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/raid1/www/Hosts/bankrupt/CAR_Public/031230.mbx C L A S S A C T I O N R E P O R T E R Tuesday, December 30, 2003, Vol. 5, No. 256 Headlines ALLOY INC.: Striving For Settlement To NY Securities Fraud Suit ALLOY INC.: Plaintiffs File NY Consolidated Stock Fraud Lawsuit AMTRAK DERAILMENT: Indicted NY Man Causes Collision Injuring 4 APARTHEID LITIGATION: Reparation Payments To Victims, Kin Begins APPLE COMPUTER: Law Firm Considers Filing iPod Battery Lawsuit APPLIED DIGITAL: FL Suit Settlement Hearing Set March 19, 2004 CALIFORNIA: Three Killed in Bay Area Medical Helicopter Crash CAREER EDUCATION: More Law Firms Join Securities Fraud Lawsuit CATHOLIC CHURCH: More Ask To Join Covington Sexual Abuse Lawsuit COMDISCO INC.: IL Court Denies Motion To Intervene in Stock Suit CROMPTON CORPORATION: To Ask For Dismissal of 20 Antitrust Suits CYBERGUARD CORPORATION: FL Settlement Hearing Set April 16,2004 dELiA*s INC.: Working Towards Settlement of NY Securities Suit ELECTRONIC DATA: Court Affirms Dismissal Of Severance Plan Suit GLOBAL CROSSING: Execs Working For NY Securities Suit Settlement GLOBAL CROSSING: Execs Working To Settle NY ERISA Fraud Lawsuit HOECHST CELANESE: Court Affirms Dismissal Of PB Plumbing Lawsuit PARAMETRIC TECHNOLOGY: Intends To Ask For MA Lawsuit Dismissal PENNSYLVANIA: Court Orders Web Site For PAP Smear Lawsuit Closed PUTNAM FUNDS: Ohio Wants Larger Role In Mutual Fund Fraud Suit ROCKFORD POWERTRAIN: Court Affirms Ruling On Retiree Lawsuit TENNESSEE VALLEY: Power Surplus Suit Remanded to AL Fed. Court TRANSACTION SYSTEMS: NE Court Dismisses Securities Suit in Part UC DAVIS: Four Women Wrestlers Commence Discrimination Lawsuit VIVENDI UNIVERSAL: Analysts Say SEC Deal Won't End Legal Woes WORLDWIDE XCEED: NY Court Reveals Securities Suit Certification New Securities Fraud Cases DYNACQ HEALTHCARE: Chitwood & Harley Lodges TX Securities Suit DYNACQ HEALTHCARE: Charles Piven Launches Securities Suit in TX DYNACQ HEALTHCARE: Wolf Popper Commences Securities Suit in TX PILGRIM BAXTER: Wolf Popper Launches Securities Suit in PA Court ********* ALLOY INC.: Striving For Settlement To NY Securities Fraud Suit --------------------------------------------------------------- Alloy, Inc. is working on 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) James K. Johnson, Jr., (2) Matthew C. Diamond, (3) BancBoston Robertson Stephens, (4) Volpe Brown Whelan and Company, (5) Dain Rauscher Wessel and (6) Ladenburg Thalmann & Co., Inc. The complaint purportedly was filed on behalf of persons purchasing the Company's common stock between May 14, 1999 and December 6, 2000. The suit alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On April 19, 2002, plaintiff filed an amended complaint against the Company, the individual defendants and the underwriters of the Company's initial public offering. The amended complaint asserts violations of Section 10(b) of the `34 Act and mirrors allegations asserted against scores of other issuers sued by plaintiffs' counsel. Pursuant to an omnibus agreement negotiated with representatives of the plaintiffs' counsel, Mr. Diamond and Mr. Johnson have been dismissed from the litigation without prejudice. In accordance with the Court's case management instructions, the Company joined in a global motion to dismiss the amended complaints, which were filed by the issuers' liaison counsel. By opinion and order dated February 19, 2003, the court denied in part and granted in part the global motion to dismiss. With respect to the Company, the court dismissed the Section 10(b) claim and let the plaintiffs proceed on the Section 11 claim. Accordingly, the remaining claim against the Company will focus solely on whether the registration statement filed in connection with its initial public offering contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statement therein not misleading. Although the Company has not retained a damages expert at this time, the dismissal of the Section 10(b) claim likely will reduce the potential damages that plaintiffs can claim. Management believes that the remaining allegations against us are without merit. The Company has retained Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, PC in connection with this matter. The Company participated in the Court-ordered mediation with the other issuer defendants, the issuers' insurers and plaintiffs to explore whether a global resolution of the claims against the issuers could be reached. To this end, a memorandum of understanding setting forth the proposed terms of a settlement was signed by counsel to several issuers, including the Company's counsel, which is not binding upon the Company. The plaintiffs' counsel later announced that the memorandum of understanding was signed, and that the process of obtaining the approval of all parties to the settlement was underway. The Company is participating in that process. Any definitive settlement, however, will require final approval by the Court after notice to all class members and a fairness hearing. ALLOY INC.: Plaintiffs File NY Consolidated Stock Fraud Lawsuit --------------------------------------------------------------- Plaintiffs filed a consolidated securities class action against Alloy, Inc. in the United States District Court for the Southern District of New York. The suit also names as defendants James K. Johnson, Jr., Matthew C. Diamond and Samuel A. Gradess. The complaint was filed on behalf of persons who purchased the Company's common stock between August 1, 2002 and January 23, 2003. The suit alleges violations of Section 10(b) and Section 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder stemming from a series of allegedly false and misleading statements made by the Company to the market between August 1, 2002 and January 23, 2003. Relying in part on information allegedly obtained from former employees, the Consolidated Complaint alleges, among other things, misrepresentations of the Company's business and financial condition and the results of operations during the period from March 16, 2001 through January 23, 2003, which artificially inflated the price of the Company's stock, including without limitation: (1) improper acceleration of revenue, (2) misrepresentation of expense treatment, (3) failure to properly account for and disclose consignment transactions, and (4) improper deferral of expense recognition The Consolidated Complaint further alleges that during the class period the individual defendants and the Company sold stock and completed acquisitions using the Company's stock. The Company and the individual defendants filed a joint answer to the Consolidated Complaint on September 26, 2003. The individual defendants have retained the law firm of Cahill, Gordon & Reindel in connection with this matter. The Company has retained the law firm of Katten Muchin Zavis Rosenman in connection with this matter. Management believes that the allegations against the Company, Mr. Diamond, Mr. Gradess and Mr. Johnson are without merit and intends to vigorously defend the action. AMTRAK DERAILMENT: Indicted NY Man Causes Collision Injuring 4 --------------------------------------------------------------- An Amtrak passenger train plowed into a car parked on the tracks with its lights off, killing the motorist and injuring four train passengers, the Associated Press reports. Frank Mamroe, 31, drove onto the tracks Tuesday night a short time before he was killed by a train traveling about 75 mph through western New York, Wayne County sheriff's Lt. Richard Tack told AP. The circumstances of the crash remained under investigation, but he said Mr. Mamroe's death appeared to be a suicide. "The driver was just sitting there waiting for the train to come," he said. Mr. Mamroe, who lived in nearby Port Gibson, was indicted in Rochester two weeks ago on third-degree rape and sodomy charges for an attack in