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/raid1/www/Hosts/bankrupt/CAR_Public/031015.mbx C L A S S A C T I O N R E P O R T E R Wednesday, October 15, 2003, Vol. 5, No. 203 Headlines ALLAIRE CORPORATION: Reaches Settlement For MA Securities Suit APARTHEID LITIGATION: No Claims Made Against Alexander Forbes CAMPBELL SOUP: Settles For $35M Securities Fraud Suit in NJ CHARDONNAY GOLF: Members Commence Lawsuit Over Golf Course Sale ELECTRO SCIENTIFIC: Court Orders Securities Suits Consolidated IMCLONE SYSTEMS: SEC Commences Amended Securities Fraud Lawsuit ELECTRO SCIENTIFIC: Plaintiffs File Consolidated Derivative Suit HALIFAX BUILDING: British Expats Launch Suit Over 1997 Flotation HOLOCAUST LITIGATION: Swiss Banks To Give Limited Access To Info IBM CORPORATION: Jury Selection Starts in Workers' Lawsuit Trial JI CASE: MI Court to Decide on Retirees' Monthly Health Premiums MYLAN LABORATORIES: MA Court Recalls Order Dismissing AWP Suit NEW HAMPSHIRE: Dover City Votes To Join Suit v. MTBE Producers NORTH CAROLINA: Embezzlement Suit Considered V. Insurance Agent QUE INC.: Faces Models' Suit For Antitrust Violations in S.D. NY SALVATION ARMY: Group Suspicious Towards Head of Sex Abuse Probe TENNESSEE: Source Of Hepatitis A Outbreak Traced To Green Onions TRANSFINANCIAL HOLDINGS: Asks KS Court To Dismiss Part of Suit UST LIQUIDATING: Trial in Suit V. Veeder-Root Sale Set May 2004 ZALE CORPORATION: Preliminary Approval Given to Suit Settlement ZALE CORPORATION: CA Court Grants Final Approval to Settlement Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals * Online Teleconferences New Securities Fraud Cases ALSTOM SA: Holzer Holzer Lodges Securities Fraud Suit in S.D. NY CHECK POINT: Holzer Holzer Commences Securities Suit in S.D. NY EMERSON RADIO: Ademi O'Reilly Commences Securities Suit in NJ MIDWAY GAMES: Federman & Sherwood Lodges Stock Suit in S.D. NY MIDWAY GAMES: Lasky & Rifkind Lodges Securities Suit in S.D. NY POLAROID CORPORATION: Shapiro Haber Lodges Stock Lawsuit in MA POLAROID CORPORATION: Milberg Weiss Lodges Securities Suit in NY POLAROID CORPORATION: Holzer Holzer Lodge Stock Suit in S.D. NY SPORTSLINE.COM: Brodsky & Smith Files Securities Suit in S.D. FL STRONG FINANCIAL: Ademi O'Reilly Launches Securities Suit in WI ********* ALLAIRE CORPORATION: Reaches Settlement For MA Securities Suit -------------------------------------------------------------- Fairness hearing for the settlement of the securities class action filed on behalf of all purchasers of Allaire Corporation common stock (Nasdaq:ALLR) between December 7, 1999 and September 18, 2000, inclusive, is set for December 1,2003 in the United States District Court for Massachusetts. Pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the court, a hearing will be held before the Honorable William G. Young, United States District Judge on December 1, 2003 at 2:00 p.m. in Courtroom 18 of the United States Courthouse, One Courthouse Way, Boston, Massachusetts 02210, to determine whether: (1) a class should be finally certified for settlement purposes; (2) a proposed settlement of the Action for $12,026,000, plus interest, is fair, reasonable and adequate and should be approved by the Court; (3) an Order and Final Judgment should be entered dismissing all claims against the Defendants with prejudice, and without costs; (4) a proposed Plan of Allocation of the settlement fund should be approved; and (5) to award attorneys' fees and expenses requested by Plaintiffs' Counsel. For more information, contact Dennis Johnson of Johnson & Perkinson by Mail: 1690 Williston Road, South Burlington, VT 05403 by Phone: (802) 862-0030 or contact Brad Friedman of Milberg Weiss Bershad Hynes & Lerach LLP by Mail: One Pennsylvania Plaza, New York, NY 10119 by Phone: (212) 594-5300 or contact Michael Jaffe of Wolf Haldenstein Adler Freeman & Herz LLP by Mail: 270 Madison Avenue, New York, NY 10016 or by Phone: (212) 545-4600. APARTHEID LITIGATION: No Claims Made Against Alexander Forbes ------------------------------------------------------------- Financial services firm Alexander Forbes said they have no knowledge of any claims made against it over alleged fraud during the apartheid era, the Mail and Guardian reports. An earlier Agence France-Presse report stated that flamboyant American lawyer Ed Fagan plans to file a new class action in New York State Court over companies that allegedly defrauded South African workers during the apartheid era. The suit intends to name the firm, Union Carbide and the Dow Chemical Company as defendants, and will be allegedly filed on behalf of workers who deposited money into pension, health, life, unemployment and retirement funds and never received a cent back from these companies, an earlier Class Action Reporter story (October 14,2003) states. The Company received a communication regarding this suit yesterday. In a statement, the Company revealed that the communication demanded information from them relating to an unspecific potential claim against various parties. "No claim for payment of any amount has been made against Alexander Forbes," the company said in a statement. Lawyer for the claimants John Ngcebetsha told AFP that the lawsuit was a "new claim" and was not related to the claims for apartheid victims earlier filed by Ed Fagan. Mr. Fagan was also the lawyer who successfully led a lawsuit against Swiss banks on behalf of Holocaust victims. Mr. Fagan has also filed or announced plans to file other suits against Swiss and US banks, pharmaceutical conglomerates, car manufacturers, food giant Nestl‚ and mining companies De Beers and Anglo American, among others, on the grounds that they allegedly benefited under the apartheid regime, the Mail and Guardian reports. CAMPBELL SOUP: Settles For $35M Securities Fraud Suit in NJ ----------------------------------------------------------- Campbell Soup Co. settled for $35 million the consolidated securities class action filed against it and two of its former executives in the United States District Court for the District of New Jersey. The suit alleges, among other things, that the company and the former executives misrepresented the company's financial condition between September 8, 1997 and January 8, 1999, by failing to disclose alleged shipping and revenue recognition practices in connection with the sale of certain company products at the end of the company's fiscal quarters in violation of Section 10 (b) and 20 (a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. On February 6, 2003, the company announced it had reached an agreement in principle to settle this case. The district court's order approving the settlement was issued on May 22, 2003 and became effective June 23, 2003. Pursuant to the court's order, all claims have been dismissed and the litigation has been terminated in exchange for a payment of $35 million, which was made in June 2003. The full amount of the payment was covered by insurance. The settlement does not constitute an admission of fault or liability by the company or any other defendant. CHARDONNAY GOLF: Members Commence Lawsuit Over Golf Course Sale --------------------------------------------------------------- The Chardonnay Golf Club faces a class action filed by more than 50 of its high-paying members in the Napa Superior Court in California, after the club started rebuilding its 18-hole Club Shakespeare course, the NapaNet Daily News reports. Members filed the suit after the Club sold the golf course to a Japanese company to make way for the construction of a new course called Eagle Vines. The course is currently being built alongside the club and is scheduled to open in May 2004. The members claimed that their memberships in the south county club pay for continuing use of the course. In 1989, the club sold membership packages, stating that members are entitled to the use of Club Shakespeare, which has since then scaled down its facilities to include three nine-hole courses. The members alleged the club breached its contract with them and seek the restoration of their rights to use the golf course. "We joined under the condition that the Shakespeare course would be our private, 18-hole course," Seifo Togo, who said he paid more than $30,000 for a 30-year membership at the club and also pays monthly dues told NapaNet Daily News. "We paid