/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/040129.mbx C L A S S A C T I O N R E P O R T E R Thursday, January 29, 2004, Vol. 6, No. 20 Headlines ANTI-PSYCHOTIC DRUGS: Groups Issue Side Effects, Risk Warning BBK ENTERPRISES INC: Recalls 630 Tree Climbers For Injury Hazard BELLSOUTH CORPORATION: Judge Dismisses Antitrust Lawsuit In FL CANADA: Lawyer Asks Sexually-Abused Sea Cadets To Join Lawsuit CINCINNATI LIFE: To Pay $1M To Settle Burial Policy Lawsuit CITIGROUP INC.: FL Couple Files Securities Fraud Lawsuit In NY CONNECTICUT: State Court Grants Certification To Back Taxes Suit DAIMLERCHRYSLER: Court Denies Certification Of 'Mini-Van' Suit FARMERS INSURANCE: AC Affirms Certification Of Overtime Lawsuit FLORIDA: Lee County Impact Fees Suit Moves To Trial in FL Court GLOBAL CROSSING: Underwriters Commence Suit For Accounting Fraud HEALTHSOUTH CORPORATION: Ex-CEO Eyes Grand Jury In Fraud Lawsuit HEPATITIS C: Pact Deemed Final As 30-Day Protest Period Passes HOLOCAUST LITIGATION: Mengele Survivors Relate Unknown Suffering JC PENNEY: Appeals Court Upholds Severance Plan Suit Dismissal JENNY CRAIG: Reaches Pact With Vegetarians In 'Labeling' Lawsuit MARTHA STEWART: Judge Seats 12-Member Jury For Securities Trial MASSACHUSETTS: High Court Refuses Injunction To Stop MCAS Exam MASTERCARD: Wal-Mart Stores To Stop Accepting Firm's Debit Cards MICROSOFT CORPORATION: To Settle NC Suit With $89.2M In Vouchers MISSISSIPPI: Appeals Court Upholds Desegregation Pact Approval PUTNAM FUNDS: Arbitrator To Decide On Compensation For Ex-Chief SCG MIYAIRI: Recalls Liquid Propane OPD Valves For Fire Hazard TELXON CORPORATION: Fairness Hearing Set February 12, 2004 in OH TV AZTECA: Shareholders File Securities Fraud Lawsuit in S.D. NY VANS INC.: Labels Suit as "Factually Incorrect, Without Merit" WORLDCOM INC.: Ex-Finance Chief's Trial Postponed To April 7 New Securities Fraud Cases AMERICAN BUSINESS: Brian Felgoise Launches Securities Suit in PA BIOPURE CORPORATION: Lead Plaintiff Motion Deadline Set March 1 BIOPURE CORPORATION: Kaplan Fox Commences Securities Suit in MA DEUTSCHE BANK: Cauley Geller Launches Securities Suit in S.D. NY MICROMUSE INC.: Charles Piven Lodges Securities Suit in N.D. CA NETWORK ENGINES: Schatz & Nobel Lodges Securities Lawsuit in MA REDBACK NETWORKS: Schatz & Nobel Launches Securities Suit in CA ROYAL DUTCH: Wechsler Harwood Files Securities Fraud Suit in NJ SECURITY BROKERAGE: Stull Stull Files Securities Suit in S.D. NY TV AZTECA: Brian Felgoise Files Securities Fraud Suit in S.D. NY TV AZTECA: Brodsky & Smith Lodges Securities Lawsuit in S.D. NY TV AZTECA: Bernstein Liebhard Files Securities Suit in S.D. NY ********* ANTI-PSYCHOTIC DRUGS: Groups Issue Side Effects, Risk Warning ------------------------------------------------------------- In the February issue of the journal Diabetes Care, four medical societies say that people taking certain drugs for schizophrenia, manic-depression, autism, dementia or several other psychiatric disorders should be carefully watched for signs they are developing diabetes, obesity or high cholesterol, the Associated Press reports. The recommendation, released Tuesday, from the American Diabetes Association, the American Psychiatric Association, the North American Association for the Study of Obesity, and the American Association of Clinical Endocrinologists, follows recent studies that link those potential side effects to certain anti-psychotic drugs. The statement deals with six now available in the United States: Abilify, Clozaril, Geodon, Risperdal, Seroquel and Zyprexa. The medications differ in their risks of promoting the various side effects, the statement says. So a patient who develops a problem with one drug can be gradually switched over to another drug with less potential for that problem. For example, a switchover should be considered if a patient has a weight gain of 5 percent or more, the statement says. Obesity and diabetes, like high cholesterol, raise a person's risk of heart disease. The recommendation says doctors should screen patients before starting them on such a drug or as soon as possible afterward, noting such things as a history of obesity and diabetes in the patient and the family, and the patient's weight, blood pressure and cholesterol levels. Doctors should also monitor the patient once therapy has begun. Patients and family members should be informed of the potential for the side effects, and be told of signs of diabetes and especially those of a life-threatening complication called diabetic ketoacidosis, the statement says. That complication is marked by such symptoms as weight loss, nausea, vomiting, rapid breathing and dehydration. That complication has appeared in some people using anti-psychotics, and it was an early tip-off that the drugs might be linked to diabetes. BBK ENTERPRISES INC: Recalls 630 Tree Climbers For Injury Hazard ---------------------------------------------------------------- BBK Enterprises Inc., of San Antonio, Texas, in cooperation with the U.S. Consumer Product Safety Commission (CPSC), is voluntarily recalling 630 BBK 10010 Tree Climbers since the steel back brace on the tree climber can weaken and fail, posing a serious injury hazard to the user. There have been no reports of incidents or injuries relating to this product. The recalled BBK Tree Climbers have a model number of BBK 10010, which can be found on the outside of the box. The climber, which is primarily used by hunters, has a 2-piece climbing stand with a green powder coat finish, a camouflage padded seat and an expanded metal platform. A yellow warning label on the climber has BBK's name, address, and phone number printed on it. The tree climbers, manufactured in China, were sold at Hunting gear retailers and distributors nationwide, including Mattoon Rural King Supply, Johnston Seed, Everharts Sporting Goods and Sportsradein, sold the tree climbers between August 2003 and October 2003 for about $90. The recalled units were also sold on the BBK Enterprises Web site: www.bbkhuntingsystems.com. Consumers are urged to stop using these climbers immediately and call BBK or the retail store to return the units and receive reimbursement. For more information, contact BBK at (800) 228-4846 between 8 a.m. and 5 p.m. CT Monday through Friday or log on to their Web site at www.bbkhuntingsystems.com. BELLSOUTH CORPORATION: Judge Dismisses Antitrust Lawsuit In FL -------------------------------------------------------------- U.S. District Judge Alan Gold dismissed a lawsuit against BellSouth Corporation, alleging that the Company broke antitrust law by illegally requiring customers seeking high-speed DSL lines to buy its local phone service, the Associated Press reports. The lawsuit, filed last year, sought to band together customers in a class action in the nine Southern states where BellSouth provides 85 percent of local phone service and 80 percent of the fast digital phone lines. The suit claimed the dual-service requirement artificially raised the market price for local service and helped BellSouth maintain a monopoly. Under state regulations, existing DSL customers can switch to a different local provider if the company has an agreement in place with BellSouth. Judge Gold ruled that the customers lacked legal standing to pursue the lawsuit and failed to state any valid legal claims against the Baby Bell, AP reports. After-hours calls to BellSouth and the customers' attorneys were not immediately returned. CANADA: Lawyer Asks Sexually-Abused Sea Cadets To Join Lawsuit -------------------------------------------------------------- A lawyer is asking all victims of sexual abuse on the HMCS Discovery in Stanley Park to join the class action he filed against the Canadian federal government, the Vancouver Sun reports. The suit alleges the government set up the sea cadet program but didn't properly monitor it. Last week a B.C. Supreme Court judge certified the lawsuit. Lawyer Robert Gibbens told the Sun that police have interviewed about 50 victims, and estimated that the actual number of boys abused between 1967 and 1977 could be as high as 200. "A lot of these individuals may not be inclined to launch an individual action, and it's somewhat easier for them to get into a class action," Mr. Gibbens said. "A lot of these individuals really right now lead quiet lives of desperation because they are not employed or they've had a very desultory earning history because of this abuse when they were children . they just have a difficulty adjusting to present-day life." "We've got to go against the federal government for systemic negligence. They were the ones that set it up, they failed to monitor and control this (program) over a 10-year period," Mr. Gibbens continued. "These people who were responsible for the sea cadets at that particular time were basically surrogate parents." Mr. Gibbens told the Sun he wanted the message about the suit out across Canada. He intends to publish notices in newspapers about the proceeding. The amount of money targeted for each victim will depend on pain and suffering, and other factors such as wage loss. If the plaintiffs are successful, the total amount of damages could be very large. The government, which denies the allegations, has since named several former officers as third parties to the suit, including Conrad Sundman and Ralph Bremner, both of whom have been convicted of sexually assaulting several sea cadets, who were generally between the ages of 13 and 17 when they were abused. CINCINNATI LIFE: To Pay $1M To Settle Burial Policy Lawsuit ----------------------------------------------------------- Cincinnati Life Insurance Co. reached a $1 million settlement for the class action filed against it, claiming a company it bought charged blacks more for burial insurance, the Associated Press reports. The suit alleges that Inter-Ocean Insurance Co. charged blacks an average of 16.5 percent more than whites between 1947 and 1968. Cincinnati Life acquired Inter-Ocean in 1973. Under the settlement announced by state insurance officials, about 8,000 black customers or their descendants could collect at least $25 for each policy. Those who still have active policies or who already were paid death benefits could receive up to an additional $75. The agreement also includes a $100,000 administrative fine and $116,751 to cover the cost of Ohio's investigation, AP reports. CITIGROUP INC.: FL Couple Files Securities Fraud Lawsuit In NY -------------------------------------------------------------- Law firm Babbitt, Johnson, Osborne & LeClainche, P.A., announced that it has filed a lawsuit against Citigroup and its Salomon Smith Barney brokerage for fraud and outrageous conduct on behalf of a retired Palm Beach County couple who lost their life savings on WorldCom, Business Wire reports. As WorldCom and MCI investors face a Feb. 20 deadline to opt out of a class action suit against Citibank and Citigroup Global Markets, Inc. (formerly Salomon Smith Barney), the Jupiter couple filed the suit independently of the class action. Jack and Elaine Holtsberg said they lost money by relying on favorable statements from former Salomon telecommunications analyst Jack Grubman in prominent financial publications, even as the stock was collapsing. Mr. Holtsberg is a retired salesman for a Miami television station, and Mrs. Holtsberg works as a substitute teacher and personal assistant to an older couple in Palm Beach County. Theodore Babbitt, the West Palm Beach attorney retained by the plaintiff, said the suit is a sharp departure from previous suits and stands to affect anyone who invested in WorldCom by relying on Grubman's advice in the financial media. "This suit stands for the proposition that anyone who bought WorldCom stock and lost money potentially has a right to sue Salomon Smith Barney," said Babbitt, a partner at the West Palm Beach plaintiff's firm Babbitt, Johnson, Osborne & LeClainche, P.A. "Anyone who read and believed the statements of Jack Grubman and acted on that belief is a potential claimant. This same principle could apply to