June on a girl under age 17, prosecutor Doug Randall told AP. Mr. Tack said Mamroe had called friends to say he "wasn't going to jail." Four of the passengers on the 20-car train, which was carrying about 200 people, were treated for injuries. APARTHEID LITIGATION: Reparation Payments To Victims, Kin Begins ---------------------------------------------------------------- Once-off payments of R30,000 to 22,000 victims of gross human rights abuses named in the truth commission's report have begun, but not without some glitches, the Africa News Services reports. The justice department said of the 9691 payments it processed, banks returned 3847 because supplied account numbers were invalid. The department was trying to contact the beneficiaries to arrange a way of paying them. The truth commission promised reparations to families of victims of murder, and to victims of torture and other human rights crimes committed during the apartheid era. President Thabo Mbeki said this year that government had set aside R571.5 Million, far less than the R3 Billion the commission recommended. Apartheid-victims support group Khulumani told the African News Services the glitches were expected as thousands of victims were unemployed. Khulumani had earlier expressed outrage at the government's decision to implement the payments without consulting the victims of apartheid or the organizations representing them. Khulumani Executive Director Ike Tlholwe said the period between the payments of interim relief of R2000 to R5000 in 2000 and this week's once-off payment was too long, and most of the victims' bank accounts had become dormant. Mr. Tlholwe said victims who approached the support group's offices were being assisted with opening new bank accounts. Khulumani had argued that R30000 was insufficient to help get individuals or communities back on their feet. In October the organization asked government to set aside 1% a year of all taxes paid and impose a wealth tax on companies to compensate apartheid victims adequately. It also said compensation should be calculated on the basis of earnings that the individual would have received at the time of his death, a specific date for payment should be set in law and the Reserve Bank should open and operate trust accounts for minors. President Mbeki rejected the call for a tax on business to fund more extensive reparation. Government also distanced itself from a slew of class actions filed in US courts for billions of dollars in damages from local and foreign firms accused of benefiting from apartheid. Justice Department Director General Vusi Pikoli told the News Services that beneficiaries of more than 5000 deceased apartheid victims would be paid after all interested parties had been given an opportunity to make a representation on who should receive the grant. "The payment of individual reparation grants is an ongoing process, and persons who have been declared victims and have applied will be paid their reparations," he said. Payments will continue until notice is given in the Government Gazette that the President's Fund, from which reparations are made, will cease to exist. APPLE COMPUTER: Law Firm Considers Filing iPod Battery Lawsuit -------------------------------------------------------------- Even though Apple Computer now offers battery replacements for out-of-warranty iPods as part of its AppleCare service, it's an issue that refuses to go away. Now it appears that a San Francisco, California-based law firm is joining in the act, MacCentral reports. iPods were first introduced in October, 2001 and quickly became the item that almost everyone who was playing MP3s on their computer wanted - especially once Apple introduced a Windows- compatible version. Now that Apple's iTunes software and iTunes Music Store works on Windows, demand is higher than ever. However, some owners who have had their iPods for a while have noted that the diminutive device's ability to hold an electrical charge in its tiny lithium-ion polymer battery can diminish over time. The "iPod's Dirty Secret" Web site documents the Neistat Brothers' efforts to alert consumers in New York City about their own problem. In September 2003 the Neistat Brothers defaced iPod posters around Manhattan with messages that read "iPod's unreplaceable battery lasts only 18 months." Apple has since begun to offer a battery replacement program that enables out-of-warranty iPod owners to get their batteries replaced for about $100. Apparently Apple's AppleCare efforts are not enough for the firm of Girard Gibbs & De Bartolomeo LLP. The company has posted a Web page on its site entitled Investigation of Apple's iPod, where the firm indicates that it is "investigating a potential class action against Apple Computer, Inc. on behalf of iPod owners whose batteries have died or lost their ability to hold their charge." The firm encourages users who have experienced such problems to submit their information on a Web-based form on the page. APPLIED DIGITAL: FL Suit Settlement Hearing Set March 19, 2004 -------------------------------------------------------------- The United States District Court for the Southern District of Florida, Ft. Lauderdale Division, announced that a Settlement & Fairness Hearing, for a proposed settlement of $5.6 million, will be held on March 19, 2004 at 9:00 a.m. before the Honorable Kenneth A. Marra, in Courtroom 207A, 701 Clematis Street, West Palm Beach, Florida in regards the securities fraud lawsuit brought against Applied Digital Solutions, on behalf of all persons who purchased or acquired the Company's common stock during the period beginning January 19, 2000 to May 21, 2001, inclusive. For exclusion from the Class, a request must be submitted by February 17, 2004. To share in the distribution of the Settlement fund, a Proof of Claim and Release must be submitted on or before March 15, 2004. For more information, contact Plaintiff's Co-Lead Counsel: David Kessler, or Michael K. Yarnoff, of SCHIFFRIN & BARROWAY, LLP, by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004; Lionel Z. Glancy, of GLANCY & BINKOW, LLP, by Mail: 1801 Avenue of the Stars, suite 311, Los Angeles, CA 90067; or Counsel for the Defendant: Tracy Nichols, of HOLLAND & KNIGHT, LLP, by Mail: 701 Bricknell Ave., Suite 3000, Miami, FL 33131. CALIFORNIA: Three Killed in Bay Area Medical Helicopter Crash ------------------------------------------------------------- Officials with the Federal Aviation Administration (FAA), in a report, said that a medical helicopter crashed Tuesday into a mountain in the Bay Area, killing all three people aboard, the Associated Press reports. The helicopter departed from Santa Rosa and stopped in Ukiah on its way to Willits, a town about 15 miles farther north. After it set off again, the pilot decided to turn back due to poor weather conditions, FAA spokesman Donn Walker told AP. The helicopter crashed in Mendocino County, about 120 miles north of San Francisco, at around 7:30 p.m. The aircraft was destroyed by the impact and resulting fire, Ms. Walker said. The three victims - the pilot and two crew - were employees of Redwood Empire Air Care Helicopter, a Santa Rosa firm that provides air ambulance services in northern California, REACH spokesman Pat McDonald told AP. REACH was notifying the families of the victims Tuesday night and would not release their identities. The crew was on its way to Willits to pick up a patient to bring to a hospital in the San Francisco Bay area. The cause of the crash has not been determined. The National Transportation Safety Board will investigate, Ms. Walker said. CAREER EDUCATION: More Law Firms Join Securities Fraud Lawsuit -------------------------------------------------------------- At least six more law firms have announced shareholder lawsuits against the parent company of the Brooks Institute of Photography following allegations of wrongdoing against former school