good money for it and we feel we should have had a say when (the club) sold the holes." The club allegedly also failed to inform members at least one year ahead of the sale of the holes, a provision stated in the agreement. A copy of a membership agreement the club submitted in court papers states Chardonnay "reserves the right to discontinue operation of any or all the club facilities to sell, lease, or otherwise dispose of the club facilities in any manner." Jack Barry, the CEO, president and managing partner of the Chardonnay Golf Club, along with his San Francisco-based lawyer, Douglas Drayton, refused to comment on litigation, NapaNet Daily News reports. Several club members and their Napa-based attorney, Michael Murphy, said they would not comment on the case at this juncture. ELECTRO SCIENTIFIC: Court Orders Securities Suits Consolidated -------------------------------------------------------------- The United States District Court for the District of Oregon ordered plaintiffs to file an amended consolidated securities class action against Electro Scientific Industries, Inc. and current and/or former officers and directors: (1) David F. Bolender, (2) James T. Dooley, and (3) Joseph L. Reinhart Several complaints were filed on behalf of a purported class of persons who purchased the Company's common stock between September 17, 2002 and at the latest April 15, 2003. The complaints assert causes of action (and seek unspecified damages) for alleged violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, as well as Section 20(a) of the Act. In particular, the complaints allege that the defendants were involved in making false and misleading statements during the putative class period about ESI's business, prospects, and operations, all of which resulted in artificially inflating ESI's stock price. The complaints have been consolidated under the name "In re Electro Scientific Industries, Inc. Securities Litigation, Case No. CV 03-404-HA." Lead plaintiffs and lead counsel for plaintiffs have been appointed. Plaintiffs' consolidated class action complaint is due to be filed on October 10, 2003. The consolidated class action complaint had not been filed and discovery had not yet commenced when this report was filed. The Company is in the early stages of its assessment of the possible outcomes of this litigation. The Company expects, however, that the litigation will be costly and will to some degree divert management's attention from daily operations. IMCLONE SYSTEMS: SEC Commences Amended Securities Fraud Lawsuit --------------------------------------------------------------- The Securities and Exchange Commission filed a second amended complaint against ImClone Systems, Inc., naming relatives of former CEO Samuel Waksal as defendants. The suit named Jack Waksal, Samuel Waksal's father, as a defendant and Patti Waksal, Samuel Waksal's sister, as a relief defendant. The Commission charges, among other things, that in late December 2001, Sam Waksal, the then CEO of ImClone Systems, Inc. (IMCL), tipped his father, Jack Waksal, with the disappointing news about ImClone, that the United States Food and Drug Administration (FDA) was expected to soon issue a decision rejecting for review ImClone's pending application to market its cancer treatment, Erbitux. Before this news became public, Jack Waksal sold his own ImClone stock and ImClone stock owned by Patti Waksal, who is Jack Waksal's daughter and Sam Waksal's sister. The Commission's second amended complaint alleges that both Sam Waksal and Jack Waksal violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder and that Sam Waksal also violated Section 16(a) of the Exchange Act and Rule 16a-3 thereunder. Specifically, the Commission's complaint alleges as follows: (1) On the evening of December 26, 2001, Sam Waksal learned that on December 28, 2001, the FDA was expected to issue a Refusal to File (RTF) letter to ImClone rejecting consideration of its Biologics Licensing Application for Erbitux; (2) Also starting that evening, December 26, and through December 28, Sam Waksal himself tried to sell 79,797 shares of ImClone stock worth nearly $5 million. He was unable to do so only because two different broker- dealers would not execute his orders; (3) On the evening of December 26, Sam Waksal called Jack Waksal to alert him that ImClone would be receiving the bad news about the RTF letter; (4) Before the market opened the next morning, December 27, Sam Waksal called his daughter Aliza and directed her to sell all of her ImClone stock. Sam Waksal was Aliza's sole means of support and controlled her bank and brokerage accounts; (5) As soon as the market opened the next morning, December 27, Jack Waksal sold almost $7 million of ImClone stock. Jack Waksal continued to sell ImClone stock on December 28 and also sold ImClone stock in Patti Waksal's account. In total, Jack Waksal sold more than $8 million of ImClone stock over the next two days; (6) On December 28, Sam Waksal purchased 210 ImClone put option contracts through a Swiss brokerage account; (7) As expected, the FDA faxed ImClone the RTF letter at about 4 pm on December 28, 2001. At 6 pm that day, ImClone publicly announced the FDA decision. By the close of trading on December 31, the next trading day, ImClone's stock price had dropped 16%, from $55.25 to $46.46; (8) By selling before the announcement that ImClone had received an RTF letter from the FDA, Sam Waksal, Jack Waksal and Patti Waksal illegally avoided trading losses and Sam Waksal received illegal options trading profits; (9) Sam Waksal failed to file the required documents disclosing his purchase of ImClone put option contracts on December 28. The Commission originally filed insider-trading charges against Sam Waksal on June 12, 2002, in the US District Court for the Southern District of New York. On March 11, 2003, the Commission filed an amended complaint against Sam Waksal charging additional insider trading and failure to publicly disclose securities transactions. At that time, without admitting or denying the related allegations, Sam Waksal consented to the entry of a partial final judgment in the Commission's action concerning his own attempted sale of ImClone stock in late December 2001, his options transactions on December 28, 2001, and the sale of ImClone stock in Aliza's brokerage account. Sam Waksal consented to permanent injunctions from future violations of 17(a) of the Securities Act and Sections 10(b) and 16(a) of the Exchange Act and Rules 10b-5 and 16a-3 thereunder; disgorgement of $804,367 representing the losses avoided by the sales of ImClone stock in Aliza's account, plus prejudgment interest, and Sam Waksal's profits from the options transactions he engaged in on December 28, 2001, plus prejudgment interest; and an officer and director bar. In its second amended complaint the Commission seeks to resolve the remaining issues in the case, including Sam Waksal's and Jack Waksal's liability for Jack Waksal's sales of ImClone stock on December 27 and 28, 2001, and civil penalties concerning the totality of the Commission's allegations against Sam Waksal and Jack Waksal. The suit is styled "SEC v. Samuel D.Waksal and Jack Waksal, Defendants, and Patti Waksal, Relief Defendants, 02-CIV-4407," filed in the United States District Court for the Southern District of New York. (LR-18408) ELECTRO SCIENTIFIC: Plaintiffs File Consolidated Derivative Suit ---------------------------------------------------------------- Plaintiffs filed a consolidated shareholder derivative complaint against Electro Scientific Industries, Inc. (as a nominal defendant) and certain current and/or former of its directors in the Circuit Court of Oregon in Washington County. The complaint, styled In Re Electro Scientific Industries, Inc. Derivative Litigation, Lead Case No. C 031067 CV, alleges that certain defendants breached fiduciary duties to the Company and were unjustly enriched. The complaint seeks an unspecified amount of monetary damages and seeks various equitable remedies, including a constructive trust on the proceeds received by the defendants from trading ESI common stock. As filed, the complaint is derivative in nature and does not seek monetary damages from, or the imposition of equitable remedies on, the Company. A special litigation committee of our board