investors in Enron, Global Crossing and other stocks. We intend to recover not only the value of Mr. Holtsberg's stock at its height, but punitive damages at an appropriate time." The 24-page, six-count suit says Mr. Holtsberg made investment decisions relying on Grubman's statements in Fortune Magazine, Forbes Magazine, Smart Money, Business Week and the Wall Street Journal, all publications to which he subscribed. The suit is being filed independently of the Citigroup Salomon class action suit in U.S. District Court in New York, where WorldCom investors face a Feb. 20 deadline to opt out of the class action. Those who fail to opt out of the class action in U.S. District Court in New York by that date will automatically be included in the class action and therefore cannot pursue individual claims. "Class action claimants usually receive only pennies on the dollar for their original investments," said Babbitt Johnson partner Joseph Osborne, who is also representing the Holtsbergs. The suit documents Mr. Grubman's touting the stock even in the midst of its collapse on NASDAQ in 2000. The suit further documents the interlocking business relationships among Citigroup President Sanford Weill, WorldCom CEO Bernard Ebers, and Grubman, who served as an advisor and analyst for WorldCom in acquisitions and as a participant in board and subcommittee meetings. According to the suit, Salomon earned $343 million from telecom investment banking fees in 1998 alone, when the brokerage gave Mr. Grubman a compensation package of $25 million a year. "Grubman was not an independent or objective analyst but rather a materially and knowingly conflicted analyst," the suit says. The suit is far broader than another suit filed in August 2003 by the Babbitt firm on behalf of Anthony Amodio, a retired employee of MCI (now WorldCom) who was a Salomon Smith Barney customer. (Amodio v. Citigroup, Inc., et al., Fifteenth Judicial Circuit, Palm Beach County, Fl., Case No. 502003 CA 008635, Judge Arthur Wroble). Unlike Mr. Amodio, the Holtsbergs were neither WorldCom employees nor Salomon customers. In June 2002, regulators charged WorldCom Inc., with fraud after MCI WorldCom admitted to hiding nearly $4 billion in costs. WorldCom stock fell to an all-time low of a few cents from its high of $60. In late 2003, U.S. District Judge Denise Cote in New York certified a class action suit against MCI, (formerly WorldCom) and Citigroup Global Markets, granting class status to anyone who bought publicly traded shares of WorldCom or MCI from April 29, 1999, to June 25, 2002. CONNECTICUT: State Court Grants Certification To Back Taxes Suit ---------------------------------------------------------------- The Connecticut Superior Court granted class certification to a lawsuit filed against the city of New Haven and private collection firm JER Revenue Services, on behalf of at least 2,500 delinquent taxpayers, the New Haven Register reports. Chick's Drive-in owner Joseph E. Celentano filed the suit, which involves a $33,111 collection fee that the city and JER Revenue Services, which the city hired to collect back taxes, tacked onto a $220,745 back tax bill dating back to 1987 on the Bowl Drive-in movie theater property off Front Avenue and Route 1. Mr. Celentano is represented by Wallingford lawyer, Jennifer Ranciato and New Haven lawyer, John R. Williams. Superior Court Judge Richard Arnold granted certification to the suit, saying that it met a number of key requirements to be heard as a class action. "The plaintiffs have satisfied their burden of establishing that this case meets all requirements governing class certification," Judge Arnold wrote. "The proposed class is certified as: All persons, corporations, businesses and/or limited liability companies who owned property and were taxpayers of the city of West Haven at any time from July 10, 2002 and the present, as set forth on appropriate grand lists for the subject time periods." "Mr Celentano, John Williams and I are pleased that the case has been certified as a class action," Mr. Ranciato told the Register. "This will allow the taxpayers to get refunds of the illegal and unconstitutional collection fees that the city and JER have been charging." "This is America, and the American dream involves working in order to make money," he added. "Neither the city nor JER Revenue Services understand this. In fact, JER recently demanded $10,086.51 for sending two letters and making a couple of phone calls. The taxpayers know this is a scam and are not putting up with it." West Haven Corporation Counsel Michael Farrell said "none of the issues changes as a result of class certification." "We believe that this will work to everyone's advantage, because this will finalize the issue once and for all, as far as everyone is concerned," Mr. Farrell told the Register. "If it had only been Lawrence Mall and the issue was decided, next year or the year after, someone else could raise the issue. . This will put all those claims to rest." DAIMLERCHRYSLER: Court Denies Certification Of 'Mini-Van' Suit -------------------------------------------------------------- The United States Court of Common Pleas, Pennsylvania County denied certification of lawsuit brought against DaimlerChrysler Corporation, on behalf of Edward Solarz, and other min-van owners, asserting breach of implied warranties, breach of express warranty, breach of contract, breach of duty of good faith and fair dealing, and violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Act. The Plaintiffs, Edward Solarz, Matthew Ginsburg, and Kathleen Dolan seek to certify a class of certain DaimlerChrysler minivan owners, who between 1995 and 2000, purchased minivans manufactured by DaimlerChrysler from their local dealerships. Specifically, in 1995, Solarz purchased a 1996 Chrysler minivan from D'Ambrosia Dodge in Downingtown, Pennsylvania, and Ginsberg purchased a 1996 Dodge Caravan from Cherry Hill Dodge, Cherry Hill, New Jersey. In 2000, the Dolans purchased a 2000 Dodge Grand Caravan Sport from Frank C. Videon Dodge in Newtown Square, Pennsylvania. Soon after purchasing these vehicles, Plaintiffs discovered that their minivans did not have a "park-brake interlock." The park- brake interlock minimizes the chance that a vehicle will be inadvertently moved because the gears are "locked" in the "park" position unless the brake pedal is depressed. Although the park-brake interlock was a standard feature on many comparable minivans, DaimlerChrysler did not offer this feature on the minivans purchased by Plaintiffs. On August 1, 2000, the Dolans' parked minivan began to roll down the street after their 1 1/2 year old daughter accidentally shifted the minivan's transmission from "park" into "drive." After their mechanic informed them that their minivan lacked the park-brake interlock, the Dolans' sought the help of their dealership. However, they were told that the minivan could not be modified to add a park-brake interlock. Despite their requests, DaimlerChrysler did not modify the minivan. In April 2001, the plaintiffs commenced this class action, and seek to certify the class consisting of Pennsylvania residents who purchased or leased a new Chrysler minivan from February 10, 1995 through the date the last new 2000 model Chrysler was sold in Pennsylvania, and who continue to own or lease the minivan. FARMERS INSURANCE: AC Affirms Certification Of Overtime Lawsuit --------------------------------------------------------------- The Court of Appeals of New Mexico affirmed a ruling by the District Court of Bernalillo County, granting class certification of a lawsuit brought against Farmers Insurance Exchange (FIE) and Marty Draper, on behalf of Robert Salcido, Robert Zeissel, Barbara Boltrek, Gust Karmeris, Jr ., and James Hruschak, et al., seeking to recover overtime payments for work they performed as claims adjusters of the company. In July 2001, Plaintiffs brought this action under NMSA 1978 of the New Mexico Minimum Wage Act, seeking to recover overtime payments for work they performed as claims adjusters for FIE. Defendants represent that FIE is a reciprocal insurance exchange company that sells insurance policies, collects insurance premiums, and reinsures risks and invests premiums. FIE's sales of insurance and reinsurance business appears to primarily involve the adjustment and settlement of claims. The claims adjusters who sought class certification held the titles of personal lines claims representative, senior claims representative, and special claims representative. Before Plaintiffs brought this action, several other classes of claims adjusters throughout the country were certified in similar class action suits brought against FIE. Three months after Plaintiffs initiated the case at bar, the class action suits in Colorado, Illinois, Michigan, Minnesota, New Mexico, Oregon, and Washington were consolidated into one multi-district litigation, by stipulation of the parties. That action was bifurcated into two phases: liability and damages. The classes in the MDL agreed to argue FIE's liability under the Federal Labor Standards Act (FLSA) and the overtime laws of the seven states where the actions originated. Also as part of the agreement, FIE stipulated to the certification of a class composed of those claims adjusters who have worked in one or more of the seven states during the class period, while holding the titles of personal lines claims representatives, senior claims representatives, and special claims representatives. The parties further agreed to jointly submit a proposed class certification order. Soon after the MDL stipulation was approved, Plaintiffs in the present action filed an emergency motion to certify their proposed class, strike Defendants' response to the certification motion, and to send notice to class members. Plaintiffs argued that Defendants should be precluded from opposing class certification based on FIE's stipulation in the MDL. Plaintiffs stated that they were willing to accept the MDL class definition even though it varied slightly from the definition they originally proposed. Rejecting Plaintiffs' argument, the district court concluded it had an obligation to evaluate the proposed class under Rule 1-023(F) independent of Defendants' stipulation in the MDL. Following a hearing on the merits of the Plaintiffs' motion for class certification, the district court certified a class composed of personal lines claims representatives, senior claims representative, and/or special claims representative who worked for FIE while in New Mexico between September 17, 2000, and the date the court approved notice to the class members is mailed. In their application for interlocutory review of the class certification, Defendants challenge certification of the class on two grounds: (1) the district court improperly relied on the class stipulation in the MDL without a separate finding that the Plaintiffs had satisfied each of the elements required under Rule 1-023; and (2) the named Plaintiffs are not members of the purported class they seek to represent. Defendants seek approval of the application for appeal, arguing that certification in this case was manifestly erroneous, will make settlement inevitable, and that the Court's decision would resolve an unsettled legal issue that is important to the litigation and important in itself. FLORIDA: Lee County Impact Fees Suit Moves To Trial in FL Court --------------------------------------------------------------- The suit filed in Florida State Court over Lee County School impact fees is headed to trial in March, the Bonita Daily News reports. The fees are designed to offset the demand new growth places on infrastructure. Lee County collects the fees for fire and emergency medical service, roads, parks and schools, with fees totaling from $6,059 to $7,131, depending on the fire district. There is no statute authorizing impact fees. Their collection and use is governed only by case law produced by other challenges. The suit questions the methodologies of impact fee consultants who have studied and