claims for tortious 
interference that were alleged in the initial cross complaint. 
On November 5, 2002 the Court granted DIRECTV, Inc.'s motion to 
dismiss the specific performance claim and the punitive damages 
allegations on the breach of the implied covenant of good faith 
claim.  The court denied DIRECTV, Inc.'s motion to dismiss the 
implied covenant of good faith claim in its entirety.
DIRECTV, Inc. filed four summary judgment motions on September 
11, 2002 against the NRTC, the class members, and PST and GSS on 
a variety of issues in the case.  The motions cover a broad 
range of claims in the case, including the term of the agreement 
between the NRTC and DIRECTV, Inc., the right of first refusal 
as it relates to PST and GSS, the right to distribute the 
premiums, and damages relating to the premiums, launch fees, and 
advanced services claims.  These motions were argued on May 5, 
2003 and decided on May 22, 2003, and were then the subject of a 
motion for reconsideration argued on June 2, 2003 and decided on 
June 5, 2003.
As a result of these and earlier rulings, the term of the 
agreement, the content of the right of first refusal, and 
plaintiffs rights to launch fees and advanced services and to 
distribute premiums will all be determined at trial.  The court 
dismissed PST's tort and punitive damage claims and the 
restitution aspects of PST's unfair business practices claim 
other than with respect to launch fees. 
The court did not dismiss the injunctive relief portions
of the unfair business practices claim.  The court also ruled 
that DIRECTV, Inc. has no obligation to provide PST with 
services after the Member Agreements between PST and the NRTC 
expire, except that the ruling does not affect: 
     (1) obligations the NRTC has or may have to PST under the 
         Member Agreements or otherwise; 
     (2) obligations DIRECTV, Inc. has or may have in the event 
         it steps into the shoes of the NRTC as the provider of 
         services to PST; or 
     (3) fiduciary or cooperative obligations to deliver 
         services owed PST by DIRECT, Inc. through the NRTC.
On July 25, 2003, the court ruled on motions in limine filed by 
all parties.  While the rulings narrowed certain issues to be 
presented to the court, it did not materially alter any of the 
parties' causes of action.  The court also denied DIRECTV Inc.'s 
motion to dismiss PST and GSS, among others, on jurisdictional 
grounds.
The suit was scheduled for trial in phases beginning August 14, 
2003.  The first phase of the trial was to include issues 
relating to term and the right of first refusal.  However, the 
Court was informed of a conditional settlement reached among 
DIRECTV, Inc., the NRTC and the class relating to all of their 
claims; and, on August 12, 2003, the Court vacated the trial 
date and set a status conference for September 4, 2003.  The 
Court also ordered further settlement proceedings between 
DIRECTV, Inc. and PST. 
The announced settlement among DIRECTV, Inc., the NRTC and the 
class is conditioned on a satisfactory "fairness hearing" 
conducted by the Court relating to the class claims, the date of 
which has not been set but is anticipated to be held in 
approximately 75 to 90 days.
QUADRAMED CORPORATION: CA Court Orders Stock Suits Consolidated
---------------------------------------------------------------
The United States District Court for the Northern District of 
California ordered consolidated the securities class actions 
filed against QuadraMed Corporation and certain of its officers 
and directors.  
The plaintiffs in these actions allege, among other things, 
violations of the Securities Exchange Act of 1934 due to issuing 
a series of allegedly false and misleading statements concerning 
its business and financial condition between May 11, 2000 and 
August 11, 2002.  The complaints seek unspecified monetary 
damages and other relief.  
These matters are at an early stage.  No responses to the
complaints have yet been filed, and no discovery has taken 
place.  
SANGSTAT MEDICAL: Shareholders File Fiduciary Duty Lawsuit in CA
----------------------------------------------------------------
Sangstat Medical Corporation and each of its current directors 
faces a shareholder class action filed in the California 
Superior Court, County of Alameda, under the caption "Pignone v. 
SangStat Medical Corp., et al."
The plaintiff alleges that he is a Company shareholder and 
purports to bring the action on behalf of the holders of the 
Company's common stock.   Plaintiff asserts a single cause of 
action claiming that the Company and each of its directors has 
breached fiduciary duties to the Company shareholders by 
consenting to the proposed sale of the Company to Genzyme 
Corporation on the terms announced in the Company's August 4, 
2003, press release entitled "Genzyme to Acquire SangStat 
Medical Corporation." 