of directors, with the assistance of independent legal counsel, is conducting an investigation relating to the allegations asserted in the complaints and intends to seek a stay of the action pending the completion of the committee's investigation. HALIFAX BUILDING: British Expats Launch Suit Over 1997 Flotation ---------------------------------------------------------------- Halifax Bank of Scotland (HBOS) faces a class action filed in an American court on behalf of British expatriates who were wrongfully denied windfall shares in the 1997 flotation of Halifax Building Society, the Weekly Telegraph reports. The suit alleges "thousands were wrongly deprived of the right to share in the proceeds of a savings institution they were members of" and "were tricked into voting for, or not opposing, conversion." Stephen Alexander, partner of Class Law solicitors, law firm for the plaintiffs, told the Weekly Telegraph, "A US court can award punitive damages as well as compensation. That could triple the possible payout." Brian Hazlehurst of the United Halifax Victims group (Unhav) told the Telegraph the suit was on behalf of members living in the USA at the time. Mr. Hazlehurst estimated the members of the class to be about 12,500 and allege that they are entitled to about GBP54 million in compensation. He added that worldwide, 55,000 expatriates were wrongfully denied at least GBP240 million worth of shares. He told The Telegraph, "This year alone, HBOS also settled out of court with at least 35 other Unhav members. Yet only a handful of claims were settled from 1997 to 2002. And in many cases the Halifax strongly contested cases in the county and small claims courts." Halifax Bank of Scotland (HBOS), successor group to the Halifax, told the Telegraph it would "vigorously" defend the case. An HBOS spokesman said: "We will defend the case vigorously. We believe it is procedurally flawed and without merit. There is no right to take action in the USA as the conversion of the Halifax conformed to UK law." HOLOCAUST LITIGATION: Swiss Banks To Give Limited Access To Info ---------------------------------------------------------------- Swiss banks involved in the global settlement of a class action filed on behalf of Holocaust victims who lost their accounts with banks during the Nazi era agreed to give investigators for the fund limited access to information on millions of accounts, the New York Times reports. Holocaust victims and their relatives filed the class action, styled "In re Holocaust Victim Assets Litigation, case number CV-96-4849," in the US District Court of the Eastern District of New York. The suit sought to recover the money deposited in banks for safekeeping before or during World War II. The plaintiffs alleged that the banks refused to release the money after the war, saying they needed to provide detailed account information or death certificates from Nazi concentration camps, which were impossible to obtain. In 1998, Swiss banks Credit Suisse and UBS signed a global accord between Jewish plaintiff groups and Swiss banks Credit Suisse and UBS. Under the settlement, $800 million will go to those who made the deposits or their heirs. The remaining funds were to compensate Holocaust survivors who had other claims, not related to personal deposits. Earlier, court-appointed Special Master for the fund Judah Gribetz released a report, filed in the United States District Court in Brooklyn, New York, stating that Swiss bank secrecy could deprive victims and their heirs of their fair share in the fund. The report said that $485 million has been distributed so far, but only $131.5 million has gone to those who had deposited the money in Swiss banks or their relatives. "Lack of full access to existing documentation and the unavailability of other data has interfered with the claims process," Mr. Gribetz wrote in the report, according to an earlier Class Action Reporter story (October 10, 2003). Chief lawyer Burt Neuborne disclosed the agreement with the banks in a court filing, saying that the new development could break what court officials have called a frustrating logjam. "It will enable us to find new accounts," the lawyer, Burt Neuborne, told the Times. "And it will enable us to determine if we should continue to press for further access." Mr. Neuborne also said that the agreement was important in determining how successful the settlement would be in returning lost deposits to Holocaust victims. The Swiss banks have so far released information on only 36,000 accounts. However, lawyer for the Swiss banks Roger M. Witten reacted to Mr. Neuborne's comments, saying the banks had merely "cooperatively reached an agreement" to permit specific efforts to match claims against the 4.1 million accounts that they had long ago promised in principle, the New York Times reports. He added the agreement was reached before Mr. Gribetz's report was submitted. He also said Mr. Gribetz was wrong in flatly asserting that the banks had records dealing with 4.1 million Holocaust-era accounts. IBM CORPORATION: Jury Selection Starts in Workers' Lawsuit Trial ---------------------------------------------------------------- Jury selection is scheduled to begin in the first major case that puts the computer manufacturing industry in the spotlight for allegedly concealing knowledge of harmful working conditions in its early clean rooms, the Mercury News reports. The suit, filed by former IBM workers Alida Hernandez and James Moore, who contend they got cancer from systemic chemical poisoning, after being exposed to hazardous chemicals in the disk-drive-manufacturing clean room in the company's Cottle Road Plant in San Jose, is the first of its kind to go to trial. "This is, by far, the largest case of its kind,'' said Ted Smith, executive director of the Silicon Valley Toxics Coalition. "IBM was one of the first companies in this business, so they were, frankly, making a lot of the early mistakes." This case and about 250 other lawsuits filed against IBM, primarily in New York and Vermont, where Big Blue has semiconductor-manufacturing plants, and in Minnesota, will be the first to possibly determine if many of the industry's pioneering researchers and assembly line workers - many of whom had direct contact with hazardous chemicals such as arsenic, Freon, acetone, benzene and others - were guinea pigs for a burgeoning industry. "If you were exposed to something that takes 30 years to fester, you might not have a clue until many years later,'' said Bill Meyer, a co-founder of the Chelsie Group, a San Jose-based worker-safety advocacy group. IBM's cases are the first to go to trial, but they are not the only ones pending against the electronics industry. National Semiconductor of Santa Clara also has been sued by employees who allege they got cancer from working in National's chip-making plants. That case, which was filed 3 « years ago and is now a class action, is in the discovery phase. IBM says it has done nothing wrong, and has argued that the cases should be heard by the Workers Compensation Board. It also stressed that there is no legal or scientific evidence to prove direct causality. Last week, it asked the 6th District Court of Appeal to rule on whether there was enough evidence to try the cases of Ms. Hernandez, who has breast cancer, and Ms. Moore, who has non-Hodgkin's lymphoma. To win the case, the plaintiffs must prove that IBM knew that its workers were suffering from chemical poisoning and concealed that fact from them. "To prove that fraudulent claim, you have to prove the plaintiff has an occupational disease, then you have to prove that the employer knew that he had the occupational disease, and that the employer received a diagnosis of the occupational disease, and that the employer concealed the disease from the employee,'' said Raphael Metzger of the Metzger Law Group in Long Beach. A tall order for the plaintiffs, attorneys said. And already their case has caught a snag. In pre-trial hearings this week, the judge granted IBM's motion to exclude its "corporate mortality file," a database of death records of 30,000 employees over a 30-year period. Earlier the plaintiffs had this document analyzed by Boston University School of Public Health epidemiologist Richard Clapp, who wrote in a declaration that IBM employees were "dying