CAR_Public/040429.mbx             C L A S S   A C T I O N   R E P O R T E R

             Thursday, April 29, 2004, Vol. 6, No. 84

                         Headlines

AT&T: FL Attorney General Writes CEO About Long Distance Charges
BRIDGESTONE/FIRESTONE: Recalls 487T Tires Due To Accident Hazard
CALIFORNIA PIZZA: Enters Mediation in CA Overtime Wage Lawsuit
CANADA: Hospital, Doctors Face Suit Over 2003 Tuberculosis Scare
DAUPHIN COUNTY: SEC Files, Settles Cease-And-Desist Proceedings

EQUITABLE LIFE: Pensioners To File Suit Over Losses in Annuities
GREEN BUS: NY Residents Launch Consumer Suit For ADA Violations
HAWTHORNE STERLING: CT Court Enters Final Judgment in Fraud Suit
IC CORPORATION: Recalls 1,589 Cars Due To Wheelchair Lift Defect
JANUS CAPITAL: Reaches $255M Settlement in Mutual Fund Fraud

KFC: Intends To Provide Healthier Food Choices in Fast Food Menu
NICOR INC.: Insurer To Shoulder $29M Lawsuit Settlement Costs
PUBLIC FINANCE: SEC Files Enforcement Complaint For Stock Fraud
VERMONT: Attorney General Forges Settlement With Medco Health
VITAMIN ANTITRUST: Supreme Court Explores Antitrust Law Limits

VOLKSWAGEN OF AMERICA: Recalls Jetta Cars For Brake Light Defect
VOLVO CARS: Recalls V70/V70XC Cars Because of Brake Light Defect
VOLVO TRUCKS: Recalls 2,112 Trucks For Defect, Accident Hazard

                  New Securities Fraud Cases

aaiPHARMA INC.: Marc Henzel Lodges Securities Lawsuit in E.D. NC
ABATIX CORPORATION: Brian Felgoise Lodges Securities Suit in TX
ABATIX CORPORATION: Marc Henzel Files Securities Suit in N.D. TX
ASCONI CORPORATION: Brian Felgoise Lodges Securities Suit in FL
CAREER EDUCATION: Marc Henzel Lodges Securities Suit in N.D. IL

CHINA LIFE: Strauss & Troy Lodges Securities Lawsuit in S.D. NY
IBIS TECHNOLOGY: Marc Henzel Lodges Securities Fraud Suit in MA
MASTEC INC.: Brian Felgoise Commences Securities Suit in S.D. FL
MASTEC INC.: Anatoly Weiser Lodges Securities Lawsuit in S.D. FL
NOKIA CORPORATION: Weiss & Yourman Lodges Stock Suit in S.D. NY

NORTEL NETWORKS: Pomerantz Haudek Files Stock Lawsuit in S.D. NY
NOVASTAR FINANCIAL: Pomerantz Haudek Files Securities Suit in MO
NOVASTAR FINANCIAL: Zimmerman Levi Lodges Securities Suit in MO
PARADIGM MEDICAL: Marc Henzel Lodges Securities Suit in UT Court
PEC SOLUTIONS: Marc Henzel Lodges Securities Lawsuit in E.D. VA

RYLAND GROUP: Marc Henzel Commences Securities Suit in C.D. CA
SPX CORPORATION: Bernstein Liebhard Lodges Stock Suit in W.D. NC
SUPERCONDUCTOR TECHNOLOGIES: Wechsler Harwood Lodges Suit in CA


                            *********


AT&T: FL Attorney General Writes CEO About Long Distance Charges
----------------------------------------------------------------
Florida Attorney General Charlie Crist wrote a letter to John
Palumbo, President and Chief Executive of AT&T Consumer, saying
that Florida telephone customers are hitting a "totally
unacceptable" barrier in their efforts to receive refunds for
improper long-distance charges.  AG Crist called on the head of
AT&T to implement "immediate corrections" to the system and
invited the chief executive to meet in Tallahassee to discuss
consumers' concerns.

In the letter, AG Crist said the Attorney General's Office of
Citizen Services received more than 100 calls and emails from
Floridians in the first full workday after he issued a consumer
alert about the improper bills.  Many of these Floridians
complained that they were frustrated in their attempts to obtain
a refund because of AT&T's automated consumer response system,
which makes it difficult to reach a human representative in
order to request a refund.  When they do reach a live
representative, consumers are often unable to obtain a refund.

The letter further stated that "Callers inform this office that
the automated system erects barriers that prevent human
interaction and on most occasions, when a consumer
representative can be reached, the consumer is informed that a
refund will not be forthcoming.  The system does not provide a
mechanism for the consumer to leave a message describing the
problem.  This is totally unacceptable."

The letter asks Mr. Palumbo to "implement immediate corrections
to the current system, whereby consumers can be reimbursed for
funds improperly solicited from them through this "billing
error."