Plaintiffs allege that they do not seek monetary damages but 
instead seek only equitable relief, including a declaration by 
the court that the agreement between the Company and Genzyme was 
entered into in breach of the fiduciary duties of the defendants 
and is therefore unlawful and unenforceable, an order enjoining 
the consummation of the transaction and directing the defendants 
to exercise their fiduciary duties to obtain a transaction in 
the best interests of Company shareholders, and an order 
rescinding the transaction to the extent already implemented.   
Plaintiff also seeks costs of suit, including attorneys' fees. 
SINGING MACHINE: Expects FL Securities Suits To Be Consolidated
---------------------------------------------------------------
The Singing Machine Co., Inc. and certain of its officers and 
directors face several securities class actions filed in the 
United States District Court for the Southern District of 
Florida on behalf of all persons who purchased the Company's 
securities during the various class action periods.
The complaints that have been filed allege violations of Section 
10(b) and Section 20(a) of the Securities Exchange Act of 1934 
and Rule 10(b)-5.  The complaints seek compensatory damages, 
attorney's fees and injunctive relief.  While the specific 
factual allegations vary slightly in each case, the complaints 
generally allege that defendants falsely represented the 
Company's financial results for the years ended March 31, 2002 
and 2001.
The Company believes that the allegations in these cases are 
without merit and the Company intends to vigorously defend these 
actions.  However, as the outcome of litigation is difficult to 
predict, significant changes in the estimated exposures could 
occur which could have a material affect on the Company's 
operations.  The Company expects that all of these actions will 
be consolidated.
In July 2003, a shareholder filed a derivative action against 
the Company, its board of directors and senior management 
purporting to pursue the action on behalf of the Company and for 
its benefit.  No pre-lawsuit demand to investigate the 
allegations or bring action was made on the board of directors.  
The Company is named as a nominal defendant in this case.
The complaint alleges claims for breach of fiduciary duty, abuse 
of control, gross mismanagement, waste of corporate assets and 
unjust enrichment.  The complaint alleges that the individual 
defendants breached their fiduciary duties and engaged in gross 
mismanagement by allegedly ignoring indicators of the lack of 
control over the Company's accounting and management practices,
allowing the Company to engage in improper conduct and otherwise 
failing to carry out their duties and obligations to the 
Company.  The plaintiffs seek damages for breach of fiduciary 
duties, punitive and compensatory damages, restitution, and 
bonuses or other incentive-based or equity based compensation
received by the CEO and CFO under the Sarbanes-Oxley Act of 
2002.
The Company believes that the allegations in this derivative 
lawsuit are without merit.
SOUTHWALL TECHNOLOGIES: Plaintiffs File Amended Suit in N.D. CA
----------------------------------------------------------------
Plaintiffs file a third amended class action against Southwall 
Technologies, Inc. in the United States District Court for the 
Northern District of California, on behalf of all entities and 
individuals in the United States who manufactured and/or sold 
and warranted the service life of insulated glass units 
manufactured between 1989 and 1999 which contained the Company's 
Heat Mirror film, and were sealed with a specific type of 
sealant manufactured by the co-defendant. 
The plaintiff alleges that the sealant provided by the co-
defendant was defective, resulting in elevated warranty 
replacement claims and costs, and asserts claims against the 
Company for:
     (1) misrepresentation, 
     (2) negligence,
     (3) unfair business practices and 
     (4) false or misleading business practices
The plaintiff seeks recovery of $100 million for damages on 
behalf of the class allegedly resulting from elevated warranty 
replacement claims, restitution, injunctive relief, and non-
specified compensation for lost profits.
The Company believes all of the claims to be without merit.  The 
action is in the early stages, so an estimate of the Company's 
loss exposure cannot be made. 
SUPERGEN INC.: Plaintiffs Voluntarily Dismiss Securities Suits
--------------------------------------------------------------
Plaintiffs in several securities class actions filed against 
Supergen, Inc. and its current President and Chief Executive 
Officer agreed to voluntarily dismiss their suits, filed in the 
United States District Court for the Northern District of 
California.