disproportionately of cancer at a much younger age" than the general population. IBM contended that the plaintiffs' use of these records, plus an epidemiologist's analysis of them, does not follow any scientific method. "It doesn't show any relation between chemicals and disease," said IBM spokesman Bill O'Leary. IBM is represented by Jones Day, the firm that represented R.J. Reynolds Tobacco in the smoking-related class actions. The trial is expected to last for at least two months. If IBM loses, it would set a precedent for the other cases filed against it, and could open the floodgates for other similar lawsuits. JI CASE: MI Court to Decide on Retirees' Monthly Health Premiums ---------------------------------------------------------------- The United States District Court in Michigan will decide by October 30 whether to temporary stop JI Case and Case Corporation from collecting the $501 monthly health-insurance premiums from 5,000 of its former retirees and spouses, The Dispatch reports. The United Auto Workers (UAW) filed the class action in October 2002 against the Company and El Paso Corporation. The UAW later withdrew from the suit and the retirees took on the suit. The suit argues that the retirees were guaranteed lifetime, no-cost health-insurance benefits. Retirees, including 600 to 800 in the Quad-Cities, who left the company before July 1994 sued to restore their no-cost insurance for life, which they say the company promised them when they retired. The suit names as defendants El Paso Tennessee Pipeline Co. and Case LLC, which is a wholly owned subsidiary of CNH Global Inc. Since a series of mergers, El Paso Corporation, formerly El Paso Natural Gas of Houston, Texas, is governing the agreement with the retirees. "From all the evidence I've gathered, prior to 1993, there was never any question that this was a lifetime benefit," Roger L. McClow, the retiree's attorney from Southfield, Michigan told the Dispatch. "We're trying to enforce that obligation for the retirees." However, a 1993 agreement between Tenneco and the UAW stated that there would be a cap on retirees' medical premiums and agreed retirees would pay costs beyond that cap, CNH Global spokesman Jeff Walsh told the Dispatch. He declined further comment. Judge Patrick Dugan will decide on a motion for a preliminary injunction to resume full no-cost health insurance temporarily to retirees while the lawsuit goes through the courts. If the injunction is rejected, retirees can expect to continue rising premium costs as the lawsuit proceeds. Local retirees told the Dispatch they just learned their premiums will jump to $561 a month on January 1. MYLAN LABORATORIES: MA Court Recalls Order Dismissing AWP Suit -------------------------------------------------------------- The United States District Court in Boston, Massachusetts unexpectedly recalled an order dismissing the class action filed against Mylan Laboratories, Inc. a week after it granted the motion, the Pittsburgh Business News reports. The suit charges the Company and other pharmaceutical firms with improperly reporting "average wholesale price" information about generic drugs, leading agencies to overpay for the medicines. The Company contended that the plaintiffs failed to show any specific wrongdoing on its part and asked for the suit's dismissal. The judge agreed and dismissed the suit last week. The judge pulled her order this week, apparently due to a scheduling conflict, the Company told the Business News. "It appears as if this action was taken by the judge on her own initiative because she became aware of a scheduling inconsistency relating to one of her previous orders," Mylan's vice chairman and chief executive officer, Robert Coury, told the Business News. He added that as far as Mylan is aware, no party to the lawsuit has objected to the order dismissing the company from the case or asked the judge to reconsider her order. "We are hopeful," Mr. Coury said, "that we will be in the same place when the scheduling issue is resolved." NEW HAMPSHIRE: Dover City Votes To Join Suit v. MTBE Producers -------------------------------------------------------------- The city of Dover, New Hampshire agreed to join a class action against manufacturers of methyl tertiary butyl ether (MTBE), which caused the city's Church Street wells to be closed off in the early 1990s, the Town Online reports. The Church street wells provided drinking water for 60 to 65 residents in the Town Square, Karl Warnick, town water operator and superintendent of buildings, told the Town Online. When the wells were closed, those residents lost their water source, causing the town to build a 12-inch line down Springdale Avenue. For ten years, the city also purchased water from Springdale Farms Water Supply Trust, before the Dover Water Co. started supplying the square's drinking water. Last week, selectmen decided to join the suit. There will be no cost for the town for this suit since the lawyers would be paid from the proceeds, Town Administrator David Ramsay told Town Online. The lawsuit "would also protect us against any upcoming problems," he said. Board Chairman Tobe Deutschmann told Town Online he saw no drawbacks to joining the action other than a dislike for damage lawsuits. "We have real damages here in Dover. I think we would be amiss if we did not attempt to recover any losses," he said. "A lot of damage suits were not on merit, but this one has one because we lost our well." NORTH CAROLINA: Embezzlement Suit Considered V. Insurance Agent --------------------------------------------------------------- Lawyers are considering a class action against businessman Anthony Wayne Allen of Fayetteville, North Carolina, who was charged Monday with embezzlement by an insurance agent, Fayetteville Online reports. Mr. Allen was arrested after six people sued him, alleging the money they invested with him, amounting to a total of about $2 million, was lost or unaccounted for. Two of the suits also named Calvin Deans, identified as an account supervisor who worked for Mr. Allen, as defendant. Mr. Allen is the publisher of a local edition of Fifty Plus magazine, which is aimed at retirees, and is the the chief executive officer of Client Relations, an estate-planning firm. He also owns the A.W. Allen Insurance Group, Inc., which he formed two weeks after he voluntarily surrendered his insurance license. In a hearing in North Carolina Superior Court, Judge Jack Hooks issued a preliminary injunction against him, which forbid Mr. Allen from investing any money on behalf of his clients and from destroying any related documents. Ronnie Mitchell, a lawyer representing four of the plaintiffs, told Fayetteville Online the injunction applies to money and documents relating to all of Mr. Allen's clients, not just those named in the lawsuits that have already been filed. Mr. Allen was accompanied by lawmen to the Cumberland County Law Enforcement Center on Monday night. Bail was set at $1 million. Walking to the jail from the sheriff's office, Mr. Allen did not respond to questions. Mr. Mitchell also stated that the District Attorney's Office, the U.S. Attorney's Office, the US Securities and Exchange Commission and the State Bureau of Investigation are investigating. In an October 8 letter, an SEC lawyer told Mr. Allen that the agency was beginning an "informal, nonpublic inquiry" into Client Relations. The letter asks Allen to provide the SEC with documents and correspondence "on a voluntary basis." "This matter is a fact-finding inquiry," the letter says, Fayetteville Online reports. "The staff is trying to determine whether there have been any violations of the federal securities laws." QUE INC.: Faces Models' Suit For Antitrust Violations in S.D. NY ---------------------------------------------------------------- Que, Inc. faces a class action, styled "Amanda Masters, et al v. Wilhelmina Model Agency, et al, Case No. 02-CV-4911 (HB)," filed in the United States District Court, Southern District of New York. The Plaintiffs seek to maintain this as a class action under Rule 23 of the Federal Rules of Civil Procedure. The plaintiffs allege a per se restraint of trade or commerce in violation of the Sherman Antitrust Act, forfeiture and disgorgement of all fees paid to defendants received as a result of its alleged wrongful conduct, punitive