administrators, Knight-Ridder / Tribune Business News reports. Two firms announced they were suing Career Education Corporation of Hoffman Estates, Illinois, a week after the allegations raised by former Brooks registrar Cam Van Wingerden were published in the News-Press. She claimed school officials tampered with documents to deceive an accrediting agency and inflated enrollment to boost the bottom line - allegations repeated in all the lawsuits. Company representatives would not discuss the latest filings. "We can't comment on pending litigation," spokesman Sean Murphy told the Tribune Business News. But he did say, "Career Education Corp. and the individuals served in the suits will vigorously defend themselves." Those individuals are Chief Executive Officer John "Jack" Larson and Chief Financial Officer Patrick K. Pesch. Mr. Murphy had the same response when the first two almost- identical suits were announced December 11 by the firms Milberg Weiss Bershap Hynes & Lerach LLP and Charles J. Pivens P.A. Shares of the company, which were just shy of an all-time high, dropped 28 percent to close at $39.38 on December 3, the day the allegations appeared. Career Education, which trades as CECO on the Nasdaq, rose 51 cents to $38.50 in quiet Christmas Eve trading. Despite the earlier drop, which took $1.5 billion from the company's market capitalization, Career Education still trades at more than 39 times earnings, a lofty price-to-earnings ratio for most companies. Career Education's share price has risen dramatically in the past six years, almost doubling twice in 2003 alone before the Brooks allegations knocked it down. All eight firms that have announced suits against Career Education have lengthy track records of taking on class-action suits. The six firms that filed in the U.S. District Court for the Northern District of Illinois since Milberg Weiss and Pivens are: (1) Schiffrin & Barroway LLP of Bala Cynwyd, Pennsylvania, announced lawsuit December 11; (2) Cauley Geller Bowman & Rudman LLP of Little Rock, Arkansas, announced December 11; (3) Lasky & Rifkind Ltd. of New York, announced December 15; (4) Much Shelist Freed Denenberg Ament & Rubenstein P.C. of Chicago, announced December 18; (5) Goodkind Labanton Rudoff & Sucharow LLP of New York, announced December 22; and (6) Bull & Lifshitz LLP of New York, announced December 23 CATHOLIC CHURCH: More Ask To Join Covington Sexual Abuse Lawsuit ---------------------------------------------------------------- Seven more people have come forward to say they were sexually abused by Covington Diocese priests as far back as the 1950's, the Cincinnati Enquirer reports. The people, who have not been identified, have asked to be added to a class action suit against the diocese after an original plaintiff settled and made statements that he believed the class action was not the best way to handle the accusations. "By doubling the original number of class representatives, plaintiffs wish to further demonstrate the widespread long-term, continuous and very serious abuse of boys and girls by defendant's agents, which is deserving of class treatment," attorneys Stan Chesley and Bob Steinberg wrote in their latest motion, filed Monday in Boone Circuit Court. This is the first significant court document filed in the case since Senior Judge John Potter of Louisville was appointed Friday to take over the case. Boone Circuit Judge Jay Bamberger, 61, recused himself earlier this month after announcing his retirement. The proposed amended suit contains a number of new accusations. However, several of the priests' names in the new claim have been publicly identified in the past. All have been suspended from the priesthood or are no longer with the diocese. One of the accusations is that a priest who investigated allegations of sexual abuse in the diocese is himself suspended from the priesthood for molesting young boys. One of the alleged victims lives in Ohio, while another is described as a Northern Kentucky attorney. Mr. Chesley told the Enquirer he believes the number of men and women eligible to join the class is greater than 150. He said they were abused by more than 21 priests. The diocese has paid more than $6 million in the last three months to 32 people in out-of-court settlements. The diocese has vigorously fought the class-action certification, and victims who have settled with the church have praised Bishop Roger J. Foys as willing to meet with them. COMDISCO INC.: IL Court Denies Motion To Intervene in Stock Suit ---------------------------------------------------------------- The United States District Court for the Northern District of Illinois denied the lead plaintiff's counsel's motion to intervene in the class action filed against Comdisco, Inc., Nicholas K. Pontikes, and John J. Vosicky, alleging violations of Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934, as amended. Nicholas K. Pontikes is a former chief executive officer and director of Comdisco, Inc.; John J. Vosicky formerly served as a director, executive vice president, and chief financial officer of Comdisco, Inc. The suit is captioned In re: Comdisco Securities Litigation, No. 01-C-2110. In connection with the confirmation process for the Plan for Comdisco, Inc., the lead plaintiff in the consolidated action agreed to dismiss the action with respect to Comdisco, Inc., but maintained all rights, if any, against Mr. Pontikes, Mr. Vosicky, and any person not released from liability by the Plan. This resolution was made effective pursuant to a stipulation and agreed order dated June 13, 2002. The suit was later revised to include claims against only Nicholas K. Pontikes and John J. Vosicky. On December 10, 2002, Mr. Pontikes and Mr. Vosicky filed a motion to dismiss the Amended Complaint. The court denied that motion on March 31, 2003. Since that time, the parties have been engaged in discovery. On October 27, 2003, counsel for the lead plaintiff filed a motion for leave to intervene on behalf of a different individual seeking to serve as the class representative in the litigation. The court denied that motion on November 17, 2003. As yet, no class has been certified in this matter. CROMPTON CORPORATION: To Ask For Dismissal of 20 Antitrust Suits ---------------------------------------------------------------- Crompton Corporation and certain of its subsidiaries intend to ask for the dismissal of twenty putative indirect purchaser class actions filed against them, along with other companies, from October 2002 through December 2002 in state courts in seventeen states and in the District of Columbia. The putative class in each of the actions comprises all persons within each of the applicable states and the District of Columbia who purchased tires other than for resale that were manufactured using rubber processing chemicals sold by the defendants since 1994. The complaints principally allege that the defendants agreed to fix, raise, stabilize and maintain the price of rubber processing chemicals used as part of the tire manufacturing process in violation of state antitrust and consumer protection laws and that this illegal conspiracy caused injury to individuals who paid more to purchase tires as a result of such anticompetitive activities. The plaintiffs seek, among other things, treble damages of an unspecified amount, interest and attorneys' fees and costs. The Company and its defendant subsidiaries have filed or intend to file motions to dismiss on substantive and personal jurisdictional grounds or answers with respect to each of these actions. These actions are in early procedural stages of litigation and, accordingly, the Company cannot predict their outcome. The Company and its defendant subsidiaries believe that they have substantial defenses. CYBERGUARD CORPORATION: FL Settlement Hearing Set April 16,2004 --------------------------------------------------------------- The United States