The suits allege violations of the Securities Exchange Act of 
1934 and seek unspecified damages on behalf of persons who 
purchased or otherwise acquired the Company's common stock 
during the period of April 18, 2000 through March 13, 2003, 
inclusive (except that one complaint specified the period as 
between April 18, 2000 through March 14, 2003). 
The complaints alleged that during such period, the Company 
issued materially false and misleading statements and failed to 
disclose certain key information regarding Mitozytrex (mitomycin 
for injection).  The complaints did not specify the amount of 
damages sought. 
Beginning in late July 2003, each of the plaintiffs elected to 
voluntarily dismiss their respective complaints without 
prejudice.  Each of the dismissals has been approved and entered 
by the court, thus ending all of the pending securities lawsuits 
against it. 
THESTREET.COM: Agrees To Settle Securities Fraud Suit in S.D. NY
----------------------------------------------------------------
TheStreet.com reached a settlement for a consolidated securities 
class action filed in the United States District Court for the 
Southern District of New York against it, certain of its former 
officers and directors and a current director, and certain 
underwriters of the Company's initial public offering:
     (1) The Goldman Sachs Group, Inc., 
     (2) Chase H & Q, 
     (3) Thomas Weisel Partners LLC, 
     (4) FleetBoston Robertson Stephens, and 
     (5) Merrill Lynch Pierce Fenner & Smith, Inc.
The suit alleges, among other things, that the underwriters of 
TheStreet.com's initial public offering violated the securities 
laws by failing to disclose certain alleged compensation 
arrangements (such as undisclosed commissions or stock 
stabilization practices) in the offering's registration 
statement. 
TheStreet.com and certain of its former officers and directors 
and a current director are named in the Amended Complaint 
pursuant to Section 11 of the Securities Act of 1933, and 
Section 10(b) of the Securities Exchange Act of 1934.  The 
plaintiffs seek damages and statutory compensation against each 
defendant in an amount to be determined at trial, plus pre-
judgment interest thereon, together with costs and expenses, 
including attorneys' fees. 
Similar complaints have been filed against over 300 other 
issuers that have had initial public offerings since 1998 and 
all such actions have been included in a single coordinated 
proceeding.  Pursuant to a Court Order dated October 9, 2002, 
each of the individual defendants to the action has been 
dismissed without prejudice.  Additionally, pursuant to a Court 
Opinion and Order dated February 19, 2003, the claims against 
TheStreet.com for violations of Section 10(b) of the Exchange 
Act have been dismissed with prejudice.  
On June 25, 2003, a committee of the Company's Board of 
Directors conditionally approved a proposed partial settlement 
with the plaintiffs in this matter.  The settlement would 
provide, among other things, a release of the Company and of the 
individual defendants for the conduct alleged to be wrongful in 
the Amended Complaint.  The Company would agree to undertake 
other responsibilities under the partial settlement, including 
agreeing to assign away, not assert, or release certain 
potential claims the Company may have against its underwriters. 
TRANSACTION SYSTEMS: To Ask NE Court To Dismiss Securities Suit
---------------------------------------------------------------
Transaction Systems Architects, Inc. intends to ask the United 
States District Court for the District of Nebraska to dismiss 
the consolidated securities class action filed against it and 
certain individual named defendants in connection with the 
Company's restatement of its prior consolidated financial 
statements.  The Court designated as Lead Plaintiff, Genesee 
County Employees' Retirement System.
The suit alleges violations of Sections 10(b) and 20(a) of the 
Securities Exchange Act of 1934 and Rule 10b-5 thereunder, on 
the grounds that certain of the Company's Exchange Act reports 
and press releases contained untrue statements of material 
facts, or omitted to state facts necessary to make the 
statements therein not misleading, with regard to the Company's 
revenues and expenses during the class period. 
The consolidated complaint alleges that during the purported 
class period, the Company and the named officers and directors 
misrepresented the Company's historical financial condition, 
results of operations and its future prospects, and failed to
disclose facts that could have indicated an impending decline in 
the Company's revenues.  The lead plaintiff is seeking 
unspecified damages, interest, fees, costs and rescission.  The 
class period stated in the complaint is January 21, 1999 through 
November 18, 2002. 