supported impact fees across Florida, so the ramifications could be felt statewide. Lawyer for the plaintiffs Jeff Garvin says he can show there's no justification to collect the fees at all based on the cost of the infrastructure and the high property taxes newly built property owners typically pay, the Daily News reports. Earlier this month, Judge James Seals appointed Mr. Garvin and fellow plaintiffs' lawyer Ted Trippe to represent everyone who has paid the fee - $2,232 for a single-family home - since county commissioners created it at the beginning of 2002. Any of the nearly 9,000 who have paid the fee can opt out of the suit, but Mr. Garvin said he expects 7,500 or so to join. Assistant county attorney Tom Wright said the class status ruling makes no difference to the arguments of the case. The plaintiffs should have asked for class status earlier, he told the Bonita Daily News, and the case might not have dragged on for two years. "It's dragged on and dragged on," he said. "We filed a motion for trial May the year before last." The lengthy case has included claims of a biased judge by the county, claims Judge Seals and then an appeals court rejected. The suit could have statewide ramifications, as other counties look to impact fees to help meet the demands of growth. GLOBAL CROSSING: Underwriters Commence Suit For Accounting Fraud ---------------------------------------------------------------- Global Crossing Ltd.'s founder and former chairman Gary Winnick and other former top company officials faces a lawsuit filed in the United States District Court in New York by the underwriters of its $1 billion security offering in April 2000, Dow Jones Business News reports. In the suit, Citigroup Inc., Goldman Sachs Group Inc. and Merrill Lynch & Co. allege that the defendants, including Global Crossing founder and former Chairman Winnick, should have known about the firm's plot to misstate financial results. The underwriters asserted that they relied upon the signed statements of Mr. Winnick, former Chief Financial Officer Dan J. Cohrs, former Chief Operating Officer David L. Lee and other former executives and directors in agreeing to facilitate the $1 billion preferred stock offering. The Company and the underwriters were named as defendants in a shareholder class action filed shortly after the Company's filing for Chapter 11 bankruptcy in January 2002. Shareholders allege that those signed statements attesting to the accuracy of the company's books were false. In their lawsuit, the underwriters argue that any fault lies with the Global Crossing executives and directors they have sued. The underwriters deny any liability in the class action suit, but if they are "found liable in that action, such liability will have been caused by the actions or omissions" of the Global Crossing officials, according to their new lawsuit. The suit seeks reimbursement from Winnick and the other former officials if Citigroup, Goldman Sachs and Merrill Lynch are ordered to pay damages in the class-action suit. It also seeks unspecified damages and legal costs beyond that conditional reimbursement, Dow Jones reports. HEALTHSOUTH CORPORATION: Ex-CEO Eyes Grand Jury In Fraud Lawsuit ---------------------------------------------------------------- Former HealthSouth Chief Executive Officer Richard Scrushy asked the court to make prosecutors reveal whether anyone linked to the Company served on the grand jury that indicted him on fraud charges, the Associated Press reports. The request came as Mr. Scrushy awaits trial on charges that he manipulated Company earnings by billions to meet Wall Street forecasts. He has pleaded innocent to the charges. The trial begins August 23, 2004. The defense also filed several other motions, including a demand that prosecutors point them to the key documents that will be used during the trial. According to Abbe Lowell, Mr. Scrushy's attorney, defense attorneys are left to sort through more than 1 million paper documents and thousands more in digital form that the government has turned over. "We appreciate the government's thoroughness but not at the expense of specificity," he told AP. The defense also asked a judge to throw out an FBI recording of Mr. Scrushy that was secretly made by former chief financial officer William Owens and to explain its claims against Mr. Scrushy in more detail. In the event that Mr. Scrushy is convicted, the defense asked that jurors be allowed to determine how much of his money and assets the government should be allowed to seize. Mr. Lowell added letting someone with ties to the company serve on the panel would amount to having an alleged victim sitting in judgment of someone accused of a crime. "This would be fundamentally unfair," he said. U.S. Attorney Alice Martin said, "These types of pleadings are expected in criminal cases, and the United States will file its written responses in the near future." She declined further comment, AP reports. HEPATITIS C: Pact Deemed Final As 30-Day Protest Period Passes -------------------------------------------------------------- The $25 million settlement of a class action over the exposure of hundreds of patients to Hepatitis C is deemed final after a 30-day period to oppose it passed without protest, the Associated Press reports. The suit was filed on behalf of 65 former patients of a pain management clinic who developed hepatitis C after nurse anesthetist James Hill reused needles and syringes to inject intravenous pain medication into the patients' IVs. The suit also names as defendants: (1) Norman Regional Hospital which housed the pain management clinic attended by the patients, (2) Dr. Jerry Lewis, the clinic's operator, (3) Oklahoma City-based Northwest Surgical Center, and (4) the Oklahoma Center for Orthopedic and Multi-Specialty Surgery Under the settlement, patients will get $332,500 apiece, while a man who became ill will receive $710,000. Others who tested positive for hepatitis B will receive varying amounts and 754 who tested negative will get $625 each. Five attorneys who were appointed by the court as the plaintiffs' co-counsel will divvy up 3 percent of the $25 million settlement, or $750,000. "The final order lays out the process and procedure to verify those plaintiffs entitled to a part of the global settlement," said Cleveland County District Judge William Hetherington, who presided over the class action that included 1,234 plaintiffs, AP reports. Because no appeals were filed, the lawsuit is considered "in judgment, which means it's been disposed of," he said. HOLOCAUST LITIGATION: Mengele Survivors Relate Unknown Suffering ---------------------------------------------------------------- Several victims have come forward in written testimonies relating to a settlement with victims of the Holocaust, revealing that they were tortured under the guise of scientific research, the Associated Press reports. A few testimonies submitted to a settlement committee in the last year will be released on Monday, Gideon Taylor, executive vice president of the Conference on Jewish Materials Claims Against Germany, told AP. So far, 1,778 Jewish victims of Nazi medical experiments from 33 countries have responded. Elizabeth Fried, 88, revealed that she survived eight months at the hands of Dr. Josef Mengele and other Nazis. She said Dr. Mengele included her in his experiments for eight months in 1944 because she was a twin. In her testimony, she said the experiments took away her ability to have children. "Dr. Mengele took blood often and gave me injections. He never looked me in the eye. I also had to clean and cook for him as if I were his maid," she wrote, AP reports. Another 73-year-old woman, who remained anonymous, asserted that Dr. Mengele injected her with drugs and chemicals or where "they made cuts into my body and left the wounds open for them to study." "I was used as a guinea pig for medical experiments," she writes, AP reports. At another point, she says, "As bad as the experiments were, without them I would not be here today to write this." Their stories, told to Jewish groups dispersing money from Holocaust court settlements, prove that thousands more were tortured under the guise of scientific research than previously thought. "We certainly didn't expect this number," Mr. Taylor said of the 1,778 who responded, many noting that they were less interested in the $5,400 payouts that will begin getting mailed this week than in having their stories known, AP reports. He said such a large number of people making claims indicates there were thousands more who either died during the experiments or have died in the years since. "Our knowledge has been significantly broadened," he said. In submissions likely to change the way history books chronicle one of the worst horrors of the Holocaust, several victims have agreed to let their names be released. Among those was Polish- born U.S. resident Hyman Turenshine, 76, who said he remained silent for years about the sterilization experiments he underwent in Auschwitz in 1944 - but was motivated to speak out by those who suggest the Holocaust never occurred. Written statements by Mr. Turenshine and others who are speaking out will be given to Holocaust institutions, including the United States Holocaust Memorial Museum in Washington. "Every day when I go to wash or shave, I look down at the number tattooed on my arm and am reminded and haunted by everything that happened," Mr. Turenshine said, according to AP. "The payment isn't what's important to me. Instead, our stories need to become part of a permanent historical record." JC PENNEY: Appeals Court Upholds Severance Plan Suit Dismissal -------------------------------------------------------------- The United States Court of Appeals for the Third Circuit affirmed a ruling by the U.S. District Court for the Western District of Pennsylvania granting Summary Judgment, in favor of the Defendant, of a lawsuit brought against The J.C. Penney Company, on behalf of Plaintiff Joseph R. Lettrich, et al., over a Separation Allowance Program which Defendant terminated in 1993. In 1998, Mr. Lettrich filed suit against J.C. Penney in the United States District Court for the Western District of Pennsylvania pursuant to 502(a)(1)(B) of ERISA, 29 U.S.C. 1132(a)(1)(B), on behalf of himself and others similarly situated. He contended that the Company's attempt to notify participants of the termination of the Plan failed to satisfy ERISA's notice and disclosure requirements set forth in 29 U.S.C. 1024(b)(1)(B) and 29 C.F.R. 2520.104b-1(b)(1). He also contended that his benefits under the Plan were vested and therefore survived the termination of the plan. The District Court adopted the Magistrate Judge's Amended Report and Recommendation as the opinion of the court. Accordingly, the District Court held that the disclosure in the Proxy Statement J.C. Penney sent to Mr. Lettrich was legally sufficient notice of the Plan's termination. After the District Court granted summary judgment in favor of J.C. Penney, Mr. Lettrich appealed to this Court. JENNY CRAIG: Reaches Pact With Vegetarians In 'Labeling' Lawsuit ---------------------------------------------------------------- The Superior Court of the State of California, San Diego County announced that a preliminary settlement has been reached in the lawsuit brought against Jenny Craig International, Inc. et al., on behalf of Mohini Sarin, Shobhana Sarin, and other vegetarians who purchased "Vegetarian" or "Meatless" Sample Packages from Jenny Craig, or any item listed on Jenny Craig's "Vegetarain" or "Meatless" Menu, during the period January 1, 1998 to present. The lawsuit alleges that Jenny Craig improperly labeled certain food products as "vegetarian" or "meatless". Plaintiffs allege that this practice constituted an unfair, unlawful, or fraudulent business practice, deceptive trade practice, and false and misleading advertising. Pursuant to the settlement, Jenny Craig will: (1) reformulate certain products so that effective May 2004, the products on the "Meatless" Menu will be free of certain enzymes