District Court for the Southern District of Florida, Miami Division announced that a Settlement Hearing, for a proposed settlement of $10,000,000, will be held on April 16, 2004 at 2:00 p.m. in Courtroom 10, 301 North Miami Avenue, Miami, Florida, in regards the securities fraud lawsuit brought on behalf of Steven Cheney, and all other persons who purchased or acquired the common stock of Cyberguard Corporation, during the period from November 7, 1996 through August 24, 1998, inclusive, against: (1) Cyberguard Corporation, (2) Robert L. Carberry, (3) William D. Murray, (4) Patrick O. Wheeler, and (5) Shelton James For exclusion from the Class, a request must be submitted by April 2, 2004. To share in the distribution of the Settlement fund, a Proof of Claim and Release must be submitted on or before July 15, 2004. For more information, contact Cyberguard Corporation Securities Litigation, c/o The Garden City Group, Inc., Claims Administrator, by Mail: P.O. Box 9000 #6161, Merrick NY 11566- 9000, or by Phone: (877) 824-5824. dELiA*s INC.: Working Towards Settlement of NY Securities Suit -------------------------------------------------------------- dELiA*s Inc. is working for a settlement of the consolidated securities class action filed in the United States District Court for the Southern District of New York in 1999 against it and certain of its officers and directors. The consolidated complaint alleges, among other things, that the defendants violated Rule 10b-5 under the Securities Exchange Act of 1934 by making material misstatements and by failing to disclose certain allegedly material information regarding trends in the business during part of 1998. The parties have reached an agreement in principle on a settlement of the action. That agreement has not yet been memorialized and will not become effective until a stipulation of settlement is executed by all parties and finally approved by the Court, after notice is given and an opportunity to object and a hearing has been accorded to all interested parties. On December 9, 2002, the Court entered an Order discontinuing the action without prejudice to any party to apply to the Court on five days' notice to restore the action to the trial calendar if the settlement is not consummated within 45 days. By Order dated March 19, 2003, the Court extended the Order of Discontinuance until 30 days following the date on which the pending settlement is approved by the Court. The parties are continuing to negotiate over certain terms and conditions of the settlement, and the settlement papers have not been submitted for Court approval. There can be no assurances that the settlement will be completed. The claim and proposed settlement are covered under dELiA*s' insurance policy. However, if the settlement is not completed, the Company cannot predict the outcome of any litigation. ELECTRONIC DATA: Court Affirms Dismissal Of Severance Plan Suit --------------------------------------------------------------- The United States Court of Appeals, Third Circuit denied Plaintiffs appeal of a ruling by the U.S. District Court for the District of New Jersey, granting Summary Judgment in a lawsuit, brought against Electronic Data Systems (EDS) Corporation, on behalf of Ira Wallin, individually and all others similarly situated, to recover benefits from EDS's Severance Plan under the Employee Retirement and Income Security Act. Mr. Wallin was employed by Electronic Data Systems Corporation in September of 1988. On October 11, 2001, two Company managers telephoned Mr. Wallin to inform him that he was being terminated. The following day, on October 12, 2001, Mr. Wallin received his severance package materials in the mail. Mr. Wallin claims that only then did he learn that the Severance Plan had been amended on October 5, 2001, and that his severance package had been altered. Before the October 2001 amendment, the Plan provided participants with two weeks of Weekly Base Pay in severance benefits per each complete Year of Service, with a maximum of twenty-six weeks of Weekly Base Pay. After it was amended in October 2001, the Plan stipulated that participants with fewer than three Years of Service were to be provided two weeks of Weekly Base Pay in severance. Those participants with three or more Years of Service would be extended four weeks of Weekly Base Pay. Given his tenure at EDS, Mr. Wallin would have received the maximum twenty-six weeks of severance pay before October 2001, but was entitled to four weeks of severance pay under Plan amended in October 2001. Mr. Wallin filed suit against EDS in District Court on November 27, 2001, and filed an amended complaint on March 22, 2002. In his amended complaint, Mr. Wallin alleged breach of the written provisions of the Plan, breach of fiduciary duty, and a claim of equitable estoppel against EDS. On January 23, 2003, the court denied his motion for Leave to File a Second Amended Class Action Complaint and granted EDS's motion for summary judgment. Mr. Wallin appealed this decision. GLOBAL CROSSING: Execs Working For NY Securities Suit Settlement --------------------------------------------------------------- Global Crossing, Ltd.'s current and former officers and directors are working to settle the consolidated securities class action filed against them in the United States District Court for the Southern District of New York, styled "In re Global Crossing Ltd. Securities Litigation." The plaintiffs allege that the defendants committed fraud under the federal securities laws in connection with the Company's financial statements and disclosures and certain other public statements made by Company representatives and seek compensatory damages, costs and expenses, and equitable and other relief. In addition, a number of individual securities cases or other actions based on federal or state law claims and arising out of similar underlying facts have been filed (and in the future, additional cases may be filed) against certain current and former officers, directors, and employees of the Company, seeking damages for alleged violations of federal and state securities laws, breach of fiduciary duties, violations of state whistle-blower statutes, and allegations that certain former employees were improperly restricted from selling stock before its price collapsed. The Company is involved only indirectly in these cases and is not a named defendant. In a disclosure to the Securities and Exchange Commission, the Company denied any liability for the claims asserted in these actions. The Company's former and present officers and directors have been negotiating the terms of a settlement with the plaintiffs in the consolidated securities action, but that no agreement has been reached. Any claims that the plaintiffs could have assessed against the Company in these cases were discharged upon consummation of the Company's Plan of Reorganization. GLOBAL CROSSING: Execs Working To Settle NY ERISA Fraud Lawsuit --------------------------------------------------------------- Global Crossing, Ltd.'s current and former officers, directors and employees are negotiating a settlement for the consolidated class action filed against them in the United States District Court for the Southern District of New York, styled "In re Global Crossing Ltd. ERISA Litigation." The suit was filed pursuant to the Employee Retirement Income Security Act of 1974 (ERISA) in connection with the administration of the Company's 401(k) retirement savings plans. The plaintiffs allege, among other things, that the ERISA fiduciaries breached their duties to the 401(k) plan participants by directing or otherwise being responsible for the plans' acquiring and continuing to maintain investments in the Company's common stock. The consolidated complaint seeks, among other things, a declaration that the defendants breached their fiduciary duties to the plaintiff class, an order compelling defendants