VIROPHARMA INC.: PA Court Dismisses Securities Lawsuit in Part
--------------------------------------------------------------
The United States District Court for the Eastern District of 
Pennsylvania granted in part Viropharma, Inc.'s motion to 
dismiss the consolidated securities class actions pending 
against it and certain of its directors.  The suit alleged that 
certain Company statements about Picovir were misleading.  
The Company filed a motion to dismiss this action in August 
2002.  The court later granted in part and denied in part the 
Company's motion to dismiss the consolidated complaint.  
The Company believes it has meritorious defenses against these 
claims.  While it is not feasible to predict the outcome of this
claim at this time, the ultimate resolution of this action could 
require substantial payment by the Company which could have a 
material adverse effect on its financial position and liquidity, 
and the resolution of this matter during a specific period could 
have a material adverse effect on the quarterly or annual 
operating results for that period. 
VOLUME SERVICES: Employees Commence Overtime Wage Lawsuit in CA 
---------------------------------------------------------------
Volume Services America, Inc. faces a class action filed in the 
Superior Court of California for the County of Orange by a 
former employee at one of the California stadiums the Company 
serves alleging violations of local overtime wage, rest and meal 
period and related laws with respect to this employee and others 
purportedly similarly situated at any and all of the facilities 
the Company serves in California.   
The purported class action seeks compensatory, special and 
punitive damages in unspecified amounts, penalties under the 
applicable local laws and injunctions against the alleged 
illegal acts.  
The Company is in the process of evaluating this case and, while 
its review is preliminary, it believes that its business 
practices are, and were during the period alleged, in compliance 
with the law.  The Company has filed an answer to the complaint 
with the California state court and has filed to seek removal of 
the case to the United States District Court for the Central 
District of California. 
UNITED STATES: Senators Back Amendment in Overtime Regulations
--------------------------------------------------------------
Senate Democrats will have enough Republican support to block 
the Bush administration from ending overtime pay for about eight 
million Americans, Senator Tom Harkin (D-Iowa) said, according 
to a story by the Atlanta-Journal Constitution.  
Any change that disqualifies currently eligible workers from 
overtime pay is "anti-worker, anti-family and bad economic 
policy," Sen. Harkin said at a news conference.  He announced an 
appropriations bill amendment that would deny the Labor 
Department funding for writing the regulations.
The new rules would "take money out of the pockets of hard-
working Americans and will not create one new job," Senator 
Harkin said.  "If employers can more easily deny workers 
overtime pay, employees will not hire new workers.  They will 
instead force current workers to work longer hours without 
compensation."
The new rules, due to take effect next year, would give 
employers broad discretion to exempt workers from overtime by 
labeling them as having a "position of responsibility."  The 
rules also would declare that employees who earn more than 
$65,000 a year for non-manual labor would not qualify for 
overtime pay.
At the same time, the rules would benefit 1.3 million low-wage 
managers making less than $22,100 a year, or $425 a week, by 
making them eligible for overtime.  Business groups support the 
rule changes, and President Bush has promised to veto any 
legislation preventing the new rules from taking effect.
The Labor Department estimates 644,000 workers who now get 
overtime pay could be cut off under the new rules.  However, 
union-backed studies say the number affected would swell to more 
than eight million as employers rush to schedule employees to 
work more than 40 hours per week.
The Labor Department says the new rules could save businesses
billions of dollars by simplifying employment procedures and 
reducing legal costs.  Many companies had complained that the 
decades-old regulations force them to pay overtime to white-
collar workers such as loan officers, funeral directors and 
financial advisers, who may be earning more than $100,000 a 
year.  The companies also have said that the current definitions 
are so confusing that they encourage costly class actions by 
workers demanding overtime and back pay.  Among the high-profile 
companies that have been sued with such lawsuits are Wal-Mart 
Stores, Starbucks Corporation and Radio Shack.
The AFL-CIO labor federation said it was beginning to run a 
television ad on CNN opposing the new rules written by the Labor 
Department, and on local TV in Maine, Ohio and Missouri, which 
three states will be pivotal states in next year's elections.