and other ingredients that may, in some cases, be derived from butchered animals; (2) starting in May 2004, offer to clients who introduce themselves as vegetarians, and who object to consuming animal gelatin, an alternative source of vitamins, and; (3) offer a coupon in the vegetarian publication for a 25% discount on any one-time food purchase between $50 and $100 for all current or returning customers. A final settlement hearing will be held on February 27, 2004. For more information, contact Elizabeth S. Balfour, by Mail: 12544 High Bluff Drive, Suite 300, San Diego, CA 92130-3051. MARTHA STEWART: Judge Seats 12-Member Jury For Securities Trial --------------------------------------------------------------- U.S. District Judge Miriam Goldman Cedarbaum has seated the 12- member jury in the Martha Stewart criminal trial, after days of questioning, Reuters reports. The jury, composed of eight women and four men, will now sit behind closed doors as the parties in the suit try to weed out those with strong biases. Six alternates were also selected. Among the members of the jury were a minister who counsels married couples, a computer technician and a pharmacist born in Uganda. Also included are a translator, a woman who recently sued her dry cleaner for damages over an antique dress, an events planner whose husband knows high-profile technology analyst Mary Meeker, and a man who blames the Enron scandal for losses in his mutual fund. They will decide whether the lifestyle trendsetter and her former Merrill Lynch & Co. broker Peter Bacanovic obstructed an investigation and lied to investigators with regard to her sale of shares of ImClone Systems stock just before ImClone shares dropped on news that the FDA had rejected a key drug application. ImClone founder Sam Waksal is Ms. Stewart's friend. Judge Cedarbaum, just before impaneling the jury, issued an order blocking Ms. Stewart's defense team from arguing that she is being prosecuted because of her celebrity and that she was exercising her right to free speech when she publicly proclaimed her innocence. The judge, in a further blow to the defense team, also said Ms. Stewart's lawyers cannot ask jurors to speculate why prosecutors did not bring insider trading charges against Ms. Stewart. Lawyers were expected to make opening statements on Tuesday in the highly anticipated trial, which will be held four days a week and will likely last a month, Reuters reports. The third witness on their list is also one of the most crucial; Douglas Faneuil, Mr. Bacanovic's former assistant at Merrill Lynch. Mr. Faneuil, who could take the stand as early as this week, has pleaded guilty in the case and is cooperating with prosecutors. He is expected to contradict Ms. Stewart and Mr. Bacanovic about the reasons behind the sale of ImClone stock when he takes the stand. MASSACHUSETTS: High Court Refuses Injunction To Stop MCAS Exam -------------------------------------------------------------- The Supreme Judicial Court in Massachusetts denied a request for an injunction to stop the state from giving the Massachusetts Comprehensive Assessment System (MCAS) exam, pending the outcome of a class action filed against it, the Boston Globe reports. The suit, filed on behalf of several students, alleges the test unfairly discriminates against minority, special education, and other students who have not been adequately prepared for the exam. The plaintiffs seek to have the test abolished. The court ruled that an injunction "would undermine educator accountability and hinder education reform." The ruling, however, did not faze the plaintiffs' lawyers, who said the ruling was a minor setback. The ruling only dealt with a small portion of the case, and lawyers for the students told the Globe they are not abandoning their efforts to have the MCAS declared unconstitutional. "The case is very much alive," attorney David Godkin told the Globe. "The plaintiffs fully intend to press forward with all their claims that the test has and continues to violate the constitutional rights of students." Meanwhile, state officials are hailing the decision as a sign of more favorable rulings for MCAS. "This historic decision ensures that no student will ever again graduate from a Massachusetts public school without the fundamental skills needed to succeed in this country," state education Commissioner David P. Driscoll said in a statement, The Globe reports. The High court also rejected the plaintiffs' appeal of a lower court's April 2003 decision, refusing to stop the state Department of Education from denying diplomas to seniors who have not passed the 10th-grade exam. The plaintiffs argued that officials are violating the intent of the 1993 Education Reform Act because the test focuses too narrowly on English and math. The High Court ruled that MCAS legislation gave state officials discretion to phase in subjects such as history and science "in a reasonable manner and on a reasonable timetable." In addition, the ruling said, state officials "could properly conclude that a student should have competence in `reading, writing, and arithmetic' before being tested on competence in science, history, and other areas." The lawsuit was filed in U.S. District Court in Springfield in September 2002 but has since moved back and forth between state and federal courts, the Globe reports. In January last year, after a federal judge said the suit centered on issues of state law, the case was refiled in Suffolk Superior Court with appeals made in the SJC. Yesterday, judges strongly agreed with the original rulings, saying "the plaintiffs have not shown that there is a likelihood of success" of the lawsuit based on the evidence given to the courts. MASTERCARD: Wal-Mart Stores To Stop Accepting Firm's Debit Cards ---------------------------------------------------------------- Retail giant Wal-Mart Stores will no longer accept signature debit cards from Mastercard, in response to an antitrust class action filed against the card company that was settled in June, The Saratogian reports. Wal-Mart initiated the suit, on behalf of several merchants. The merchants alleged that they did not want to accept consumers' MasterCard or Visa-branded signature-based debit cards, which do not require a PIN, and that the associations violated the antitrust laws by tying acceptance of debit to acceptance of credit. Mastercard agreed to settle the suit by paying $100 million a year for 10 years into a settlement fund for eligible merchants, except for the first year when the payment will be $125 million, according to MasterCard's Web site. "The fees charged by MasterCard for its signature debit are simply too high, which led us to eliminate this payment option rather than pass these costs on to our customers," Mike Cook, Wal-Mart's vice president and assistant treasurer, said in a news release, The Saratogian reports. The PIN-based cards, such as ones banks issue, will still be accepted along with the regular MasterCard credit card. MasterCard General Counsel Noah J. Hanft has called the settlement fair. Barbara Coleman, a MasterCard spokeswoman, said Wal-Mart is the only company to stop the use to the signature debit, The Saratogian reports. MICROSOFT CORPORATION: To Settle NC Suit With $89.2M In Vouchers ---------------------------------------------------------------- Microsoft Corporation reached an $89.2 million settlement for the class action, styled "MJM Investigations, Inc. v. Microsoft," alleging violations of North Carolina's antitrust and unfair competition laws, the Knight Ridder / Tribune Business News reports. The suit alleges that the Company violated state laws to maintain a monopoly for certain software. As a result, it overcharged customers who purchased its MS-DOS, Windows, Word, Excel and Office software. The suit was filed on behalf of businesses or individuals who purchased the company's software between December 9, 1995 and December 31, 2002. Under the settlement, customers will receive $5 or $10 vouchers for each Microsoft software license they purchased over the six- year period. Customers with five or fewer licenses need not submit documentation of their purchases. The vouchers will entitle customers to be reimbursed for purchases of computer hardware or software made by any manufacturer, including desktop, laptop or tablet computers, printers, scanners, monitors and keyboards. Businesses or individuals therefore will spend their own money on computer products, and then mail a proof of purchase with the vouchers to a settlement administrator, who sends back a check for the amount of money spent. The purchases must be made after September 19, 2003 and the reimbursement request postmarked by July 26, 2008. Class action members will receive $10 for each Microsoft Windows 95, 98 or Millennium Edition operating system software license and $5 for each Microsoft Office, Word or Excel software license. Members of the suit also can receive $5 for each operating system software license for Microsoft MS-DOS, Windows versions 1.0 to 3.2, Windows NT Workstation or Windows 2000 Professional. Microsoft allowed a wide timeframe for purchases to try to preempt new, similar lawsuits, Kieran Shanahan, lead plaintiff's counsel in the case told the Tribune Business News. The wide window also has a practical effect for consumers. "It certainly should increase individual claims, making it more worthwhile for individuals to submit claims," he said. A court-authorized notice was mailed to potential class members last week, but anyone who fits the eligibility requirements can be a claimant. Eligible participants must have purchased their Microsoft software from any source except directly from Microsoft. Eligible consumers include those who bought software by mail, Internet or in a store, for use in North Carolina. Customers also are part of the class if Microsoft software was already installed on computers they purchased. Potential class members must submit claim forms by July 26. Vouchers will be mailed out "shortly after" the North Carolina Business Court grants final approval of the settlement and any appeals are resolved, according to the notice. The court is scheduled to consider final approval of the settlement at a hearing on May 27. MISSISSIPPI: Appeals Court Upholds Desegregation Pact Approval -------------------------------------------------------------- The United States Fifth Circuit Court of Appeals upheld a $503 million desegregation case settlement. The suit accused the state of Mississippi of neglecting its historically black universities for decades, the Minneapolis Star Tribune states. The appeals court upheld a lower federal court's decision saying that it did not abuse its discretion in approving the agreement covering Jackson State, Alcorn State and Mississippi Valley State universities. The settlement has been criticized for being "inadequate to upgrade programs at the school," and for posing stiffer admission requirements and a condition that 10 percent of the schools' enrollment be non-black. The federal panel wrote that the settlement contained "generous" funding for academic programs and that settling the case now would avoid potentially protracted and costly litigation. Further, "the 10 percent threshold will provide historically black universities with a legitimate incentive to recruit and to attract other-race students," the panel wrote. "The settlement is educationally sound and the results will be carefully monitored for compliance and accountability," Mississippi Commissioner of Higher Education David Potter told the Star-Tribune. Alvin Chambliss Jr., an attorney for opposing plaintiffs, who included alumni and faculty of the schools, said the settlement does not provide enough money for the establishment of professional programs, without which black colleges will die, he told the Star-Tribune. He said the matter might be appealed to the Supreme Court. Armand Derfner, an attorney representing other class action plaintiffs who supported the settlement of the 29-year-old case, said: "We agree that the settlement is not