to make good on the losses sustained by the plans, the imposition of a constructive trust on any amounts by which the defendants were unjustly enriched by their actions, and an order of equitable restitution. Although the Company had been named as a defendant in the consolidated ERISA case, plaintiffs asserted in their consolidated complaint that they would not prosecute their action against the Company unless or until the Bankruptcy Court lifted or granted relief from the automatic stay of litigation imposed by the Bankruptcy Code. The Company denies any liability for the claims asserted in these matters and understands that the Company's past and present officers and directors have been negotiating the terms of a settlement with the plaintiffs in these actions, but that no agreement has been reached. Any claims that the plaintiffs could have asserted against the Company in this case were discharged upon consummation of the Company's Plan of reorganization. On April 30, 2002, an additional case, "Pusloskie v. Winnick et al.," was commenced in the United States District Court for the Southern District of New York against certain current and former directors, officers and employees of the Company. This case is brought on behalf of putative classes of former employees of the Company and asserts claims for breach of fiduciary duties in connection with the administration of one of the Company's 401(k) retirement plans. This additional case does not name the Company as a defendant and was not consolidated with the other ERISA cases. HOECHST CELANESE: Court Affirms Dismissal Of PB Plumbing Lawsuit ---------------------------------------------------------------- The United States Court of Appeals, Fifth Circuit affirmed a ruling by the U.S. District Court for the Eastern District of Texas, dismissing a lawsuit, brought against Hoechst Celanese Chemical Group, Inc. et al., on behalf of Richard R. Richard, Jr. et al., over allegations the Defendants caused the putative class's injuries through their manufacture, promotion, and sale of polybutylene (PB) for use in residential and commercial plumbing systems. Mr. Richard alleges that Hoechst Celanese Chemical Group, Hoechst Celanese Corporation, Shell Oil Company, and E.I. DuPont Nemours administered a complex scheme to mislead buyers into believing that PB plumbing systems were suitable for use as potable water distribution systems. To this end, the Defendants allegedly claimed that PB plumbing systems were superior to copper plumbing systems based on their representations that PB systems were lightweight, inexpensive, better able to withstand freezing temperatures, easier to install and purportedly enjoyed a lifetime of 50 years. According to the plaintiff, the Defendants knew that these representations were untrue because their scientists allegedly reported that the PB plumbing systems would degrade even when exposed to low concentrations of chlorine typically found in municipal water systems. Mr. Richard claims that in spite of this knowledge, the Defendants concealed the information and continued to market these products until approximately 1996. He further claims that before purchasing his mobile home in 1997, he inquired about its plumbing system. The seller informed him that the mobile home was equipped with an exceptionally reliable PB plumbing system that would likely outlast the mobile home itself. According to the plaintiff, the seller unwittingly made this misrepresentation in reliance on the promotional materials that the Defendants promulgated. Taking these misrepresentations into consideration, Mr. Richard purchased the home. Mr. Richard appealed the district court's dismissal of his class action lawsuit for lack of subject matter jurisdiction with regard to his due process claim, and dismissal for failure to state a claim upon which relief can be granted with regard to his RICO claims. PARAMETRIC TECHNOLOGY: Intends To Ask For MA Lawsuit Dismissal -------------------------------------------------------------- Parametric Technology Corporation has prepared a motion to dismiss the consolidated securities class action filed against it and certain of its current and former officers and directors in the United States District Court in Massachusetts claiming violations of the federal securities laws based on alleged misrepresentations regarding the Company's reported financial results for the fiscal years 1999, 2000 and 2001. In accordance with the court's briefing schedule, the Company first submitted the motion to the lead plaintiff for its response. Following the lead plaintiff's response to the motion the Company intends to prepare a reply brief, and all three documents shall be submitted to the Court simultaneously in late January 2004, the Company revealed in a disclosure to the Securities and Exchange Commission. The Company believes the claims are without merit, and intends to defend them vigorously. The Company cannot predict the ultimate resolution of these actions at this time, and there can be no assurance that these actions will not have a material adverse impact on its financial condition or results of operations. PENNSYLVANIA: Court Orders Web Site For PAP Smear Lawsuit Closed ---------------------------------------------------------------- U.S. District Judge Arthur Schwab ordered three law firms to shut down a Web site they were using to recruit women for a class action against Magee-Womens Hospital in Pittsburgh, the Associated Press reports. The class action filed last week claims the hospital wrongfully certified thousands of Pap smears with doctors' signatures when they were never reviewed by physicians, among other alleged misdeeds. On Tuesday, the University of Pittsburgh Medical Center's Magee-Womens Hospital fired back with a request to bar the firms from using the hospital's name online in connection with the lawsuits. The University of Pittsburgh Medical Center's Magee-Womens Hospital asked a judge to shut down the site and bar three law firms from using the Web address http://www.mageepapsmearsuit.com,or any other address including the hospital's name. The Web site was shut down shortly after Judge Schwab issued his order following a hastily arranged teleconference with attorneys on Wednesday. Visitors to the address got a short message and no explanation: "This site has been disabled. Thank you." To get the restraining order, the hospital had to show it would suffer harm if the Web site was not immediately removed and that it stood a chance to win a more permanent injunction against the site. Judge Schwab suggested that attorneys attempt to settle the matter before an injunction hearing, however, because he said the law firms have a right to an Internet site to recruit class-action plaintiffs. He said the Web site shouldn't use a name or Web address that might confuse the public into thinking the site was affiliated with the hospital. Hospital officials didn't immediately return a call for comment Wednesday, AP reports. In court papers, Magee-Womens claimed the law firms - Lieff Cabraser Heimann & Bernstein of New York, Roda & Nast of Lancaster and Sprague & Sprague of Philadelphia - fraudulently used the hospital's name and that the site contained "disparaging, unsupported and unsubstantiated allegations" to recruit women for a class action. Officials at Roda & Nast declined to comment on the judge's decision, AP states. Calls to the other two law firms were not immediately returned Wednesday. The firms represent two women and a doctor who sued the hospital last week, claiming it routinely misled patients into thinking that their tests were examined by doctors by putting doctors' electronic signatures on test results in an effort to make more money. The plaintiffs include Dr. Susan Silver, whose contract as a pathologist was not renewed at UPMC's Magee-Womens Hospital. Silver alleges the hospital believed it could get more gynecologists