In July, Democrats tried to get the Republican-controlled House 
to block the new rules, but lost on a 213-210 vote, which was 
surprisingly close.  However, the Harkin amendment has a better 
chance in the Senate, because Republicans have just a one-vote 
majority.  The Senate began debate early last week on the 
appropriations bill, to which Senator Harkin is trying to attach 
his amendment denying the Labor department funding for rewriting 
the overtime rules.
The senator said he believes that if the Senate passes his 
amendment, the provision is popular enough to survive a 
conference committee of House and Senate negotiators who must 
hammer out the final appropriations legislation.
However, if President Bush should veto such legislation, 
Congress would then have to re-pass the measure carrying the 
restriction of funds to the Labor Department by a higher than 
majority vote. 
Rules governing overtime were first written in 1938, as part of 
the Fair Labor Standards Act, a depression-era reform intended 
to shorten workweeks by making employers pay time-and-a-half for 
labor beyond 40 hours.  The overtime rules, which exempted 
corporate executives, managers and highly educated 
professionals, such as doctors and lawyers, were last updated in 
1975, when manufacturing still dominated the US economy.
WFS FINANCIAL: Faces Two Suits For Business Violations in CA, TN
----------------------------------------------------------------
WFS Financial, Inc. faces two class actions filed in the United 
States District Court for the Middle District of Tennessee and 
the Superior Court of the State of California, County of 
Alameda.  The suits raise claims under the Equal Opportunities 
Act, the California Business and Professional Code and the 
California Unruh Civil Rights Act. 
The Company does not believe that the outcome of these 
proceedings will have a material effect upon its financial 
condition, results of operations and cash flows, it revealed in 
a disclosure to the Securities and Exchange Commission.
*Silica Suits Studied, Insurers, Manufacturers Seek Swift Trials
----------------------------------------------------------------
Lawyers who are veterans of the wave of asbestos litigation have 
begun to file more and more lawsuits, contending that their 
clients are suffering from exposure to silica, The New York 
Times reports.  However, while the lawyers say they are zeroing 
in on another potentially lethal substance, their opponents 
claim that there is no medical crisis.
A coalition of insurance companies is trying to draw attention 
to the potential costs of silicosis lawsuits, which are dwarfed 
in number by the roughly 600,000 asbestos-related claims that 
have been filed.  The insurers, along with manufacturers that 
have used silica would like to see the courts deal summarily 
with the lawsuits before they become a problem as broad as 
asbestos.  Both are aware of the 60 or more companies that have 
filed for bankruptcy protection as a result of asbestos 
litigation.  Avoiding such consequences is what they hope
moving quickly now on the silica lawsuits will accomplish.
The insurers assert that lawyers bringing the silicosis lawsuits 
are cynically manipulating the justice system for financial gain 
by claiming silicosis in people who already have filed 
asbestosis claims and who may not have both diseases.  
Similarly, they point to the cynicism of obtaining two diagnoses 
for the same patient - one describing possible asbestosis, the 
other a potential case of silicosis.  Trial lawyers respond that 
if silicosis claims are rising, it is because of more widespread 
screening and a greater awareness of legal rights.
"This is about the plaintiffs' bar trying to turn silica into 
the next asbestos," said Mark A. Behrens, a lawyer in the 
Washington office of Shook, Hardy & Bacon, which is representing 
the insurers.  "It is not there yet."
There has been no increase in deaths from silica exposure, 
people in the industry say, arguing that plaintiffs' lawyers are 
manufacturing a litigation crisis, not responding to a medical 
one.  There is disagreement over whether there is a clear way to 
diagnose either disease based solely on objective criteria like 
an X-ray.  
Asbestos and silicosis can have very similar effects, said 
Gregory R. Wagner, the director of the National Institute for 
Occupational Safety and Health.  "Silicosis is a chronic lung 
disease caused by the inhalation of fine crystalline silica or 
quartz dust.  When the dust is retained in the lungs," said Mr. 
Wagner, "it starts a cycle of inflammation that scars the 
lungs."
Shortness of breath, a non-fatal condition may be a result of 
silicosis, as well as other conditions that may be fatal, he 
said.  To complicate matters, it is possible to suffer from both 
asbestiosis and silicosis, meaning that some people may 
legitimately file lawsuits involving both diseases.