all it could be, but it's a floor from which we hope we can make further progress." PUTNAM FUNDS: Arbitrator To Decide On Compensation For Ex-Chief --------------------------------------------------------------- Marsh & McLennan Cos., the largest insurance broker in the world said, in a regulatory filing, that an arbitrator will determine whether Lawrence J. Lasser, the former chief executive of scandal-plagued mutual fund unit Putnam Investments, should be compensated following his dismissal by the company. Investigations by the U.S. Securities and Exchange Commission and state regulators in New York and Massachusetts into so- called "market timing" trading at Putnam were made public in late October 2003, and just a week later, Lasser -Putnam's long- time president and chief executive officer, stepped down in favor of a new management team. Charles E. "Ed" Haldeman, recently a senior managing director and co-head of investments at Putnam, succeeded Lasser. According to an 8k filed by Marsh with the SEC, a hearing has already been initiated "with respect to the amount of money, if any, owed to Mr. Lasser in connection with his termination from Putnam." According to a 2001 filing, Lasser would be entitled to as much $31 million if he were to retire from the company. Marsh spokeswoman Barbara Perlmutter said the company could not comment on pending arbitration. Putnam reached an agreement in November with the SEC over allegations the firm allowed some favored customers, and its own fund managers, to take part in market timing of Putnam mutual funds. According to terms of the agreement, Putnam neither confirmed nor denied the SEC's findings but agreed not to contest them. The SEC has yet to say what penalties or other monetary relief it will demand of the firm. Regulators in Massachusetts and New York have said they will continue their investigation into the allegations. Last month, the California State Teachers' Retirement System, the nation's third-largest pension fund, voted to rescind Putnam's agreement to manage a $312 million large-cap growth account within CalSTRS' overall $45 billion U.S. equity portfolio. The teachers' fund joined the California Public Employees' Retirement System--the nation's largest pension fund- -and state pension funds in Pennsylvania, Iowa, Massachusetts, New York, Vermont and Rhode Island, as well as private companies such as Wal-Mart Stores Inc., in withdrawing funds from Putnam. The firm had been the fifth-largest mutual-fund manager in the United States. The firm is also facing at least three class action lawsuits filed by current or former shareholders of Marsh & McLennan over the market timing allegations. Separately, the company announced on January 27 that they would begin limiting expense ratios on all of their funds to below the industry averages in the respective peer groups, a standard currently met by 95% of Putnam's $162 billion in mutual fund assets. The company also announced it would reduce sales charges on 'A' shares and restrict the maximum allowable purchases of 'B' shares, as well as capping expenses for six international and global funds. "We view these steps taken by Putnam and its new CEO...as positive and proactive for the franchise," equity analyst Jay Gelb of Prudential Equity Group Inc. wrote of the changes. "The impact to Putnam from market timing allegations has been disappointing, but the changes put forth by the new management team should lead to improved corporate governance practices." On the afternoon on Jan. 27, shares of Marsh & McLennan were trading at $47.43, down 1.78% from their previous close. SCG MIYAIRI: Recalls Liquid Propane OPD Valves For Fire Hazard -------------------------------------------------------------- SCG Miyairi (Thailand) Company, LTD, of Thailand, in cooperation with the U.S. Consumer Product Safety Commission (CPSC), is recalling 21,000 SCG Liquid Propane Overfill Protection Devices (OPD valves) for serious fire/ burn hazard. When the cylinder on the gas grill is filled to capacity and exposed to increased temperatures, liquid propane instead of gas vapor can leak out and cause the gas regulator valve to freeze. When the regulator valve thaws, if it has not been turned off, gas will flow to the grill. The resulting build-up of gas in the grill can pose a serious fire hazard to consumers. SCG has received five reports involving leaks from the OPD valve, though no injuries have been reported. The recalled SCG Overfill Prevention Devices (OPD) have "V5QA OPD" engraved on the body and handle and either "DT 3.8" or "DT 3.8A" printed on one side of the wrench pad and "07-02," "08- 02," or "10-98" printed on the other side. The valves are installed on 20-pound liquid propane gas cylinders manufactured by the Sahamitr Pressure Container Public Co. Ltd. in Thailand. The cylinders are marked "SMPC DOT-4BA240" and have a serial number in the range of 375201 to 396800. There is no hazard with the cylinders. Sold at: Department and hardware stores nationwide sold the gas cylinders with the recalled OPD valves from August 2002 through August 2003 for about $30. Some cylinders also were sold with certain Sunbeam gas grills. Consumers are urged to stop using the gas cylinders immediately and contact the company. SCG will identify, for callers who have one of the recalled units, a local LP gas exchange center which will replace the cylinder with one that has a new OPD valve. Do not take the LP gas cylinder to an LP gas refiller. Consumers should not attempt to remove the OPD or gas valve themselves. For more information, contact SCG Miyairi at (800) 636-9346 between 8 a.m. and 8 p.m. ET Monday through Friday or visit their Web site at http://www.scgmiyairi.com. TELXON CORPORATION: Fairness Hearing Set February 12, 2004 in OH ---------------------------------------------------------------- The United States District Court for the Northern District of Ohio, Eastern Division announced that a settlement hearing will be held before the Honorable Kathleen O'Malley in the United States Courthouse, Courtroom 16A, 801 W. Superior Ave., Cleveland, Ohio, 44113-1840 at 4:00 p.m., on February 12, 2004, in regards the Proposed Settlement, of at least $37,000,000, of a class action lawsuit, on behalf of all persons who purchased Telxon Corp. securities, including common stock, call options, notes and debentures, and sellers of put options, during the period from May 21, 1996 through February 23, 1999, inclusive, against Telxon Corporation, and: (1) Frank E. Brick, and (2) Kenneth W. Haver For more information, contact Counsel for Plaintiff Zwerling, Schachter & Zwerlling, LLP by Mail: 845 Third Avenue, 6th Floor, New York, NY 10022. TV AZTECA: Shareholders File Securities Fraud Lawsuit in S.D. NY ---------------------------------------------------------------- Mexican broadcaster TV Azteca SA denied charges in the several securities class action filed against it in the United States District Court in the Southern District of New York, under federal judge John Sprizzo, Dow Jones Business News reports. Three American law firms have filed the suits, seeking damages for alleged false and misleading statements the company made to investors. The firms that have filed suits are: Charles Piven; Cauley Geller Bowman & Rudman LLP; and Schiffrin & Barroway LLP. The suits allege that inadequate disclosure of a series of debt transactions linked to wireless phone unit Unefon SA in 2003 artificially inflated TV Azteca's share price. The suit was filed on behalf of purchasers of TV Azteca, S.A. de C.V. publicly traded securities during the period between October 6, 2003 and January 7, 2004, inclusive, an earlier Class Action Reporter story (January 27,2004) states. "The company denies any wrongdoing and intends to vigorously defend these actions," TV Azteca said in a filing with the Mexican Stock Exchange, Dow Jones reports. The Company added that it expects the suits to be consolidated into one in the coming weeks, and that the court should designate one firm to represent the shareholders. U.S. and Mexican regulators are also looking into the transactions to determine whether TV Azteca chairman Ricardo Salinas Pliego and Unefon chairman Moises Saba should have disclosed more details to investors. TV Azteca acknowledged this month that Salinas Pliego and Saba were the unnamed investors who bought $325 million in Unefon debt owed to Canadian supplier Nortel Networks last year. They paid $107 million for the obligations, which they later sold back to Unefon at face value. The company said Tuesday that questions related to the class action suits can be addressed to its lawyer Richard Spehr, at Mayer, Brown, Rowe & Maw LLP in New York. VANS INC.: Labels Suit as "Factually Incorrect, Without Merit" -------------------------------------------------------------- The securities class action filed against Vans, Inc. in the United States District Court for the Central District of California is "factually incorrect and without merit," Company general counsel Craig Gosselin stated, the Pasadena Star- Reporter states. The suit names as defendants the athletic apparel company, one of its current officers and a former officer. The class action was commenced on behalf of an institutional investor on behalf of purchasers of Vans Inc. common stock during the period between March 24, 1999 and May 23, 2002. The suit alleges the Company filed false and misleading statements that inflated the market price of its securities. Beginning in 1998, Vans allegedly posted product orders to three distribution centers - Unique Services, Pronto Services and Special Dispatcher - even though orders for the merchandise were never really placed. The orders allegedly were made to inflate the company's EPS, or earnings per share, on a quarterly basis. "The complaint says we shipped products that we didn't have customers for, parked it at a third-party distribution and posted the revenue," Mr. Gosselin told the Star-Reporter. "We believe this is factually inaccurate in a number of ways." Vans, which received the complaint Friday night, intends to bring a motion to dismiss the suit as soon as possible, he added. Attorneys with Milberg Weiss Bershad Hynes & Lerach LLP and the law offices of Charles J. Piven P.A., which are representing shareholders in the action, could not be reached Monday, despite repeated attempts, the Star-Reporter states. WORLDCOM INC.: Ex-Finance Chief's Trial Postponed To April 7 ------------------------------------------------------------ The United States District Court in New York postponed the trial of former WorldCom, Inc. finance chief Scott Sullivan to April 7, granting a request by his defense team for more time to prepare, the Associated Press reports. Mr. Sullivan faces charges of ordering WorldCom accountants to move operating expenses off the books so the company could appear to turn a profit when it was losing money. The telecommunications giant collapsed into bankruptcy in 2002, and investigators have since uncovered $11 billion in accounting irregularities, AP reports. The trial originally had been set for February 4. New Securities Fraud Cases AMERICAN BUSINESS: Brian Felgoise Launches Securities Suit in PA ---------------------------------------------------------------- The Law Offices of Brian M. Felgoise, P.C. initiated a securities class action in the United States District Court for the Eastern District of Pennsylvania, on behalf of shareholders who acquired American Business Financial Services, Inc. securities between January 27, 2000 and June 25, 2003, inclusive, against the company and certain key officers and directors. The action charges that defendants violated the 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 Brian M. Felgoise, by Mail: 261 Old York Road, Suite 423, Jenkintown, Pennsylvania, 19046, by Phone: (215) 886-1900, or by E-mail: securitiesfraud@comcast.net. BIOPURE CORPORATION: Lead Plaintiff Motion Deadline Set March 1 --------------------------------------------------------------- The law firm of Pomerantz Haudek Block Grossman & Gross LLP