to send samples for testing at Magee - and in turn, generate more revenue - if it said samples were checked by physicians rather than technicians. Pap smear tests are routine screenings for gynecological cancers and tissue abnormalities. The hospital handles about 100,000 Pap smears a year, one of the larger caseloads in the region. The Web site, which Magee said was set up on Friday, quoted a lawyer from one of the firms stating that "an unknown number of women may be at risk of serious diseases that have gone undetected because they received unreliable Pap smear tests." Another stated, "We are greatly concerned that the evidence will show negative reports were issued when the tests clearly showed signs of significant abnormalities," the suit said, AP stated. The Web site also contained information about the law firms and a toll-free number for women interested in joining the lawsuit, according to court documents. Officials with the hospital and the University of Pittsburgh Medical Center have denied the allegations, saying the suits have no merit and could create unnecessary alarm, AP reports. PUTNAM FUNDS: Ohio Wants Larger Role In Mutual Fund Fraud Suit -------------------------------------------------------------- The state of Ohio joined a class action against Putnam Investments, a mutual-fund company holding more than $2.8 billion in assets including money invested by the Ohio Tuition Trust Authority, Knight-Ridder/Tribune Business News reports. Federal class actions were filed in October against the Company by various shareholders and clients as a result of alleged market timing abuses by former Putnam employees. Kim Norris, spokeswoman for Attorney General Jim Petro, said the state also filed an application for lead-plaintiff status in the case. Mr. Norris said it could take a judge up to six weeks to decide who should be lead plaintiff. Serving as local special counsel to the tuition trust is Colley, Shroyer & Abraham, a Columbus law firm. Michael F. Colley is longtime chairman of the Franklin County Republican Party who plans to step down next year. The tuition trust entered into a contract with Putnam Investments in July 2000 for investment-management services and to offer a new line of college savings investment options for the Tuition Trust's CollegeAdvantage 529 Savings Plan. Putnam manages 17 CollegeAdvantage investment options. The Putnam International Equity Fund and Putnam International Capital Opportunities Fund are the two College Advantage funds affected by alleged market-timing activities. "As lead plaintiff, the tuition trust will have input into the final outcome of the lawsuit," Jacqueline Williams, executive director of the Ohio Tuition Trust Authority told the Tribune Business News. "We believe that this action is in the best interest of our shareholders." Putnam continues to provide investment-management and record- keeping services for the College Advantage options it manages. The Company has said it does not believe it acted fraudulently, but its parent company, Marsh & McLennan, orchestrated the ouster of Putnam's chief executive and shook up other top positions. In October, officials suspended Ohio's popular prepaid tuition- trust program because it had run up a $321.1 million deficit as of June 30. At the time, they suggested investors put money in a Putnam-managed program instead. ROCKFORD POWERTRAIN: Court Affirms Ruling On Retiree Lawsuit ------------------------------------------------------------ The United States Court of Appeals, Seventh Circuit affirmed a ruling by the U.S. District Court for the Northern District of Illinois, granting summary judgment in the Defendants favor, in a lawsuit brought against Rockford Powertrain, Inc. (RPI), on behalf of the International Union of Untied Automobile, Aerospace, and Agricultural Implement Workers of America, U.A.W., and its Local 803, Joseph Wadzinski and Elton Kopplin, alleging the Company promised to provide retirees with life and health insurance benefits for duration of their lives and that its unilateral reduction, and later termination, of those benefits violated terms of collective bargaining agreement (CBA). Union and named plaintiffs brought this class action under section 502 of Employee Retirement Income Security Act and section 301 of Labor Management Relations Act against Defendant on behalf of retired employees and surviving spouses of retired employees of Rockford Powertrain, Inc., who claim that RPI promised to provide its retirees and their surviving spouses with health and life insurance benefits for the duration of their lives, and that RPI's unilateral reduction, and later termination, of those benefits violated the terms of a collective bargaining agreement, Section 502 of the Employee Retirement Income Security Act, and Section 301 of the Labor Management Relations Act. Both parties filed motions for summary judgment on the issue of whether RPI contractually was obligated to maintain retirement benefits for the life of its retirees and their surviving spouses. The district court granted summary judgment in favor of RPI, finding that the language of the plan documents included an unequivocal reservation of RPI's right to modify the retirement benefits provided, and further that RPI was not equitably estopped from modifying the benefits. TENNESSEE VALLEY: Power Surplus Suit Remanded to AL Fed. Court -------------------------------------------------------------- The United States Court of Appeals, Eleventh Circuit, granted Plaintiffs appeal and remanded to the U.S. District Court for the Northern District of Alabama, a class action lawsuit brought against the Tennessee Valley Authority (TVA), on behalf of the Birmingham Steel Corporation, et al. Plaintiff Birmingham Steel brought this case as a class action on behalf of a group of approximately 400 large-volume industrial consumers of electrical power who had Economy Surplus Power contracts with TVA. Birmingham Steel alleged that TVA had overcharged for power during the summer of 1998 and thus had breached the ESP contracts. The appeal stems from the decertification of the class action after the class representative filed for bankruptcy. The district court granted defendant's motion to decertify the class because it concluded that the named plaintiff, Birmingham Steel Corporation had become an inadequate class representative, that class counsel had failed to request the substitution of a class representative, and that no other member of the class was willing to serve in that role. Plaintiff Birmingham Steel appeals the district court's decertification of the class, arguing that the court should have allowed a reasonable time for a class member to intervene or be substituted as the new class representative. TRANSACTION SYSTEMS: NE Court Dismisses Securities Suit in Part --------------------------------------------------------------- The United States District Court for the District of Nebraska dismissed in part the consolidated securities class action filed against Transaction Systems Architects, Inc. and certain individual named defendants. Genesee County Employees' Retirement System is the designated lead plaintiff in the suit, which 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 purported class period. The consolidated complaint alleges that during the purported class period, the Company and the named defendants 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. The Company and the individual defendants filed a motion to dismiss the complaint, which the lead plaintiff opposed. On November 20, 2003, the court heard oral arguments on the defendants' motion to dismiss. On December 15, 2003, the court issued its order granting in part, and denying in part, the motion to dismiss. In particular, the Court dismissed, without prejudice, Gregory Derkacht as a defendant. The Court denied the motion to dismiss with respect to the remaining defendants, including