Some recent and somewhat controversial scientific findings have 
given plaintiffs new ammunition, said Nathan A. Schachtman, a 
defense lawyer at McCarter & English in Philadelphia.  Some 
scientists have linked silica exposure to cancer, for example. 
While there are not a lot of cases claiming cancer caused by 
silica, he said, still, "to borrow a phrase from the BBC, it 
does sex up the litigation."
The arguments on the two fronts differ, as one listens to the 
two sides.  In asbestos cases, plaintiffs' lawyers have argued 
that manufacturers concealed how harmful the material was, but 
with silica they must argue that manufacturers failed to warn of 
the dangers, Mr. Behrens said.
The distinction matters.  If an employer knows how risky silica 
is, Mr. Behrens states, and its dangers have been around for at 
least 70 years, then the employer may be liable, but not the 
supplier.
"Traditional tort law has said, at least for suppliers, that 
there is no duty to warn where the employers have knowledge 
about the risks," Mr. Behrens said.  
Mr. Schachtman said, however, it is a law that many do not
know.   He said that after his cases in the 1980s, he never 
expected his particular expertise to be popular again.  "I 
actually thought that we had made the world safe for sand," he 
said.
No one seems to have comprehensive data on the number of 
silicosis lawsuits that have been filed.  More than 600,000 
people had filed asbestos claims as of last fall, the RAND 
Corporation has said.  One large insurer now faces 30,000 silica 
cases, up from about 2,500 a year ago, according to a spokesman 
for the coalition of insurance companies.
The US Silica Company had nearly 15,300 new claims filed against 
it through June; up from about 5,200 for all of 2002, and 
roughly 1,400 in 2001.  At least one complaint has named several 
other companies, including Bechtel, Ingersoll Rand and Lockheed 
Martin.
Silica, which for the most part is highly purified quartz, is 
used to make glass, fiberglass, paints and ceramics.  Because of 
silica's wide use, the potential for lawsuits is great, said 
Robert Glenn, president of the National Industrial Sand 
Association, whose members mine and process the industrial sand 
which is derived from quartz.
                    New Securities Fraud Cases
BEARINGPOINT INC.: Schiffrin & Barroway Files Stock Suit in VA
--------------------------------------------------------------
Schiffrin & Barroway, LLP initiated a securities class action in 
the United States District Court for the Eastern District of 
Virginia on behalf of all purchasers of the common stock of 
BearingPoint, Inc. (NYSE:BE) from October 30, 2002 through 
August 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 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 had materially overstated its net 
         income and earnings per share and undervalued its 
         identifiable intangibles (goodwill) by approximately 
         $20 million; 
     (2) that the Company had inflated its earnings by 
         improperly accounting for restructuring charges 
         relating to acquisitions; 
     (3) that the Company's financial statements were not 
         prepared in accordance with Generally Accepted 
         Accounting Principles (GAAP); 
     (4) that the Company lacked adequate internal controls and 
         was therefore unable to ascertain the true financial 
         condition of the Company; and 
     (5) that as a result, the value of the Company's net income 
         and financial results were materially overstated at all 
         relevant times.
On August 14, 2003, prior to the opening of the financial 
markets, the Company announced in a press release and in a 
concurrently filed Form 8-K that it would restate its financial 
results for the first three quarters of fiscal year 2003 due to 
certain acquisition related and other accounting adjustments. 
News of this shocked the market.  Shares of BearingPoint fell 23 
percent, or $2.41 per share, to close at $7.90, on unusually 
heavy trading volume on August 14, 2003.
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 
BEARINGPOINT INC.: Cohen Milstein Lodges Securities Suit in VA
--------------------------------------------------------------
Cohen, Milstein, Hausfeld & Toll, PLLC initiated a securities 
class action on behalf of purchasers of the securities of 
BearingPoint, Inc. (NYSE:BE) between October 30, 2002, and 
August 13, 2003, inclusive in the United States District Court 
for the Eastern District of Virginia. 
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 October 30, 2002, and 
August 13, 2003, thereby artificially inflating the price of 
BearingPoint securities. 