announced that the deadline to seek appointment by the court as one of the lead plaintiffs in a class action lawsuit against Biopure Corporation and three of the Company's senior officers, on behalf of all persons or entities who purchased the securities of Biopure during the period between March 17, 2003 and December 24, 2003, inclusive, is set for Monday, March 1. The lawsuit charges that Biopure issued a number of positive statements regarding the progress of Biopure's application for regulatory approval to market Hemopure in the United States for patients undergoing orthopedic surgery, which was submitted to the U.S. Food and Drug Administration. It is alleged that by the beginning of the Class Period, the FDA had informed defendants of flaws in the Hemopure application which put defendants on notice that FDA approval was in serious doubt, including citing "safety concerns" arising from adverse clinical data submitted as part of the Company's application. Yet, before defendants disclosed these adverse facts, they conducted at least two offerings of Biopure common stock and generated millions of dollars in proceeds. In addition, certain high-level Biopure insiders sold hundreds of thousands of Biopure common shares at artificially inflated prices. On December 24, 2003, after the Securities & Exchange Commission threatened civil litigation, defendants stunned the market by announcing that, in fact, the FDA had halted further clinical trials of Hemopure due to safety concerns. Defendants also disclosed that the commercial release of Hemopure in the United States would be delayed beyond mid-2004. As a result of these disclosures, Biopure common stock lost 16% of their value on December 26, 2003, to close at $2.43 per share. This was a decline of more than 239% from the stock's Class Period high of $8.25 per share, reached on or about August 21, 2003. For more information, contact Andrew G. Tolan, by Phone: 888-476-6529 (or (888) 4-POMLAW) toll free, or by E-mail: agtolan@pomlaw. BIOPURE CORPORATION: Kaplan Fox Commences Securities Suit in MA --------------------------------------------------------------- Kaplan Fox initiated a class action lawsuit in the United States District Court for the District of Massachusetts, on behalf of all persons or entities who purchased or acquired the common stock of Biopure Corporation between March 17, 2003 through December 24, 2003 inclusive, against Biopure Corporation, and: (1) Thomas A. Moore, (2) Carl W. Rausch, and (3) Ronald F. Richards The complaint charges Biopure and certain of its officers and directors with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint alleges that during the Class Period, defendants issued a series of false and misleading statements and filed periodic reports with the Securities and Exchange Commission. The complaint alleges that during the class period defendants issued numerous positive statements about the progress of its application to the U.S. Food and Drug Administration seeking regulatory approval to market Hemopure in the United States. However, as early as March 2003, the FDA had informed defendants that proposed clinical trials could not go forward because of "safety issues." Accordingly, defendants knew that the FDA approval was in jeopardy. On December 24, 2003, the last day of the class period, defendants shocked the market by issuing a press release after the close of the market that Biopure had received a Wells Notice from the SEC, indicating the staff's preliminary decision to recommend that the Commission bring civil injunctive proceedings against the company and that the FDA had halted further clinical trials of Hemopure due to safety concerns. Defendants also stated that they would respond to the FDA's concerns by mid- 2004, thereby delaying the commercial release of Hemopure in the United States, if at all, beyond the mid-2003 target date defendants had previously stated. The market reacted swiftly and dramatically to these disclosures. On December 26, 2003, the price per share for Biopure common stock plummeted 13.83% from its previous trading day's closing price to close at $2.43 per share, a decline of over 70.5% from its class period high of $8.25 per share on or about August 21, 2003. For more information, contact us by E-mail: mail@kaplanfox.com, or visit the firm's Website: http://www.kaplanfox.com. DEUTSCHE BANK: Cauley Geller Launches Securities Suit in S.D. NY ---------------------------------------------------------------- The Law Firm of Cauley Geller Bowman & Rudman, LLP initiated a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of all purchasers of shares of the Scudder Family of Mutual Funds which are managed by Deutsche Bank AG during the period between January 22, 1999 and January 12, 2004, inclusive. The Funds, and the symbols for the respective Funds named below, are as follows: (1) Scudder 21st Century Growth Fund (Sym: SCNAX, SCNBX, SCNCX) (2) Scudder Aggressive Growth Fund (Sym: KGGAX, KGGBX, KGGCX) (3) Scudder Blue Chip Fund (Sym: KBCAX, KBCBX, KBCCX) (4) Scudder Capital Growth Fund (Sym: SDGAX, SDGBX, SDGCX, SDGRX, SDGTX) (5) Scudder Dynamic Growth Fund (Sym: KSCAX, KSCBX, KSCCX) (6) Scudder Flag Investors Communications Fund (Sym: TISHX, FTEBX, FTICX, FLICX) (7) Scudder Global Biotechnology Fund (Sym: DBBTX, DBBBX, DBBCX) (8) Scudder Gold & Precious Metals Fund (Sym: SGDAX, SGDBX, SGDCX) (9) Scudder Growth Fund (Sym: KGRAX, KGRBX, KGRCX) (10) Scudder Health Care Fund Sym: SUHAX, SUHBX, SUHCX) (11) Scudder Large Company Growth Fund (Sym: SGGAX, SGGBX, SGGCX, SCQRX) (12) Scudder Micro Cap Fund (Sym: SMFAX, SMFBX, SMFCX, MGMCX, MMFSX) (13) Scudder Mid Cap Fund (Sym: SMCAX, SMCBX, SMCCX, SMCRX, BTEAX, BTCAX) (14) Scudder Small Cap Fund (Sym: SSDAX, SSDBX, SSDCX, SSDRX, BTSCX) (15) Scudder Strategic Growth Fund (Sym: SCDAX, SCDBX, SCDCX, SCDIX) (16) Scudder Technology Fund (Sym: KTCAX, KTCBX, KTCCX, KTCIX) (17) Scudder Technology Innovation Fund (Sym: SRIAX, SRIBX, SRICX) (18) Scudder Top 50 US Fund (Sym: FAUSX, FBUSX, FCUSX) (19) Scudder Contrarian Fund (Sym: KDCAX, KDCBX, KDCCX, KDCRX) (20) Scudder-Dreman Financial Services Fund (Sym: KDFAX, KDFBX, KDFCX) (21) Scudder-Dreman High Return Equity Fund (Sym: KDHAX, KDHBX, KDHCX, KDHRX, KDHIX) (22) Scudder-Dreman Small Cap Value Fund (Sym: KDSAX, KDSBX, KDSCX, KDSRX, KDSIX) (23) Scudder Flag Investors Equity Partners Fund (Sym: FLEPX, FEPBX, FEPCX, FLIPX) (24) Scudder Growth & Income Fund (Sym: SUWAX, SUWBX, SUWCX, SUWRX, SUWIX) (25) Scudder Large Company Value Fund (Sym: SDVAX, SDVBX, SDVCX) (26) Scudder-RREEF Real Estate Securities Fund (Sym: RRRAX, RRRBX, RRRCX, RRRSX, RRRRX) (27) Scudder Small Company Stock Fund (Sym: SZCAX, SZCBX, SZCCX) (28) Scudder Small Company Value Fund (Sym: SAAUX, SABUX, SACUX) (29) Scudder Tax Advantaged Dividend Fund (Sym: SDDAX, SDDBX, SDDCX, SDDGX) (30) Scudder Flag Investors Value Builder Fund (Sym: FLVBX, FVBBX, FVBCX, FLIVX) (31) Scudder Focus Value+Growth Fund (Sym: KVGAX, KVGBX, KVGCX) (32) Scudder Lifecycle Mid Range Fund (Sym: BTLRX) (33) Scudder Lifecycle Long Range Fund (Sym: BTILX, BTAMX) (34) Scudder Lifecycle Short Range Fund (Sym: BTSRX) (35) Scudder Pathway Conservative Portfolio (Sym: SUCAX, SUCBX, SUCCX) (36) Scudder Pathway Growth Portfolio (Sym: SUPAX, SUPBX, SUPCX) (37) Scudder Pathway Moderate Portfolio (Sym: SPDAX, SPDBX, SPDCX) (38) Scudder Retirement Fund Series V (Sym: KRFEX) (39) Scudder Retirement Fund Series VI (Sym: KRFGX) (40) Scudder Retirement Fund Series VII (Sym: KRFGX) (41) Scudder Target 2010 Fund (Sym: KRFBX) (42) Scudder Target 2012 Fund (Sym: KRFCX) (43) Scudder Target 2013 Fund (Sym: KRFDX) (44) Scudder Total Return Fund (Sym: KTRAX, KTRBX, KTRCX, KTRGX) (45) Scudder Emerging Markets Growth Fund (Sym: SEKAX, SEKBX, SEKCX) (46) Scudder Emerging Markets Income Fund (Sym: SZEAX, SZEBX, SZECX) (47) Scudder European Equity Fund (Sym: DBEAX, DBEBX, DBECX, MEUEX, MEUVX) (48) Scudder Global Fund (Sym: SGQAX, SGQBX, SGQCX, SGQRX) (49) Scudder Global Bond Fund (Sym: SZGAX, SZGBX, SZGCX) (50) Scudder Global Discovery Fund (Sym: KGDAX, KGDBX, KGDCX) (51) Scudder Greater Europe Growth Fund (Sym: SERAX, SERBX, SERCX) (52) Scudder International Fund (Sym: SUIAX, SUIBX, SUICX) (53) Scudder International Equity Fund (Sym: DBAIX, DBBIX, DBCIX, BEIIX, BEITX, BTEQX) (54) Scudder International Select Equity Fund (Sym: DBISX, DBIBX, DBICX, DBITX, MGINX, MGIVX, MGIPX) (55) Scudder Japanese Equity Fund (Sym: FJEAX, FJEBX, FJECX) (56) Scudder Latin America Fund (Sym: SLANX, SLAOX, SLAPX) (57) Scudder New Europe Fund (Sym: KNEAX, KNEBX, KNECX, KNEIX) (58) Scudder Pacific Opportunities Fund (Sym: SPAOX, SBPOX, SPCCX) (59) Scudder Worldwide 2004 Fund (Sym: KWIVX) (60) Scudder Fixed Income Fund (Sym: SFXAX, SFXBX, SFXCX, SFXRF, MFINX, MFISX) (61) Scudder High Income Plus Fund (Sym: MGHYX, MGHVX, MGHPX) (62) Scudder High Income Fund (Sym: KHYAX, KHYBX, KHYCX, KHYIX) (63) Scudder High Income Opportunity Fund (Sym: SYOAX, SYOBX, SYOCX) (64) Scudder Income Fund (Sym: SZIAX, SZIBX, SZICX) (65) Scudder PreservationPlus Fund (Sym: BTPIX, BTPSX) (66) Scudder PreservationPlus Income Fund (Sym: PPIAX, PPLCX, DBPIX) (67) Scudder Short Term Bond Fund (Sym: SZBAX, SZBBX, SZBCX (68) Scudder Short Duration Fund (Sym: SDUAX, SDUBX, SDUCX, MGSFX) (69) Scudder Strategic Income Fund (Sym: KSTAX, KSTBX, KSTCX) (70) Scudder US Government Securities Fund (Sym: KUSAX, KUSBX, KUSCX) (71) Scudder California Tax-Free Income Fund (Sym: KCTAX, KCTBX, KCTCX) (72) Scudder Florida Tax-Free Income Fund (Sym: KFLAX, KFLBX, KFLCX) (73) Scudder High Yield Tax-Free Fund (Sym: NOTAX, NOTBX, NOTCX, NOTIX) (74) Scudder Intermediate Tax/AMT Free Fund (Sym: SZMAX, SZMBX, SZMCX) (75) Scudder Managed Municipal Bond Fund (Sym: SMLAX, SMLBX, SMLCX, SMLIX) (76) Scudder Massachusetts Tax-Free Fund (Sym: SQMAX, SQMBX, SQMCX) (77) Scudder Municipal Bond Fund (Sym: MGMBX, MMBSX) (78) Scudder New York Tax-Free Income Fund (Sym: KNTAX, KNTBX, KNTCX) (79) Scudder Short Term Municipal Bond Fund (Sym: SRMAX, SRMBX, SRMCX, MGSMX, MSMSX) (80) Scudder EAFE r Equity Index Fund (Sym: BTAEX, BTIEX) (81) Scudder Equity 500 Index Fund (Sym: BTIIX) (82) Scudder S&P 500 Stock Fund (Sym: KSAAX, KSABX, KSACX) (83) Scudder Select 500 Fund (Sym: OUTDX, OUTBX, OUTBX, OUTRX (84) Scudder US Bond Index Fund (Sym: BTUSX ) (85) Scudder Cash Reserves Fund The complaint charges Deutsche Bank, Scudder Investments, Deutsche Investment Management Americas Inc., Deutsche Asset Management, Inc., the Fund Registrants, Scudder Funds, and the Doe Defendants with violations of the Securities Act of 1933, the Securities Exchange Act of 1934, among other claims, and for common law breach of fiduciary duties. The Complaint alleges that during the Class Period the defendants engaged in illegal and improper trading practices, in concert with certain institutional traders, which caused financial injury to the shareholders of the Scudder Mutual Funds. According to the Complaint, the Defendants surreptitiously permitted certain favored investors, including the Doe Defendants, to illegally engage in "timing" of the Scudder Mutual Funds whereby these favored investors were permitted to conduct short-term, "in and out" trading of mutual fund shares, despite explicit restrictions on such activity in the Scudder Mutual Funds' prospectuses. For more information, contact Samuel H. Rudman, or David A. Rosenfeld, Client Relations Department: Jackie Addison, Heather Gann or Chandra West, by Mail: P.O. Box 25438, Little Rock, AR 72221-5438, by Phone: 1-888-551-9944 toll free, Fax: 1-501-312-8505, or E-mail: info@cauleygeller.com. MICROMUSE INC.: Charles Piven Lodges Securities Suit in N.D. CA --------------------------------------------------------------- The Law Offices Of Charles J. Piven, P.A. initiated a securities class action in the United States District Court for the Northern District of California against Micromuse, Inc. and certain of its senior executive officers, on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of Micromuse, Inc. between January 20, 2000 and December 29, 