and exemplary damages and accounting of all costs and expenses, pre-judgment and post-judgment interest, reasonable attorneys fees and costs and such other relief as the Court deems appropriate. The Company was served with a Summons and Amended Complaint and has filed a Motion for Summary Judgment that is currently pending. At this stage of the litigation, the Company cannot estimate the range of the potential loss, if any, in the event it is unsuccessful in the defense of this action. SALVATION ARMY: Group Suspicious Towards Head of Sex Abuse Probe ---------------------------------------------------------------- The Salvation Army Abuse Survivors, a group planning to sue the Salvation Army for sexual abuse, have refused to deal with the religious charity's independent watchdog, claiming a "conflict of interest," stuff.co.nz reports. The Salvation Army has commissioned an inquiry into charges of sexual abuse, allegedly to have taken place at its former children's home. The charity appointed former Children's Commissioner Roger McClay to be the investigation's independent monitor. However, Salvation Army Abuse Survivors spokeswoman Jan Lowe told stuff.co.nz that Mr. McClay faced a conflict of interest as he was working for the Salvation Army, yet expected to make impartial and independent judgments on its inquiry. "We are mistrustful of having any dealings with him because he's perceived by people in the group as being part of the Salvation Army team," Ms Lowe said. Mr. McClay told stuff.co.nz he was surprised by the group's attitude and that his employer will not influence his decisions. His pay rate had not yet been finalized. "For five-and-a-half years I was paid by the Government (as Children's Commissioner) and when I needed to I told them where to get off," he said. Salvation Army spokesman Alistair Herring told stuff.co.nz Mr. McClay was appointed because of his "faultless credibility". "Payment does not in any way mean his independence is being compromised and it would be a judgment on his integrity to suggest that," Mr. Herring said. TENNESSEE: Source Of Hepatitis A Outbreak Traced To Green Onions ---------------------------------------------------------------- Green onions at an O'Charley's restaurant in west Knoxville, Tennessee, appear to be the source of the Hepatitis A outbreak that infected 70 people last month, the Associated Press Newswires reports. A preliminary report released recently by the Knox County Health Department and the Atlanta-based Centers for Disease Control and Prevention also said there was no definitive link in the Knoxville cases with the more than 140 others in Georgia and North Carolina. Investigators initially thought an infected food handler and poor hygiene at the west Knoxville restaurant passed the virus. County health director Mark Jones has cautioned that possibility should not be ruled out, although the outbreak seems to be linked to the green onions. A handful of multimillion dollar lawsuits have been filed in Knox County Circuit Court against the O'Charley's restaurant chain, including a proposed class action. The CDC and officials with the Food and Drug Administration are continuing their investigation and said it may be several weeks before a final report is issued. Dr. Rose DeVasia, a CDC epidemiologist assigned to Tennessee, said that the restaurant's employees were not at fault for the infection, since green onions are multi-layered and difficult to wash. "I think that they (the employees) did everything they could," added Dr. DeVasia. The 70 people including, seven O'Charley's employees, became ill in September after eating at the restaurant in August. "While we are confident that we did everything we could do to prevent illness in people exposed to the cases in September, we cannot be complacent and assume that there will be no further spread in the community," said Dr. Stephanie Hall of the Knox County Health Department. Symptoms of Hepatitis A, a nonfatal infection, are mild fever, loss of appetite, nausea, vomiting, diarrhea, dark urine and jaundice, usually appearing two to six weeks after exposure. The proposed consumers' class action on behalf of Jacques Tinus VanNiekirk against O'Charley's Inc. was filed in the Knox County Circuit Court of the Eastern District of Tennessee. Plaintiff in this action is represented by Paul T. Gillenwater of Gillenwater Nichol & Associates. TRANSFINANCIAL HOLDINGS: Asks KS Court To Dismiss Part of Suit -------------------------------------------------------------- Transfinancial Holdings, Inc. asked the United States District Court in Kansas to dismiss the class action filed against it and its directors. The suit was initially filed in Delaware Chancery Court for Newcastle County on January 12, 2000, seeking declaratory, injunctive and other relief relating to a proposed management buyout of the Company. The suit alleged that the directors of the Company: (1) failed to seek bidders for the Company's subsidiary, Crouse, (2) failed to seek bidders for its subsidiary, UPAC, (3) failed to actively solicit offers for the Company, (4) imposed arbitrary time constraints on those making offers and (5) favored a management buyout group's proposal and failed to obtain approval of the Company's shareholders for the sale of certain Crouse assets. The suit sought certification as a class action. The proposed management buyout was terminated on February 18, 2000. The plaintiff filed an amended class action on August 9, 2000, seeking damages in excess of $4.50 per share for the alleged breaches of fiduciary duties. A motion to dismiss a second amended complaint was filed. The lawsuit was dismissed on or about November 1, 2002 with stipulation that it could be re- filed in the United States District Court, District of Kansas, in Kansas City, Kansas. On February 28, 2003, the lawsuit was re-filed in the United State District Court, District of Kansas in Kansas City, Kansas. The Company has filed a motion to dismiss a portion of this lawsuit and intends of vigorously defend. Directors who are defendants in this case are entitled to indemnity from the Company. The Company believes this suit will not have a material adverse effect on the financial condition, liquidity or results of operations of the Company. UST LIQUIDATING: Trial in Suit V. Veeder-Root Sale Set May 2004 --------------------------------------------------------------- Trial in the class action filed against UST Liquidating Corporation and certain other parties on behalf of certain common shareholders of the Company is set for May 2004 in California State Court. The suit alleges that the Company and other parties breached their fiduciary duty to the Company's s common shareholders in connection with the Veeder-Root sale. The plaintiffs also filed a derivative claim alleging corporate waste. In August 2000, the plaintiffs filed a motion for a preliminary injunction, which was denied in a court hearing held on September 18, 2000. The Company and certain other parties subsequently filed a demurrer to plaintiffs' complaint contending that plaintiffs failed to state a valid cause of action, which was granted in October 2000. The plaintiffs filed a notice of appeal regarding the demurrer and voluntarily dismissed the derivative claim alleging corporate waste. The briefing on the appeal was completed and an oral argument was heard before the California Court of Appeals on October 26, 2001. On November 21, 2001, the California Court of Appeals reversed the trial court with respect to the demurrer and ruled that the plaintiffs could assert a personal, non-derivative claim. The case is currently in the discovery phase. The Company intends to continue to contest the case; however, it is too early at this time to determine the ultimate outcome of this matter and the extent of the Company's exposure. ZALE CORPORATION: Preliminary Approval Given to Suit Settlement --------------------------------------------------------------- Preliminary approval has been granted to the settlement proposed by Zale Corporation to two class actions filed against it in Alabama and Texas courts. On November 3, 1999, a plaintiff amended a complaint filed in the Circuit Court for Colbert County, State of Alabama to commence a class action against the Company and: (1) Jewelers National Bank, (2) Zale Indemnity