During the class period, the Company issued statements that 
failed to disclose and/or misrepresented the following adverse 
facts, among others: 
     (1) that the Company materially overstated its net income 
         and earnings per share and had undervalued intangible 
         goodwill by approximately $20 million; 
     (2) that the Company improperly accounted for restructuring 
         charges relating to acquisitions, thereby materially 
         inflating its earnings; 
     (3) that the Company's reported resulted were not prepared 
         in accordance with GAAP and did not fairly present the 
         Company's financial condition; and 
     (4) that, contrary to the Company's representations, the 
         Company's reported results were attributable in 
         material part to improper accounting rather than to 
         successfully integrated business combinations and 
         strategic acquisitions and transactions. 
On August 14, 2003, before the market opened, the Company issued 
a press release and concurrently filed a Form 8-K with the SEC 
announcing that BearingPoint's financial results would be 
restated for the first three quarters of fiscal 2003 due to 
acquisition and accounting related adjustments. 
In response to this announcement, shares of BearingPoint fell 
$2.41 per share or 23 percent to close at $7.90, on unusually 
heavy trading volume. 
For more details, contact Steven J. Toll or Mary Ann Fink by 
Mail: 1100 New York Avenue, N.W., West Tower -- Suite 500, 
Washington, D.C. 20005 by Phone: 888-240-0775 or 202-408-4600 or 
by E-mail: stoll@cmht.com or mfink@cmht.com 
BEARINGPOINT INC.: Cauley Geller Lodges Securities Lawsuit in VA 
----------------------------------------------------------------
Cauley Geller Bowman & Rudman, LLP initiated a securities class 
action in the United States District Court for the Eastern 
District of Virginia on behalf of purchasers of BearingPoint, 
Inc. (NYSE: BE) publicly traded securities during the period 
between October 30, 2002 and August 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 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 had materially overstated its net 
         income and earnings per share and undervalued its 
         identifiable intangibles (goodwill) by approximately 
         $20 million; 
     (2) that the Company had inflated its earnings by 
         improperly accounting for restructuring charges 
         relating to acquisitions; 
     (3) that the Company's financial statements were not 
         prepared in accordance with Generally Accepted 
         Accounting Principles (GAAP); 
     (4) that the Company lacked adequate internal controls and 
         was therefore unable to ascertain the true financial 
         condition of the Company; and 
     (5) that as a result, the value of the Company's net income 
         and financial results were materially overstated at all 
         relevant times.
On August 14, 2003, prior to the opening of the financial 
markets, the Company announced in a press release and in a 
concurrently filed Form 8-K that it would restate its financial 
results for the first three quarters of fiscal year 2003 due to 
certain acquisition related and other accounting adjustments. 
News of this shocked the market. Shares of BearingPoint fell 23 
percent, or $2.41 per share, to close at $7.90, on unusually 
heavy trading volume on August 14, 2003.
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 
CROMPTON CORPORATION: Schatz & Nobel Lodges Stock Lawsuit in CT
---------------------------------------------------------------
Schatz & Nobel PC initiated a securities class action in the 
United States District Court for the District of Connecticut on 
behalf of all persons who purchased the securities of Crompton 
Corporation (NYSE: CK) from October 26, 1998 through October 8, 
2002, inclusive.  Also included are former Crompton & Knowles 
Corporation and Witco Corporation shareholders who exchanged 
their shares for CK Witco stock pursuant to the merger.
The complaint alleges that Crompton, a company that manufactures 
and markets a wide variety of polymer and specialty products, 
and certain of its officers and directors issued materially 
false and misleading statements.  Specifically, defendants 
failed to disclose the following facts: 
     (1) that Crompton was engaged in an illegal anti-
         competitive scheme with its competitors to stabilize 
         prices within the rubber chemicals industry by agreeing 
         on prices that each competitor charged the other; 
     (2) that its financial results were a product of its anti-
         competitive behavior and were materially inflated as a 
         result; and 
     (3) that its financial results would be materially impacted 
         if Crompton were forced to stop its anti-competitive 
         behavior.
On October 8, 2002, Crompton disclosed that it and several of 
its employees had been issued grand jury subpoenas in connection 
with an investigation by US and European Union authorities 
concerning allegations of collusive dealings within the rubber 
chemicals industry.  On the next trading day, shares of Crompton 
fell $35.5%.