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, P.A. by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by Phone: 410/986-0036, or by E-mail: hoffman@pivenlaw.com. NETWORK ENGINES: Schatz & Nobel Lodges Securities Lawsuit in MA --------------------------------------------------------------- Schatz & Nobel initiated a lawsuit seeking class action status in the United States District Court for the District of Massachusetts, on behalf of all persons who purchased the securities of Network Engines, Inc. from November 6, 2003 through December 10, 2003, inclusive. The Complaint alleges that Network Engines, a provider of server appliance hardware and custom integration services, and certain of its officers and directors, knew but failed to disclose that Network Engines was in the process of renegotiating its distribution agreement with EMC Corporation, and that in connection, EMC was demanding price reductions which would negatively effect Network Engines' future financial results. Nevertheless, defendants continued to issue positive statements emphasizing the Company's strong financial performance and its purportedly successful relationship with its largest customer, EMC. On December 11, 2003, Network Engines announced, inter alia, that it had renegotiated its distribution contract with EMC and that, as amended the agreement would have a negative impact on Network Engines. On this news, shares of Network Engines fell $3.92 per share or 39% to close at $6.10 per share, and have continued to decline since that time. For more information, contact Nancy A. Kulesa, by Phone: (800) 797-5499, by E-mail: sn06106@aol.com, or visit the firm's Website: http://www.snlaw.net. REDBACK NETWORKS: Schatz & Nobel Launches Securities Suit in CA --------------------------------------------------------------- Schatz & Nobel, LLP initiated a lawsuit seeking class action status in the United States District Court for the Northern District of California, on behalf of all persons who purchased the publicly traded securities of Redback Networks, Inc. from April 12, 2000 through October 10, 2003, inclusive. Also included are all those who acquired Redback's shares through its acquisitions of Abatis Systems Corporation and Merlin Systems, Inc. The Complaint alleges that certain of Redback's officers and directors issued materially false and misleading statements concerning Redback's financial condition. Specifically, while defendants were touting Redback's relationship with Qwest Communications International, they knew, but failed to disclose, that Qwest had only agreed to purchase large quantities of Redback products it did not want or need because Qwest executives were receiving shares of Redback stock; that Redback was giving shares of its stock to Qwest insiders in exchange for sales contracts from Qwest; and that Qwest had no obligation to make further purchases from Redback. During the Class Period, while Redback traded as high as $179 per share, defendants sold over $142 million of their own stock. On October 10, 2003, Redback filed a form S-4 with the SEC that stated the SEC was investigating various transactions involving Qwest, including transactions between Redback and Qwest. On November 3, 2003, Redback filed for Chapter 11 bankruptcy protection. For more information, contact Nancy A. Kulesa, by Phone: (800) 797-5499, by E-mail: sn06106@aol.com, or visit the firm's Website: http://www.snlaw.net. ROYAL DUTCH: Wechsler Harwood Files Securities Fraud Suit in NJ --------------------------------------------------------------- The law firm of Wechsler Harwood LLP initiated a class action lawsuit in the United States District Court for the District of New Jersey, on behalf of persons or entities who purchased or otherwise acquired the securities, including the common stock traded in overseas markets and the American Depository Receipts trading on the NYSE, of Royal Dutch Petroleum Company and/or The Shell Transport and Trading Company, PLC between December 3, 1999 and January 9, 2004, inclusive, against defendants Royal Dutch, Shell Transport, and: (1) Shell Petroleum N.V., (2) the Shell Petroleum Limited, (3) Maarten van der Bergh, (4) Judy Boynton, (5) Malcolm Brinded, (6) S.L. Miller, (7) Harry J.M. Roels, (8) Paul D. Skinner, (9) M. Moody-Stuart, (10) Jeroen van der Veer, and (11) Philip R. Watts The allegations are that defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission, and all amendments thereto, by issuing a series of material misrepresentations to the market during the Class Period. In particular, defendants deliberately violated accounting rules and guidelines relating to oil and gas reserves which resulted in a shocking and unprecedented overstatement of oil and gas reserves, the eventual disclosure of which damaged purchasers of Royal Dutch and Shell Transport securities and rocked the investment community. Royal Dutch and Shell Transport had classified and reported, in SEC filings and other public documents, certain reserves as "proved reserves" from a project off the western coast of Australia called the Gorgon Joint Venture, and various projects in Nigeria. In fact, unbeknownst to investors, the reserves did not meet SEC and industry requirements necessary to be classified as "proved," and were improperly reported as proved reserves in Royal Dutch's and Shell Transport's financial reports, thereby materially artificially inflating a key measure of the companies' financial position and competitive standing. As a result of these material misrepresentations, Royal Dutch and Shell Transport's true value in the marketplace was severely overstated and misunderstood. On January 9, 2004, Royal Dutch announced that it was going to write-down its proved oil and gas reserves by 20%, or 3.9 billion barrels, from 19.5 billion barrels to 15.6 billion barrels. The write-down: (i) cut Shell's reserve life from 13.4 years to 10.6 years; (ii) increased its worldwide 5-year average reserve replacement cost per barrel from $5.49 to $12.57 -- $7.06, or 128% greater than the industry average of $5.51; (iii) increased Shell's finding and development costs to $7.90 per barrel -- well above the costs of its competitors; and (iv) reduced Shell's Appraised Net Worth downward by up to 7.1%, or $9.6 billion. Following the announcement, Royal Dutch ADRs fell 7.87% from $52.76 to $48.61 on the NYSE and Royal Dutch ordinary shares fell by 7.10% from the U.S. equivalent of $52.91 to $49.15 on the Amsterdam exchange. Shell Transport ADRs were down 6.96% from $44.81 to $41.69 on the NYSE and Shell Transport ordinary shares were down 6.84% on the London exchange from the U.S. equivalent of $7.36 to $6.86. In addition, Moody's placed the Aaa rating of Royal Dutch and Shell Transport under review for possible downgrade because the write-down materially and adversely affected the companies' reserves-to-debt ratio. Following the belated disclosure, most analysts and commentators concluded that, because of the magnitude of the write-down and the clear SEC and industry guidelines relating to reserve classification, the reserve overstatements could not have been a result of error or accident, but rather, that the reserves were knowingly overstated to preserve the companies' credit rating and to shore up their competitive position. For more information, contact Craig Lowther, Wechsler Harwood Shareholder Relations Department, by Mail: 488 Madison Avenue, 8th Floor, New York, New York 10022, by Phone: (877) 935-7400 toll free, or by E-mail: clowther@whesq.com. SECURITY BROKERAGE: Stull Stull Files Securities Suit in S.D. NY ---------------------------------------------------------------- Stull Stull & Brody, LLP initiated a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of a class consisting of all who purchased or otherwise acquired shares or other ownership units of Alliance Capital Management's AllianceBernstein Family of Mutual Funds and/or Massachusetts Financial Services' Family of Mutual Funds, which is a subsidiary of Sun Life Financial, Inc. between January 1, 2001 and September 30, 2003, inclusive. The Complaint charges that, throughout the Class Period, defendants Security Brokerage, Inc. and Daniel G. Calugar violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that from at least 2001 to September 2003, Calugar, trading through Security Brokerage, engaged in a scheme involving market timing of various mutual funds using investments totaling between $400-$500 million. Market timing refers to the practice of short term buying and selling of mutual fund shares in order to exploit inefficiencies in mutual fund pricing. Most of Calugar's market timing trades were through two mutual fund families: Alliance Capital Management, LP and Massachusetts Financial Services. The Mutual Funds, and the symbols for the respective Funds named below, are as follows: MFS Funds: MFS Capital Opportunities Fund (Nasdaq: MCOFX, MCOBX, MCOCX, MFCRX, MCOTX, EACOX, EBCOX, ECCOX) MFS Core Growth Fund (Nasdaq: MFCAX, MFCBX, MFCCX, MCFRX, MCRRX), MFS Emerging Growth Fund (Nasdaq: MEGRX, MEGBX, MFECX, MFERX, EAGRX, EBEGX, ECEGX) MFS Growth Opportunities Fund (Nasdaq: MGOFX, MGOBX) MFS Large Cap Growth Fund (Nasdaq: MCGAX, MCGBX) MFS Managed Sectors Fund (Nasdaq: MMNSX, MSEBX, MMNCX) MFS Mid Cap Growth Fund (Nasdaq: OTCAX, OTCBX, OTCCX, MMCRX, MCPRX, EAMCX, EBCGX, EGCRX) MFS New Discovery Fund (Nasdaq: MNDAX, MNDBX, MNDCX, MFNRX, MNDRX, EANDX, EBNDX, ECNDX) MFS New Endeavor Fund (Nasdaq: MECAX, MECBX, MECCX, MNERX, MENRX) MFS Research Fund (Nasdaq: MFRFX, MFRBX, MFRCX, MFRRX, MSRRX, EARFX, EBRFX, ECRFX) MFS Strategic Growth Fund (Nasdaq: MFSGX, MSBGX, MFGCX, MSGRX, MSTRX, EASGX, EBSGX, ECSGX) MFS Technology Fund (Nasdaq: MTCAX, MTCBX, MTCCX, MTQRX, MTERX) Massachusetts Investors Growth Stock Fund (Nasdaq: MIGFX, MIGBX, MIGDX, MIGRX, MIRGX, EISTX, EMIVX, EMICX) MFS Mid Cap Value Fund (Nasdaq: MVCAX, MCBVX, MVCCX, MMVRX, MCVRX, EACVX, EBCVX, ECCVX) MFS Research Growth and Income Fund (Nasdaq: MRGAX, MRGBX, MRGCX, MGIRX, MRERX) MFS Strategic Value Fund (Nasdaq: MSVTX, MSVCX, MQSVX, MSVRX, MVSRX, EASVX, EBSVX, ECSVX) MFS Total Return Fund (Nasdaq: MSFRX, MTRBX, MTRCX, MFTRX, MTRRX, EATRX, EBTRX, ECTRX) MFS Union Standard Equity Fund (Nasdaq: MUEAX, MUSBX, MUECX) MFS Utilities Fund (Nasdaq: MMUFX, MMUBX, MMUCX, MMURX, MURRX) MFS Value Fund (Nasdaq: MEIAX, MFEBX, MEICX, MFVRX, MVRRX, EAVLX, EBVLX, ECVLX) Massachusetts Investors Trust (Nasdaq: MITTX, MITBX, MITCX, MITRX, MIRTX, EAMTX, EBMTX, ECITX) MFS Aggressive Growth Allocation Fund (Nasdaq: MAAGX, MBAGX, MCAGX, MAARX, MAWAX, EAGTX, EBAAX, ECAAX) MFS Conservative Allocation Fund (Nasdaq: MACFX, MACBX, MACVX, MACRX, MCARX, ECLAX, EBCAX, ECACX) MFS Growth Allocation Fund (Nasdaq: MAGWX, MBGWX, MGCWX, MGARX, MGALX, EAGWX, EBGWX, ECGWX) MFS Moderate Allocation Fund (Nasdaq: MAMAX, MMABX, MMCAX, MAMRX, MARRX, EAMDX, EBMDX, ECMAX) MFS Bond Fund (Nasdaq: MFBFX, MFBBX, MFBCX, MFBRX, MBRRX, EABDX, EBBDX, ECBDX) MFS Emerging Markets Debt Fund (Nasdaq: MEDAX, MEDBX, MEDCX) MFS Government Limited Maturity Fund (Nasdaq: MGLFX, MGLBX, MGLCX) MFS Government Mortgage Fund (Nasdaq: MGMT, MGTBX) MFS Government Securities Fund (Nasdaq: MFGSX, MFGBX, MGFDX, MGSRX, MGVSX, EAGSX, EBGSX, ECGXX) MFS High Income Fund (Nasdaq: MHITX, MHIBX, MHICX, EAHIX, EMHBX, EMHCX, MHIIX, MHIRX) MFS High Yield Opportunities Fund (Nasdaq: MHOAX, MHOB, MHOCX, MHOIX) MFS Intermediate Investment Grade Bond Fund (Nasdaq: MGBFX, MGBVX, MGBCX, MGBEX, MIBRX) MFS Limited Maturity Fund (Nasdaq: MQLFX, MQLBX, MQLCX, EALMX, EBLMX, ELDCX, MLDRX) MFS Research Bond Fund (Nasdaq: MRBFX, MRBBX, MRBCX, EARBX, EBRBX, ECRBX, MRBIX, MRBRX) MFS Strategic Income Fund (Nasdaq: MFIOX, MIOBX, MIOCX, MFIIX) MFS Alabama Municipal Bond Fund (Nasdaq: MFALX, MBABX) MFS Arkansas Municipal Bond Fund (Nasdaq: MFARX, MBARX) MFS California Municipal Bond Fund (Nasdaq: MCFTX, MBCAX) MFS Florida Municipal Bond Fund (Nasdaq: MFFLX, MBFLX) MFS Georgia Municipal Bond Fund (Nasdaq: MMGAX, MBGAX) MFS Maryland Municipal Bond Fund (Nasdaq: MFSMX, MBMDX) MFS Massachusetts Municipal Bond Fund (Nasdaq: MFSSX, MBMAX) MFS Mississippi