Company, (3) Zale Life Insurance Company, (4) Jewelers Financial Services, (5) Jewel Re-Insurance, Ltd. and (6) certain employees of the Company On July 21, 2000, the same plaintiff commenced a purported class action in the United States District Court for the Eastern District of Texas, Texarkana Division against the Company and: (i) Jewelers National Bank, (ii) Zale Indemnity Company, (iii) Zale Life Insurance Company, (iv) Jewel Re-Insurance, Ltd. and (v) certain employees of the Company Both purported class actions concern allegations that the defendants marketed credit insurance to customers in violation of state statutory and common laws and federal anti-racketeering laws. During the first quarter of fiscal year 2003, the Company reached an agreement with counsel for the plaintiff to settle the actions. Final approval is expected to occur in late November 2003. ZALE CORPORATION: CA Court Grants Final Approval to Settlement -------------------------------------------------------------- The Superior Court of California, County of Los Angeles granted final approval to the settlement of a class action filed against Zale Corporation and Zale Delaware, Inc. on behalf of current and former salaried store managers and assistant store managers of the Company in California. The complaint alleges that these individuals were entitled to overtime pay and should not have been classified as exempt employees under California law. During the third quarter of fiscal year 2003, the Company reached an agreement with counsel for the plaintiff to settle the action. Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals ------------------------------------------------- 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 6-7, 2003 WHITE COLLAR FRAUD, INDUSTRIAL INJURIES, PHARMACEUTICALS & NURSING HOMES 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 November 19-20, 2003 LITIGATION AND RESOLUTION OF CLASS ACTIONS Glasser Legal Works New York City Contact: mbaron@glasserlegalworks.com; 800-308-1700x111 December 3-4, 2003 LITIGATION AND RESOLUTION OF CLASS ACTIONS Glasser Legal Works San Francisco Contact: mbaron@glasserlegalworks.com; 800-308-1700x111 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 8-9, 2003 D&O LIABILITY INSURANCE American Conference Institute San Francisco Contact: 1-888-224-2480; http://www.americanconference.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, 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 December 11-13, 2003 EMERGING SECURITIES LITIGATION CONFERENCE Mealey Publications The Westin Kierland Resort & Spa, Scottsdale 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 14-16, 2003 DRUG AND MEDICAL DEVICE LITIGATION American Conference Institute The Plaza Hotel, New York City Contact: 1-888-224-2480; http://www.americanconference.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 January 26-27, 2004 WATER CONTAMINATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel, Pasadena CA Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com January 29, 2004 OBESITY CLAIMS American Conference Institute Washington Contact: 1-888-224-2480; http://www.americanconference.com January 29-30, 2004 TOP 10 INSURANCE ISSUES CONFERENCE Mealey Publications The Philadephia Marriott, PA Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com February 02, 2004 EMPLOYMENT PRACTICES LIABILITY INSURANCE American Conference Institute New York City Contact: 1-888-224-2480; http://www.americanconference.com February 12, 2004 BAYCOL LITIGATION CONFERENCE Mealey Publications The Four Seasons Hotel, Houston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com February 13, 2004 PPA LITIGATION CONFERENCE Mealey Publications The Four Seasons Hotel, Houston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com February 23-24, 2004 ASBESTOS LITIGATION 101 Mealey Publications The Westin, Philadephia Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com February 23-24, 2004 FUNDAMENTALS OF REINSURANCE Mealey Publications The Ritz-Carlton Boston Common, Boston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com 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 TBA FASTFOOD INDUSTRY LIABILITY CONFERENCE Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com * Online Teleconferences ------------------------ October 06-30, 2003 DAMAGES IN TEXAS INSURANCE LITIGATION: EVALUATING, PLEADING, AND PROVING CLEOnline.Com Contact: 512-778-5665; info@cleonline.com October 06-30, 2003 NBI PRESENTS "EMERGING ISSUES IN CALIFORNIA INDOOR AIR QUALITY AND TOXIC MOLD LITIGATION CLEOnline.Com Contact: 512-778-5665; info@cleonline.com October 06-30, 2003 NBI PRESENTS "LITIGATING THE CLASS ACTION LAWSUIT IN FLORIDA CLEOnline.Com Contact: 512-778-5665; info@cleonline.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 ALSTOM SA: Holzer Holzer Lodges Securities Fraud Suit in S.D. NY ---------------------------------------------------------------- Holzer Holzer & Cannon, LLC initiated today a securities class action in the United States District Court for the Southern District of New York on behalf of all purchasers of the American Depositary Receipts (ADRs) of Alstom SA (NYSE:ALS) between May 26, 1999 and June 29, 2003, inclusive who purchased such shares on the New York Stock Exchange; and all purchasers of the securities of Alstom between May 26, 1999 and June 29, 2003, inclusive who live in the United States and who were damaged thereby. 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. Throughout the class period, as alleged in the complaint, defendants issued numerous positive statements concerning the growth and financial performance of its transportation subsidiary. The complaint alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company had failed to recognize costs incurred in a rolling-stock supply railcar contract at its transportation unit in anticipation of shifting the costs to other contracts; (2) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (3) that as a result of the foregoing, the value of the Company's losses was materially understated at all relevant times and the value of the Company's margins was materially overstated at all relevant times. The complaint alleges that on June 30, 2003, before the US market opened for trading, Alstom announced that it is "conducting an internal review assisted by external accountants and lawyers following receipt of letters earlier this month alleging accounting improprieties on a railcar contract being executed at the Hornell, New York facility of ALSTOM Transportation Inc. (ATI), a US subsidiary of the Company." As part of the review, the complaint alleges, the Company "identified that losses have been significantly understated in ATI's accounts, in substantial part due to accounting improprieties by the understatement of actual costs incurred, including by the non-recognition of costs incurred in anticipation of shifting them to other contracts, and by the understatement of forecast costs to completion." As a result, the Company announced that it would record an additional net after tax charge of 51 million euros ($58 million) for the year ended March 31, 2003. For more details, contact Michael I. Fistel, Jr. by Mail: Holzer Holzer & Cannon, LLC; 1117 Perimeter Center West, Suite E-107, Atlanta, Georgia 30338 by Phone: (888) 508-6832 or by E-mail: mfistel@holzerlaw.com. CHECK POINT: Holzer Holzer Commences Securities Suit in S.D. NY --------------------------------------------------------------- Holzer Holzer & Cannon, LLC initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of Check Point Software Technologies Ltd. (Nasdaq:CHKP) publicly traded securities during the period between July 10, 2001 and April 4, 2002, inclusive. The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Throughout the class period, as alleged in the complaint, defendants issued numerous statements concerning Check Point's revenue growth, product and marketing initiatives, and increasing revenues and profits while failing to disclose that demand for the Company's products was materially declining. The complaint alleges that when this information was belatedly disclosed to the market on April 4, 2002, shares of Check Point fell over 24% on extremely heavy trading volume. For more details, contact Michael I. Fistel, Jr. by Mail: 1117 Perimeter Center West, Suite E-107, Atlanta, Georgia 