For more details, contact Nancy A. Kulesa by Phone: 
(800) 797-5499 by E-mail: sn06106@aol.com or visit the firm's 
Website: http://www.snlaw.net 
FIRSTENERGY CORPORATION: Marc Henzel Lodges Stock Suit in Ohio 
--------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class 
action in the United States District Court for the Northern 
District of Ohio on behalf of purchasers of the common stock of 
FirstEnergy, Corporation (NYSE:FE) between April 24, 2002 and 
August 5, 2003, inclusive.
The complaint charges FirstEnergy and certain of its officers 
and directors with violations of Sections 10(b) and 20(a) of the 
Securities Exchange Act of 1934 and Rule 10b-5 promulgated 
thereunder.  More specifically, the complaint alleges that 
defendants issued a series of material misrepresentations to the 
market during the Class Period, thereby artificially inflating 
the price of FirstEnergy's 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 materially overstated its earnings, 
         revenues, net income, and earnings per share; 
     (2) that the Company had improperly accounted for costs 
         incurred in connection with the deregulation of certain 
         of its businesses by employing an inappropriately long 
         amortization schedule, thereby understating costs and 
         materially and artificially inflating earnings during 
         the Class Period; 
     (3) that the Company had materially overvalued certain 
         leased power generation facilities that were carried as 
         assets on the Company's balance sheet; 
     (4) that the Company lacked adequate internal controls and 
         was therefore unable to ascertain the true financial 
         condition of the Company; and 
     (5) that as a result, the value of the Company's net income 
         and financial results were materially overstated at all 
         relevant times. 
On August 5, 2003, the Company reported that it would have to 
restate its financial results for fiscal year 2002 and the first 
quarter of 2003 due to its improper accounting for its annual 
amortization expenses and for above- market leases. 
News of this shocked the market. Shares of FirstEnergy fell 8.5 
percent to close at $31.33 per share on extremely heaving 
trading volume. 
For more details, contact Marc S. Henzel by Mail: 273 Montgomery 
Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by Phone: 
(888) 643-6735 or (610) 660-8000, by Fax: (610) 660-8080, by E-
mail: Mhenzel182@aol.com or visit the firm's website at 
http://members.aol.com/mhenzel182.  
PEDIATRIX MEDICAL: Bernstein Liebhard Lodges Stock Lawsuit in FL
----------------------------------------------------------------
Bernstein Liebhard & Lifshitz LLP initiated a securities class 
action in the United States District Court for the Southern 
District of Florida, Miami Division, on behalf of all persons 
who purchased or acquired Pediatrix Medical Group, Inc. 
(NYSE:PDX) securities between April 17, 2002 and June 23, 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 April 17, 2002 and June 
23, 2003, thereby artificially inflating the price of Pediatrix 
common stock. 
The complaint alleges that these statements were materially 
false and misleading because they failed to disclose, among 
other things: 
     (1) that the defendants engaged in fraudulent "upcoding" in 
         its billing practices while telling the investing 
         public that its billing practices were legitimate and 
     (2) Pediatrix materially inflated its Class Period 
         financial results through inclusion of these fraudulent 
         revenues.
On June 24, 2003, the Company issued a press release with the 
headline: "Pediatrix Notified of Billing Inquiry."  Contrary to 
defendants' public representations that its fraudulent billing 
practices were in the past, the Company announced that it had 
been advised by the U.S. Attorney's Office that it was 
conducting a civil investigation into Pediatrix's Medicaid 
billing practices nationwide.  Additionally, the Company 
announced that the U.S. Attorney's Office intended to make a 
document and information request, within the next few weeks. 
Market reaction to the news was swift.  Pediatrix's shares fell 
24% or $9.90 per share, on unusually high trading volume, to 
close at $32.20 per share.
For more details, contact Ms. Linda Flood, Director of 
Shareholder Relations by Mail: 10 East 40th Street, New York, 
New York 10016, by Phone: (800) 217-1522 or (212) 779-1414 by E-
mail: PDX@bernlieb.com or visit the firm's Website: 
http://www.bernlieb.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, Judith Cruz, 
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 
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