the Company. The Company and the other defendants are required, and intend to, file an answer to the Consolidated Complaint. The Court has not yet implemented a scheduling order. UC DAVIS: Four Women Wrestlers Commence Discrimination Lawsuit -------------------------------------------------------------- Four wrestlers, all women, filed suit Thursday against UC Davis in federal court, alleging discrimination under Title IX -a landmark federal law passed in 1972 to ensure equal access to athletic opportunities, the DavisEnterpirse.net reports. The four women, who are either current students or plan to return to the university, seek certification for a class action lawsuit. "You don't drop an opportunity for women unless you're going to replace it with another opportunity, and they haven't done that," plaintiffs' attorney Kristen Galles told the Associated Press. Defendants named in the suit include UCD chancellor Larry Vanderhoef, associate vice chancellor Bob Franks, UCD Athletic Director Greg Warzecka, Associate Athletic Directors Pam Gill- Fisher and Larry Swanson. The suit, filed on behalf of three former varsity wrestlers and another who had planned to attend UCD based on its support of women's wrestling, alleges that an imbalance on the campus was made worse by cutting women from the wrestling team. Plaintiffs are seeking reinstatement for the female wrestlers, an increase in athletic scholarships for women and unspecified monetary damages, according to the AP. As of Friday, UCD had not received a copy of the complaint and a spokeswoman said the university would not comment until it is served. The case stems from the controversial decision to drop two female athletes, Chris Ng and Arezou Mansourian, from the wrestling team before the 2000-2001 season. The women continued to practice with the team until January 2001. At that time, Mansourian injured her back, but was not treated by the UCD training staff because she was not officially a varsity athlete. That prompted a meeting between Mr. Warzecka and the female wrestlers, from which both sides emerged with differing stories. Wrestling coach Mike Burch said that the women were not on the roster because the athletic department had told him to leave them off. "The roster I turned in was the roster they asked of me," Mr. Burch said then, DavisEnterprise reports. Athletics officials dismissed that claim. "He can say what he wants," Ms. Gill-Fisher told The Enterprise. "We don't create these (rosters)." That discrepancy was the basis of the complaint Ms. Ng filed April 25 with U.S. Department of Education's Office of Civil Rights. Incidentally, the day before, the UCD athletic department chose not to renew the contract of Mike Burch, who had coached the wrestling team for six seasons. That decision was not made public for another month. Mr. Burch, one of the few coaches to work at UCD on a part-time basis, took over a program that lost every dual meet for three seasons and won 19 in his first three years. During the 2000-01 season he had guided the Aggies to a 10-7 dual meet record, the best in school history. The athletic department, which has a policy against commenting on personnel issues, never gave a reason for Mr. Burch's dismissal. The coach of course, had his own theory. "It's clearly retaliation," Mr. Burch told the Enterprise in May of 2001. Mr. Burch filed a claim alleging just that with the Department of Education, saying his support of the female wrestlers cost him his job. Meanwhile in May of 2001, Ms. Ng and Ms. Mansourian were reinstated to the team. In October 2001, the OCR ruled that both complaints were unfounded and it appeared the issue had been resolved. Ms. Galles also represents Mr. Burch, who sued UCD for retaliation in September. UCD had allowed women to be part of its wrestling team since 1991. While no woman wrestler had ever wrestled agiainst a man during a meet, Mr. Burch added a women's division to the annual Aggie Open wrestling tournament. The NCAA does not sponsor a championship for women's wrestling. VIVENDI UNIVERSAL: Analysts Say SEC Deal Won't End Legal Woes ------------------------------------------------------------- Analysts and investors believe that Vivendi Universal's deal to settle fraud charges with U.S. market authorities should help put a messy episode behind the company but will not end all its legal problems, Reuters reports. Late Tuesday, the U.S. Securities and Exchange Commission (SEC) reached a deal under which Vivendi agreed to pay $50 million in civil penalties and former Chief Executive Jean-Marie Messier agreed to pay a $1 million fine and drop his claim on a 20.5 million euro ($25 million) severance package, the SEC said. The deal leaves Vivendi facing a class action in the United States, possible penalties by French market authorities and an ongoing investigation by the Paris public prosecutor. "Financially, it's not much," said one Paris-based analyst. "At the group level it is negligible, but in terms of image, it's a good thing. They close the matter with the SEC and . they did not have to restate their accounts like Enron, which would have had a negative effect . They come out of it pretty well without paying too much." The SEC said the money from the settlement would go to investors harmed when the company issued false statements, made improper adjustments to earnings and failed to disclose future financial commitments between December 2000 and July 2002. Mr. Messier was forced out as Vivendi chief executive last year after an expansion spree that saddled it with a crushing debt and brought it close to collapse. Neither Mr. Messier nor Vivendi, whose holdings include the world's biggest music company, France's number two cell phone operator and the country's leading pay-TV firm, admitted nor denied the SEC charges. However, the settlement with U.S. market authorities was a big step toward ending the high-profile battle between Mr. Messier and the company he transformed from a staid water utility to an international media and telecoms conglomerate. The fight has captivated France, with public disgust aimed at Mr. Messier for having tried to keep his severance package, which is enormous by the country's standards, despite promising never to seek such a payment, nearly bankrupting Vivendi and causing a massive loss of shareholder value, Reuters reports. Financial analysts said the settlement was a net positive, but noted the possible legal action the company still faced. They said many investors had already priced in a deal. Vivendi shares were up 1.8 percent at 19.19 in morning trading, outperforming the CAC-40 index of French blue-chip shares and the DJ Stoxx index of European media companies, Reuters states. Small shareholders also welcomed the deal, but said the score was not settled. "Morality has been flouted," said long-time shareholder activist Colette Neuville, whose ADAM minority shareholder defense group is the lead plaintiff in the U.S. class action. "Holiday cheer is not relevant in this matter," she told Reuters. "This was a battle where everyone defended their interests as best they could and tried to find a solution to avoid a conflict that could have forced them to reveal embarrassing information . If Jean-Marie Messier is giving up his severance, no doubt it is to avoid paying more in another situation. Don't think he was overcome by grace." Mr. Messier had accepted the payment when he left, but Vivendi refused to pay and vowed Mr. Messier would get nothing. As part of the SEC settlement, Mr. Messier was barred from holding an officer or director position at a U.S. public company for 10 years and Vivendi agreed to pay a portion of Mr. Messier's legal fees. WORLDWIDE XCEED: NY Court Reveals Securities Suit Certification --------------------------------------------------------------- The United States District Court for the Southern District of New York announced Class Action