30338 by Phone: (888) 508-6832l by E-mail: mfistel@holzerlaw.com or visit the firm's Website: http://www.holzerlaw.com EMERSON RADIO: Ademi O'Reilly Commences Securities Suit in NJ ------------------------------------------------------------- Ademi & O'Reilly, LLP initiated a securities class action in the United States District Court for the District of New Jersey on behalf of purchasers of Emerson Radio Corporation (AMEX:MSN) publicly traded securities during the period between January 29, 2003 and August 12, 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 growth and demand for the Company's products. As alleged in the complaint, these statements were each materially false and misleading when made as they misrepresented and omitted the following adverse facts which then existed and disclosure of which was necessary to make the statements not false and misleading, including, but not limited to, the following: (1) that Emerson customers were deferring and foregoing purchases of product and reducing inventory levels as they shifted to just-in-time stocking; (2) that since at least March 2003, the outbreak of severe acute respiratory syndrome in Asia was dramatically reducing Emerson's product demand and supply; (3) that Emerson was planning to, and did, discontinue Mary-Kate and Ashley and Nascar brands and business; and (4) that based on the foregoing, Emerson had no reasonable basis to project "significant" and "strong" growth and revenues for fiscal 2004. On August 12, 2003, the last day of the Class Period, Emerson shocked the investing public when it released its financial and operational results for the first quarter of fiscal 2004, ended June 30, 2003, announcing, among others, a 44.3% revenue decline in its consumer electronics segment. In response to this announcement, shares of Emerson stock fell more than 49% on August 12, 2003, on heavy trading volume. For more information, contact Guri Ademi by Phone: 1-888-551-9944 or by E-mail: gademi@ademilaw.com. MIDWAY GAMES: Federman & Sherwood Lodges Stock Suit in S.D. NY -------------------------------------------------------------- Federman & Sherwood initiated a securities class action on behalf of shareholders of Midway Games, Inc. (NYSE: MWY) for the class period from December 11, 2001 through July 30, 2003, in the United States District Court for the Southern District of New York. The lawsuit alleges that Midway issued false and misleading representations thereby causing Midway shares to trade at artificially inflated levels. Further, on July 29, 2003, Midway announced that David F. Zucker had succeeded Neil D. Nicastro as Chief Executive Officer and President of Midway Games, Inc., which was a shock to the markets, causing already depressed shares to slide downwards more than 28%, or $0.97 a share, closing at $2.42 on July 20, 2003. For more details, contact William B. Federman by Mail: FEDERMAN & SHERWOOD, 120 N. Robinson, Suite 2720, Oklahoma City, OK 73102 by Phone: (405) 235-1560 by Fax: (405) 239-2112 or by E-mail: wfederman@aol.com MIDWAY GAMES: Lasky & Rifkind Lodges Securities Suit in S.D. NY --------------------------------------------------------------- Lasky & Rifkind, Ltd. initiated a securities class action in the United States District Court for the Northern District of Illinois, on behalf of persons who purchased or otherwise acquired publicly traded securities of Midway Games (NYSE:MWY) between December 11, 2001 to July 30, 2003, inclusive. The lawsuit was filed against Midway and certain officers and directors. The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between December 11, and July 30, 2003. Specifically, the complaint alleges the statements were false and misleading because they failed to disclose and misrepresented the following material adverse facts which were known to the defendants or recklessly disregarded by them: (1) that the Company was experiencing material disruptions in its internal studios such that it would be unable to meet the expected release dates for its major new game titles; (2) that the Company's inability to develop new game titles in a timely manner was negatively impacting its ability to increase revenues and earnings; (3) that the company was experiencing decreased consumer demand for its released products. The class period begins on December 11, 2001, when Midway filed with the SEC, on Form S-3/A, a registration statement containing alleged misrepresentations with respect to the Company's offering of 4.5 million shares of common stock. On July 29, 2003, the Company announced its results for the third quarter ended March 31, 2003. Shocking the market, Midway disclosed it generated a mere $5 million, failing to meet its own guidance estimates of $7 million to $11 million. The revenue decline was attributed to the delay in the release of a number of titles and decreasing consumer demand for its existing titles. The Company also announced that its CEO Neil D. Nicastro was being succeeded by David F. Zucker. In response to the news Midway's shares slid downwards more than 28% or $0.97 per share, to close at $2.42 per share on July 30, 2003. For more details, contact Leigh Lasky by Phone: (800) 321-0476 or visit the firm's Website: http://www.laskyrifkind.com POLAROID CORPORATION: Shapiro Haber Lodges Stock Lawsuit in MA -------------------------------------------------------------- Shapiro Haber & Urmy LLP initiated a securities class action in the United States District Court for the District of Massachusetts on behalf of all persons who purchased the common stock of Polaroid Corporation (Other OTC:PRDCQ.PK) between January 26, 2000 and August 16, 2001, inclusive. The plaintiff in the action is Stephen J. Morgan, a substantial Polaroid shareholder who has been active in working for shareholder interests in the Polaroid bankruptcy proceeding now pending in the United States Bankruptcy Court in Delaware. The defendants in the case are: (1) KPMG LLP, Polaroid's auditors during the class period; (2) Gary T. DiCamillo, Polaroid's Chairman and CEO; (3) Carl L. Lueders, (4) Judith G. Boynton, (5) William K. Flaherty, who formerly served as Vice Presidents and Chief Financial Officer of Polaroid; and (6) Donald M. Halsted, Polaroid's former Vice President and Controller. The Complaint alleges that the defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making numerous materially false and misleading statements during the class period, including statements in quarterly and annual reports filed with the SEC. The Complaint alleges that, as appears from a recent Report issued by an Examiner appointed by the Bankruptcy Court, all the defendants knew or should have known that Polaroid's financial condition was materially worse than the defendants represented to the investing public. The Complaint also alleges that by issuing unqualified audit opinions regarding Polaroid's financial statements and financial condition during the class period and by failing to issue a "going concern" qualification, KPMG violated the Federal securities laws. The suit alleges that as the result of the defendants' statements, the price of Polaroid's common stock was artificially inflated during the class period. For more details, contact Thomas V. Urmy, Jr., Thomas G. Shapiro, Esq. or Alyssa Petroff, paralegal by Mail: 75 State Street, Boston, Massachusetts 02109 by Phone: (800-287-8119), by Fax: 617-439-0134 or by E-mail: cases@shulaw.com. POLAROID CORPORATION: Milberg Weiss Lodges Securities Suit in NY ---------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of Polaroid Corporation (OTC Pink Sheets:PRDCQ) publicly traded securities during the period between January 26, 2000 and August 9, 2001, inclusive. The action, numbered 03 CV 7499, is pending in the United States District Court for the Southern District of New York against defendants: (1) KPMG LLP (KPMG), (2) Polaroid Chairman and CEO Gary DiCamillo, (3) Polaroid CFO Carl Leuders, (4) Polaroid Controller Donald Halsted and (5) Judith G. Boynton, who served as Polaroid's Executive Vice President and Chief Financial Officer from the beginning of the Class Period until January 2001. 