Municipal Bond Fund (Nasdaq: MISSX, MBMSX) MFS Municipal Bond Fund (Nasdaq: MMBFX, MMBBX) MFS Municipal Limited Maturity Fund (Nasdaq: MTLFX, MTLBX, MTLCX) MFS New York Municipal Bond Fund (Nasdaq: MSNYX, MBNYX, MCNYX) MFS North Carolina Municipal Bond Fund (Nasdaq: MSNCX, MBNCX, MCNCX) MFS Pennsylvania Municipal Bond Fund (Nasdaq: MFPAX, MBPAX) MFS South Carolina Municipal Bond Fund (Nasdaq: MFSCX, MBSCX) MFS Tennessee Municipal Bond Fund (Nasdaq: MSTNX, MBTNX) MFS Virginia Municipal Bond Fund (Nasdaq: MSVAX, MBVAX, MVACX) MFS West Virginia Municipal Bond Fund (Nasdaq: MFWVX, MBWVX) MFS Emerging Markets Equity Fund (Nasdaq: MEMAX, MEMBX, MEMCX, MEMIX) MFS Global Equity Fund (Nasdaq: MWEFX, MWEBX, MWECX, MWEIX, MGERX) MFS Global Growth Fund (Nasdaq: MWOFX, MWOBX, MWOCX, MWOIX, MGLRX) MFS Global Total Return Fund (Nasdaq: MFWTX, MFWBX, MFWCX, MFWIX, MGRRX) MFS International Growth Fund (Nasdaq: MGRAX, MGRBX, MGRCX, MQGIX) MFS International New Discovery Fund (Nasdaq: MIDAX, MIDBX, MIDCX, EAIDX, EBIDX, ECIDX, MWNIX, MINRX) MFS International Value Fund (Nasdaq: MGIAX, MGIBX, MGICX, MINIX) MFS Research International Fund (Nasdaq: MRSAX, MRIBX, MRICX, EARSX, EBRIX, ECRIX, MRSIX, MRIRX) AllianceBernstein Funds: U.S. Stock Funds AllianceBernstein Growth & Income Fund (Sym: CABDX, CBBDX, CBBCX) AllianceBernstein Health Care Fund (Sym: AHLAX, AHLBX, AHLCX) AllianceBernstein Disciplined Value Fund (Sym: ADGAX, ADGBX, ADGCX) AllianceBernstein Mid-Cap Growth (Sym: CHCAX, CHCBX, CHCCX) AllianceBernstein Real Estate Investment Fund (Sym: AREAX, AREBX, ARECX) AllianceBernstein Growth Fund (Sym: AGRFX, AGBBX, AGRCX) AllianceBernstein Select Investor Series Biotechnology Portfolio (Sym: ASBAX, AIBBX, ASBCX) AllianceBernstein Small CapValue Fund (Sym: ABASX, ABBSC, ABCSX) AllianceBernstein Premier Growth Fund (Sym: APGAX, APGBX, APGCX) AllianceBernstein Select Investor Series Technology Portfolio (Sym: AITAX, AITBX, AITCX) AllianceBernstein Value Fund (Sym: ABVAX, ABVBX, ABVCX) AllianceBernstein Quasar Fund (Sym: QUASX, QUABX, QUACX) AllianceBernstein Technology Fund (Sym: ALTFX, ATEBX, ATECX) AllianceBernstein Select Investor Series Premier Portfolio (Sym: ASPAX, ASPBX, ASPCX) AllianceBernstein Utility Income Fund (Sym: AUIAX, AUIBX, AUICX) Value Funds AllianceBernstein Balanced Shares (Sym: CABNX, CABBX, CBACX) AllianceBernstein Disciplined Value Fund (Sym: ADGAX, ADGBX, ADGCX) AllianceBernstein Global Value Fund (Sym: ABAGX, ABBGX, ABCGX) AllianceBernstein International Value Fund (Sym: ABIAX, ABIBX, ABICX) AllianceBernstein Real Estate Investment Fund (Sym: AREAX, AREBX, ARECX) AllianceBernstein Small Cap Value Fund (Sym: ABASX, ABBSX, ABCSX) AllianceBernstein Utility Income Fund (Sym: AUIAX, AUIBX, AUICX) AllianceBernstein Value Fund (Sym: ABVAX, ABVBX, AVBCX Blended Style Series U.S. Large Cap Portfolio (Sym: ABBAX, ABBAX, ABBCX) Global & International Stock Funds AllianceBernstein All-Asia Investment Fund (Sym: AALAX, AAABX, AAACX) AllianceBernstein Global Value Fund (Sym: ABAGX, ABBGX, ABCGX) AllianceBernstein Greater China ``97 Fund (Sym: GCHAX, GCHBX, GCHCX) AllianceBernstein International Premier Growth Fund (Sym: AIPAX, AIPBX, AIPCX) AllianceBernstein International Value Fund (Sym: ABIAX, ABIBX, ABICX) AllianceBernstein Global Small Cap Fund (Sym: GSCAX, AGCBX, GSCCX) AllianceBernstein New Europe Fund (Sym: ANEAX, ANEBX, ANECX) AllianceBernstein Worldwide Privatization Fund (Sym: AWPAX, AWPBX, AWPCX) Select Investor Series AllianceBernstein Select Investor Series Biotechnology Portfolio (Sym: ASBAX, AIBBX, ASBCX) AllianceBernstein Select Investor Series Premier Portfolio (Sym: ASPAX, ASPBX, ASPCX) AllianceBernstein Select Investor Series Technology Portfolio (Sym: AITAX, AITBX, AITCX) Taxable Bond Funds AllianceBernstein Americas Government Income Trust (Sym: ANAGX, ANABX, ANACX) AllianceBernstein Bond Fund Corporate Bond Portfolio (Sym: CBFAX, CBFBX, CBFCX) AllianceBernstein Bond Fund Quality Bond Portfolio (Sym: ABQUX, ABQBX, ABQCX) AllianceBernstein Bond Fund U.S. Government Portfolio (Sym: ABUSX, ABUBX, ABUCX) AllianceBernstein Emerging Market Debt Fund (Sym: AGDAX, AGDBX, AGDCX) AllianceBernstein Global Strategic Income Trust (Sym: AGSAX, AGSBX, AGCCX) AllianceBernstein High Yield Fund (Sym: AHYAX, AHHBX, AHHCX) AllianceBernstein Multi-Market Strategy Trust (Sym: AMMSX, AMMBX, AMMCX) AllianceBernstein Short Duration (Sym: ADPAX, ADPBX, ADPCX) Tax-Exempt Bond Funds AllianceBernstein Intermediate California Muni Portfolio (Sym: AICBX, ACLBX, ACMCX) AllianceBernstein Intermediate Diversified Muni Portfolio (Sym: AIDAX, AIDBX, AIMCX) AllianceBernstein Intermediate New York Muni Portfolio (Sym: ANIAX, ANYBX, ANMCX) AllianceBernstein Muni Income Fund National Portfolio (Sym: ALTHX, ALTBX, ALNCX) AllianceBernstein Muni Income Fund Arizona Portfolio (Sym: AAZAX, AAZBX, AAZCX) AllianceBernstein Muni Income Fund California Portfolio (Sym: ALCAX, ALCBX, ACACX) AllianceBernstein Muni Income Fund Insured California Portfolio (Sym: BUICX, BUIBX, BUCCX) AllianceBernstein Muni Income Fund Insured National Portfolio (Sym: CABTX, CBBBX, CACCX) AllianceBernstein Muni Income Fund Florida Portfolio (Sym: AFLAX, AFLBX, AFLCX) AllianceBernstein Muni Income Fund Massachusetts Portfolio (Sym: AMAAX, AMABX) AllianceBernstein Muni Income Fund Michigan Portfolio (Sym: AMIAX, AMIBX, AMICX) AllianceBernstein Muni Income Fund Minnesota Portfolio (Sym: AMNAX, AMNBX, AMNCX) AllianceBernstein Muni Income Fund New Jersey Portfolio (Sym: ANJAX, ANJBX, ANJCX) AllianceBernstein Muni Income Fund New York Portfolio (Sym: ALNYX, ALNBX, ANYCX) AllianceBernstein Muni Income Fund Ohio Portfolio (Sym: AOHAX, AOHBX, AOHCX) AllianceBernstein Muni Income Fund Pennsylvania Portfolio (Sym: APAAX, APABX, APACX) AllianceBernstein Muni Income Fund Virginia Portfolio (Sym: AVAAX, AVABX, AVACX) Investors in the State of Rhode Island 529 Plan, known as the CollegeBoundfund(*), may have invested in one or more of the funds listed below: AllianceBernstein Growth & Income Fund AllianceBernstein Mid-Cap Growth Fund AllianceBernstein Premier Growth Fund AllianceBernstein Quasar Fund AllianceBernstein Technology Fund AllianceBernstein Quality Bond Portfolio AllianceBernstein International Value Fund AllianceBernstein Small Cap Value Fund AllianceBernstein Value Fund Calugar also engaged in late trading of MFS and Alliance funds. Late trading refers to the practice of placing orders to buy or sell mutual fund shares after close of market at 4:00 p.m. EST, but at the mutual fund's Net Asset Value, or price, determined at the market close. Late trading enables the trader to profit from market events that occur after 4:00 p.m. EST but that are not reflected in that day 's price. Because of Security Brokerage's status as a broker-dealer, it was permitted to submit trades received from its clients before 4:00 p.m. EST to the National Securities Clearing Corporation after 4:00 p.m. EST. Calugar and Security Brokerage thus participated in a scheme with Alliance and MFS to engage in market timing that most other fund investors were not permitted to do. The Mutual Funds as well as Calugar profited at the expense of such investors. Calugar and Security Brokerage made trading profits of $175 million from their market timing and late trading at Alliance and MFS. The Mutual Funds profited by way of increased advisory and other fees. On December 22, 2003, the SEC filed civil fraud charges against Security Brokerage, and its president and majority owner, Calugar, for their participation in a scheme to defraud mutual fund shareholders through improper late trading and market timing. For more information, contact Tzivia Brody, by Mail: 6 East 45th Street, New York, NY 10017, by Phone: toll-free 1-800-337-4983, Fax: 212/490-2022, by E-mail: SSBNY@aol.com, or visit the firm's Website: http://www.ssbny.com. TV AZTECA: Brian Felgoise Files Securities Fraud Suit in S.D. NY ---------------------------------------------------------------- The Law Offices of Brian M. Felgoise, P.C. initiated a securities class action in the United States District Court for the Southern District of New York, on behalf of shareholders who acquired TV Azteca, S.A. de C.V. securities between October 6, 2003 and January 7, 2004, inclusive, against the company and certain key officers and directors. The action charges that defendants violated the 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 Brian M. Felgoise, by Mail: 261 Old York Road, Suite 423, Jenkintown, Pennsylvania, 19046, by Phone: (215) 886-1900, or by E-mail: securitiesfraud@comcast.net. TV AZTECA: Brodsky & Smith Lodges Securities Lawsuit in S.D. NY --------------------------------------------------------------- Brodsky & Smith, LLC initiated a securities class action lawsuit in the United States District Court for the Southern District of New York, on behalf of shareholders who purchased the common stock and other securities of Television Azteca SA de CV, between October 6, 2003 through January 7, 2004 inclusive. The Complaint alleges that defendants violated federal securities laws by failing to disclose certain related-party transactions between a privately-held company jointly owned by TV Azteca's Chairman and President and one of the Company's affiliates. For more information, contact Marc L. Ackerman, or Evan J. Smith, by Mail: Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by Phone: toll free 877-LEGAL-90, or by E-mail: clients@brodsky-smith.com. TV AZTECA: Bernstein Liebhard Files Securities Suit in S.D. NY -------------------------------------------------------------- The law firm of Bernstein, Liebhard & Lifshitz, LLP initiated a securities class action lawsuit in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or acquired TV Azteca, S.A. de C.V. securities between October 6, 2003 and January 7, 2004 The complaint charges that defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period. During the Class Period, defendants failed to disclose certain related- party transactions between a privately-held company jointly owned by the Company's Chairman, Ricardo Salinas Pliego and the Company's President, M. Saba Masri and one of the Company's affiliates -- Unefon Corporacion RBS, a wireless telecommunications provider in Mexico. Specifically, defendants denied any affiliation with a "white- knight" group of investors that had saved Unefon from bankruptcy back in June of 2002. Defendants stonewalled disclosure of the true facts, including ignoring advice from their securities lawyers in the U.S., until a spin-off of Unefon was completed in December 2002. The spin-off anticipated that Unefon's shares would be registered to trade in the U.S. markets facilitating a merger with Salinas' other telecommunications holdings. Then, on January 9, 2004, defendants stunned the markets by admitting that the "white-knight" investors were in fact Salinas and Saba who made a profit of $218 million when their privately-held company bought Unefon's debt for $107 million and then sold it back for $325 million. Market reaction to defendants' belated disclosures was severe. By January 12, 2003, the first day of trading following the Company's admission the price of TV Azteca securities fell more than 14.9 percent in value to close at $7.76 per share in heavy trading volume. For more information, contact Bernstein, Liebhard & Lifshitz, LLP, The Shareholder Relations Department, by Mail: 10 East 40th Street, New York, New York 10016, by Phone: (800) 217-1522 or (212) 779-1414, or by E-mail: TZA@bernlieb.com. ********* A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the Class Action Reporter. Submissions via e-mail to carconf@beard.com are encouraged. Each Friday's edition of the CAR includes a section featuring news on asbestos-related litigation and profiles of target asbestos defendants that, according to independent researches, collectively face billions of dollars in asbestos-related liabilities. The Asbestos Defendant Profiles is backed by an online database created to respond to custom searches. 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