certification of a securities fraud lawsuit brought on behalf of Adam Burstyn, Robert James Kennedy, Joseph Rosenbaum, Waterview Partners, and Eli Mann, et al. against the Company and: (1) Scott A. Mednick, (2) Werner G. Haase, (3) Nurit K. Hasse, (4) William Zabit, and (5) John P. Gandolfo The lawsuit is filed on behalf of all persons who purchased the Company's common stock during the period from November 29, 1999 through November 15, 2000, inclusive, and who sustained damages as a result of such purchase. For more information, contact Worldwide Xceed Group, Inc. Securities Litigation, c/o Berdon Claims Administrator LLC, by Mail: P.O. Box 9014, Jericho, NY 11753-8914, by Phone: (800) 766-3330, Fax: (516) 931-0810, or visit the Website: http://www.berdonllp.com/claims. New Securities Fraud Cases DYNACQ HEALTHCARE: Chitwood & Harley Lodges TX Securities Suit -------------------------------------------------------------- The law firm of Chitwood & Harley LLP initiated a securities fraud class action complaint against Dynacq Healthcare, Inc. and two of its senior officers, on behalf of purchasers of Dynacq common stock from January 14, 2003 through December 18, 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. Plaintiff charges, inter alia, that the defendants fraudulently certified that Dynacq's financial statements for the first three quarters of fiscal 2003 were compiled in compliance with Generally Accepted Accounting Principles. On December 2, 2003, the Company announced that it was requesting an automatic extension of up to 15 days to file its Form 10-K for fiscal year ended August 31, 2003 with the SEC. On December 18, 2003, the Company announced that its independent auditor, Ernst & Young LLP, had resigned due to the Company's "lack of internal controls necessary to develop reliable financial statements." Also on December 18, 2003, the Company announced that it had received a Nasdaq Staff Determination stating that Dynacq's stock could be delisted on December 30, 2003 due to Dynacq's failure to file its fiscal year 2003 10-K in a timely manner. Finally, on December 18, 2003, the Company announced that it had received notice that the SEC was conducting an investigation into Dynacq's reporting of its financial statements, revenue and cost recognition, allowances for doubtful accounts, and internal financial and accounting controls. The market reacted negatively to these disclosures. Dynacq shares, after trading during the Class Period at a high of $27.37 per share, plummeted to a low of just $4.09 per share on December 19, 2003. For more information, contact Lauren S. Antonino, by Mail: 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309, by Phone: 1-888-873-3999 (toll-free), or E-mail: lsa@classlaw.com. DYNACQ HEALTHCARE: Charles Piven Launches Securities Suit in TX --------------------------------------------------------------- The Law Offices Of Charles J. Piven, P.A. initiated a securities class action in the United States District Court for the Southern District of Texas, Houston Division, against defendant Dynacq Healthcare, Inc. and certain of its officers, on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of Dynacq Healthcare, Inc. between January 14, 2003 and December 18, 2003, inclusive. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the Class Period which statements had the effect of artificially inflating the market price of the Company's securities. For more information, contact Charles J. Piven, by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by Phone: 410/986-0036, or E-mail: hoffman@pivenlaw.com. DYNACQ HEALTHCARE: Wolf Popper Commences Securities Suit in TX -------------------------------------------------------------- The law firm of Wolf Popper LLP initiated a securities fraud class action complaint against Dynacq Healthcare, Inc. and two of its senior officers on behalf of purchasers of Dynacq common stock from January 14, 2003 through December 18, 2003, inclusive. Plaintiff alleges, inter alia, that the defendants fraudulently certified that Dynacq's financial statements for the first three quarters of fiscal 2003 were compiled in compliance with Generally Accepted Accounting Principles. The true facts were first revealed beginning on December 2, 2003, when the Company announced that it was requesting an automatic extension of up to 15 days to file its Form 10-K for fiscal year ended August 31, 2003 with the SEC. On December 18, 2003, the Company announced that its independent auditor, Ernst & Young LLP, had resigned due to the Company's "lack of internal controls necessary to develop reliable financial statements." Also on December 18, 2003, the Company announced that it had received a Nasdaq Staff Determination stating that Dynacq's stock could be delisted on December 30, 2003 due to Dynacq's failure to file its fiscal year 2003 10-K in a timely manner. Finally, on December 18, 2003, the Company announced that it had received notice that the SEC was conducting an investigation into Dynacq's reporting of its financial statements, revenue and cost recognition, allowances for doubtful accounts, and internal financial and accounting controls. The market reacted negatively to these disclosures. Dynacq shares, after trading during the Class Period at a high of $27.37 per share, plummeted to a low of just $4.09 per share on December 19, 2003. For more information, contact Robert C. Finkel, by Mail: 845 Third Avenue, New York, NY 10022-6689, Phone: 212-451-9620, or 877-370-7703 (toll free), Fax: 212-486-2093, E-mail: irrep@wolfpopper.com; or visit the firm's Website: http://www.wolfpopper.com. PILGRIM BAXTER: Wolf Popper Launches Securities Suit in PA Court ---------------------------------------------------------------- The law firm of Wolf Popper LLP initiated a class action securities lawsuit, on behalf of all purchasers and holders of PBHG Mutual Funds from November 13, 1998 through November 13, 2003, in the United States District Court in Pennsylvania. The Complaint alleges that during the Class Period, Pilgram Baxter & Associates, Ltd., the manager of the PBHG Mutual Funds, and the two founders of Pilgram Baxter, and other affiliated entities, engaged in illegal trading practices, in concert with institutional traders, that caused financial injury to long-term shareholders of Pilgrim Baxter (PBHG) mutual funds. According to the Complaint, the defendants permitted certain favored investors, including defendant Pilgrims' private investment limited partnership, to illegally engage in "timing" of PBHG Mutual Funds to benefit from temporary inefficiencies in the daily pricing of the PBHG Mutual Funds, to the detriment of other long-term shareholders, who lost the opportunity to fully benefit from the appreciation in the securities held by the PBHG Mutual Funds. These PBHG Mutual Funds are subject to this class action: (1) PBHG Strategic Small Company Fund (NASDAQ: PSSCX) (2) PBHG Disciplined Equity Fund (NASDAQ: PBDEX) (3) PBHG Mid-Cap Fund (formally known as PBHG Mid-Cap Value Fund) (NASDAQ:PBMCX) (4) PBHG Small Cap Fund (formally known as PBHG Small Cap Value Fund) (NASDAQ: PBSVX) (5) PBHG Clipper Focus Fund (NASDAQ: PBFOX) (6) PBHG Small Cap Value Fund (formally known as TS&W Small Cap Value Fund, LLC) (NASDAQ: PSMVX) (7) PBHG REIT Fund (NASDAQ: PBRTX) (8) PBHG Technology & Communications Fund (NASDAQ: PBTCX) (9) PBHG IRA Capital Preservation Fund (NASDAQ: PBCPX) (10) PBHG Intermediate Fixed Income Fund (NASDAQ: PBFIX) (11) PBHG Cash Reserve Fund (NASDAQ: PBCXX) For more information, contact Andrew E. Lencyk, by Mail: 845 Third Avenue, New York, NY 10022, by Phone: 212-759-4600 or 877-370-7703 (toll free), Fax: 212-486-2093 or 877-370-7704 (toll free), E-mail: alencyk@wolfpopper.com, or irrep@wolfpopper.com, or visit the firm's Website: http://www.wolfpopper.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. 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