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 materially false and misleading statements with respect to Polaroid's financial condition. The Company's auditor, defendant KPMG, also issued unqualified audit opinions regarding the Company's financial statements during the Class Period. As was recently disclosed in a report issued by Perry M. Mandarino, a Court-appointed Examiner in the Polaroid bankruptcy proceeding, defendants' statements issued throughout the Class Period were materially false and misleading because defendants knew or should have known that the Company's financial condition had significantly deteriorated and was much worse than was being represented to the public. For more details, contact Steven G. Schulman, Peter E. Seidman, Andrei V. Rado by Mail: One Pennsylvania Plaza, 49th fl., New York, NY, 10119-0165 by Phone: 800-320-5081 or by E-mail: polaroidcase@milbergNY.com or visit the firm's Website: http://www.milberg.com POLAROID CORPORATION: Holzer Holzer Lodge Stock Suit in S.D. NY --------------------------------------------------------------- Holzer Holzer & Cannon, LLC initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of Polaroid Corporation (Pink Sheets:PRDCQ) publicly traded securities during the period between January 26, 2000 and August 9, 2001, 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 statements and filing quarterly and annual reports with the SEC describing the Company's financial performance. The complaint alleges that the Company's auditor, defendant KPMG, also issued unqualified audit opinions regarding the Company's financial statements during the Class Period. The complaint further alleges that as was recently disclosed in a Report issued by Perry M. Mandarino, the Court-appointed Examiner in the Polaroid bankruptcy proceeding, defendants' statements issued throughout the Class Period were materially false and misleading because defendants knew or should have known that the Company's financial condition had significantly deteriorated and was much more severe than was being represented to the public. For more details, contact Michael I. Fistel, Jr. by Mail: 1117 Perimeter Center West, Suite E-107, Atlanta, Georgia 30338 by Phone: (888) 508-6832 or by E-mail: mfistel@holzerlaw.com SPORTSLINE.COM: Brodsky & Smith Files Securities Suit in S.D. FL ---------------------------------------------------------------- Brodsky & Smith, LLC initiated a securities class action in the United States District Court for the Southern District of Florida on behalf of shareholders who purchased the common stock and other securities of SportsLine.com, Inc. (Nasdaq:SPLN), between May 15, 2001 and September 25, 2003 inclusive. 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 SportsLine.com securities. The Complaint further alleges, among other claims, that SportsLine.com misrepresented or failed to advise investors that the Company's MVP.com store was failing to make a profit. For more details, contact Marc L. Ackerman or Evan J. Smith by Mail: Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by Phone: 877-LEGAL-90 or by E-mail: clients@brodsky-smith.com STRONG FINANCIAL: Ademi O'Reilly Launches Securities Suit in WI --------------------------------------------------------------- Ademi & O'Reilly, LLP initiated a securities class action in the United States District Court for the Eastern District of Wisconsin on September 10, 2003, on behalf of purchasers of the securities of the Strong Funds family of funds owned and operated by Strong Financial Corporation, and its subsidiaries and affiliates, between October 1, 1998 and July 3, 2003, inclusive, seeking to pursue remedies under the Securities Exchange Act of 1934, the Securities Act of 1933 and the Investment Advisers Act of 1940. The Funds, and the symbols for the respective Funds named below, are as follows: (1) Strong Advisor Bond Fund (SVBDX, SADBX, SABCX, SIBNX, F008W1, SBDIX) (2) Strong Advisor Municipal Bond Fund (SAMAX, SMBBX, F00BH8) (3) Strong Advisor Municipal Select Fund (SMUIX, STAEX, F005LZ, F005M9) (4) Strong Advisor Short Duration Bond A Fund (STSDX, SSDKX, SSHCX, STGBX) (5) Strong Advisor Common Stock Fund (SCSAX, SCSKX, STSAX, STCSX) (6) Strong Advisor Endeavor Large Cap Fund (STALX, F008GO) (7) Strong Advisor Focus Fund (F005MO, F005M7, F005LT) (8) Strong Advisor International Core Fund (F008GQ, F008GR, F008GS) (9) Strong Advisor Large Company Core Fund (SLGAX, F00AO2, F00AO3, SLCKX) (10) Strong Advisor Mid-Cap Growth Fund (F005LQ, F005M1, F005LO, SMDCX) (11) Strong Advisor Small Cap Value Fund (SMVAX, SMVBX, SMVCX, SSMVX) (12) Strong Advisor Strategic Income Fund (SASAX, F005L7, SASCX) (13) Strong Advisor Technology Fund (SASCX, F005LM, F005LM) (14) Strong Advisor U.S. Small/Mid Cap Growth Fund (F009D0, F009D1) (15) Strong Advisor U.S. Value (F005M2, F005M5, F005MA, SEQKX, SEQIX) (16) Strong Advisor Utilities and Energy Fund (SUEAX, F00AED, F00AEE, F009D5) (17) Strong All Cap Value Fund (F009D5) (18) Strong Asia Pacific Fund (SASPX) (19) Strong Balanced Fund (STAAX) (20) Strong Blue Chip Fund (SBCHX) (21) Strong Discovery Fund (STDIX) (22) Strong Dividend Income Fund (SDVIX, F008VY) (23) Strong Dow 30 Value Fund (SDOWX) (24) Strong Endeavor Fund (SENDX) (25) Strong Energy Fund (SENGX) (26) Strong Enterprise Fund (SENAX, F04ANX, SENTX, SEPKX) (27) Strong Growth & Income Fund (SGNAX, SGNIX, SGRIX, SGIKX) (28) Strong Growth 20 Fund (SGTWX, SGRTX, SGRAX, F00B67, SGRNX) (29) Strong Growth Fund (SGROX, SGRKX) (30) Strong Index 500 Fund (SINEX) (31) Strong Large Cap Core Fund (SLCRX) (32) Strong Large Cap Growth Fund (STRFX) (33) Strong Large Company Growth Fund (SLGIX, F04ANY) (34) Strong Mid Cap Disciplined Fund (SMCDX) (35) Strong Multi-Cap Value Fund (SMTVX) (36) Strong Opportunity Fund (SOPVX, SOPFX, F00AH2) (37) Strong Overseas Fund (F00B4I, SOVRX) (38) Strong Small Company Value Fund (F009D3) (39) Strong Technology 100 Fund (STEKX) (40) Strong U.S. Emerging Growth Fund (SEMRX) (41) Strong Value Fund (STVAX) (42) Strong Life Stages - Aggressive Portfolio Fund (SAGGX) (43) Strong Life Stages - Conservative Portfolio Fund (SCONX) (44) Strong Life Stages - Moderate Portfolio Fund (SMDPX) (45) Strong Corporate Bond Fund (SCBDX, SCBNX, STCBX) (46) Strong Corporate Income Fund (SCORX) (47) Strong High-Yield Bond Fund (SHBAX, SHYYX, STHYX) (48) Strong Government Securities Fund (SGVDX, F00B66, SGVIX, STVSX) (49) Strong High-Yield Municipal Bond Fund (SHYLX) (50) Strong Intermediate Municipal Bond Fund (SIMBX) (51) Strong Municipal Bond Fund (SXFIX) (52) Strong Minnesota Tax-Free Fund (F00B64, F00B65, F00B63) (53) Strong Wisconsin Tax-Free Fund (F0068K) (54) Strong Short-Term High-Yield Municipal Bond Fund (SSHMX, SSTHX, STHBX) (55) Strong Short-Term Municipal Bond Fund (F00B62, STSMX) (56) Strong Short-Term Income Fund (F00B1K) (57) Strong Short-Term Bond Fund (SSTVX, SSHIX, SSTBX) (58) Strong Ultra Short-Term Income Fund (SADAX, SADIX, STADX) (59) Strong Ultra Short-Term Municipal Income Fund (SMAVX, SMAIX, SMUAX) (60) Strong Florida Municipal Money Market Fund (SLFXX) (61) Strong Heritage Money Fund (SHMXX) (62) Strong Money Market Fund (SMNXX) (63) Strong Municipal Money Market Fund (SXFXX) (64) Strong Tax-Free Money Fund (STMXX) The Complaint alleges that defendants violated Sections 11 and 15 of the Securities Act of 1933; Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder; and Section 206 of the Investment Advisers Act of 1940. The Complaint charges that, throughout the Class Period, defendants failed to disclose that they improperly allowed certain hedge funds, such as Canary, to engage in the "timing" of their transactions in the Funds' securities. Timing is excessive, arbitrage trading undertaken to turn a quick profit. Timing injures ordinary mutual fund investors -- who are not allowed to engage in such practices -- and is acknowledged as an improper practice by the Funds. In return for receiving extra fees from Canary and other favored investors, Strong Financial Corporation and its subsidiaries allowed and facilitated Canary's timing activities, to the detriment of class members, who paid, dollar for dollar, for Canary's improper profits. These practices were undisclosed in the prospectuses of the Funds, which falsely represented that the Funds actively police against timing. For more information, contact Guri Ademi by Phone: 1-888-551-9944 or by E-mail: gademi@ademilaw.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. 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