AG Crist also invited Mr. Palumbo to meet with him in
Tallahassee as soon as possible in order to discuss the reasons
why the consumers can not recover what is owed to them due to
AT&T's mistake.


BRIDGESTONE/FIRESTONE: Recalls 487T Tires Due To Accident Hazard
----------------------------------------------------------------
Bridgestone/Firestone North America is cooperating with the
National Highway Traffic Safety Administration by voluntarily
recalling 487,000 Steeltex A/T LT265/75R16 tires, manufactured
from March 1999 to December 2002.

These tires were installed as original equipment on
approximately 80,000 MY 2000-2003 Ford Excursion sport utility
vehicles.  If the tires are operated at below recommended
inflation pressures or above recommended loads or at excessive
speeds, they could experience rapid air loss, possibly resulting
in a crash.

The manufacturer, in conjunction with Ford Motor Company, will
notify its customers and replace the tires free of charge. The
manufacturer has reported that owner notification began on March
5, 2004.  Owners may contact Bridgestone/Firestone at 800-465-
1904.


CALIFORNIA PIZZA: Enters Mediation in CA Overtime Wage Lawsuit
--------------------------------------------------------------
California Pizza Kitchen, Inc. entered mediation for the class
action filed against it in the Orange County Superior Court in
California.

The plaintiff alleges that the Company failed to give the
Company's food servers, bussers, runners and bartenders rest and
meal breaks as required by California law.  Under the California
Labor Code, an employer must pay each employee one additional
hour of pay at the employee's regular rate of compensation for
each workday that the required meal or rest period is not
provided.

The plaintiff also alleges that additional penalties are owed as
a consequence of the Company's resulting failure to pay all
wages due at the time of termination of employment and under
theories characterizing these alleged breaches as unfair
business practices.  If the plaintiff is able to achieve class
certification and prevails on the merits of the case, the
Company could potentially be liable for significant amounts.

The Company is still investigating the claims and has
participated in one full day of private mediation.  No discovery
has taken place as of yet due to a stay in the proceedings
ordered by the Court to allow the private mediation, and no date
has been set for a hearing on class certification or for trial.


CANADA: Hospital, Doctors Face Suit Over 2003 Tuberculosis Scare
----------------------------------------------------------------
The Lakeridge Health Corporation, the Brooklin Medical Center,
Inc. and several doctors face a class action filed on behalf of
more than 1,800 Canadians who were notified by public health
officials of potential exposure to tuberculosis between February
and October 2003, the Canadian Press reports.

The suit seeks more than $200 million in damages, Koskie Minsky
LLP, the law firm representing the plaintiffs, said in a press
release.  The suit makes claims under negligence and breach of
contract and an additional $20 million in punitive damages.  The
defendants allegedly failed to diagnose the case of tuberculosis
and also failed to take the proper precautions to prevent
transmission of the disease to others.  The claim says the
representative plaintiff in the lawsuit has allegedly contracted
tuberculosis as a result of the defendants' negligence and
breaches of contract.

The lawsuit is unrelated to another tuberculosis scare involving
hospitals in Oshawa and Bowmanville that was announced by Durham
health officials, the Canadian Press reports.  A Lakeridge
spokeswoman declined immediate comment on the class action.


DAUPHIN COUNTY: SEC Files, Settles Cease-And-Desist Proceedings
---------------------------------------------------------------
The Securities and Exchange Commission instituted and
simultaneously settled cease-and-desist proceedings against the
Dauphin County General Authority, Dauphin County, Pennsylvania.
The Commission ordered that Dauphin County General Authority
(Authority) cease-and-desist from violating Sections 17(a)(2)
and 17(a)(3) of the Securities Act of 1933.

According to the Order, the Authority publicly offered and sold
$75.35 million of long-term tax-exempt bonds in July 1998 to
finance the acquisition of the Forum Place office building in
Harrisburg, Pennsylvania.  The Commission's Order contains the
following findings:

     (1) The Authority offered the Bonds through a materially
         misleading Official Statement that failed to disclose
         the scheduled departure of Forum Place's major tenant,
         the Pennsylvania Department of Transportation
         (PennDOT), in 2001;

     (2) The Authority knew, prior to selling the Bonds, of
         PennDOT's scheduled departure, the limited availability
         of qualified replacement tenants, and the lack of any
         commitments from the Commonwealth of Pennsylvania for
         further leasing at Forum Place;

     (3) Authority board members received copies of a
         Preliminary Official Statement prior to voting in July
         1998 to approve its contents.  However, those Authority
         members read little, if any, of the Preliminary
         Official Statement prior to their vote; and

     (4) The Authority is primarily responsible for the content
         of its Official Statement.

The Commission's Order finds that the Authority violated
Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933.
The Commission ordered the Authority, with its consent and
without admitting or denying any of the findings contained in
the Order, to cease-and-desist from committing or causing these
violations.

In a related matter, the Commission instituted public
administrative and cease-and-desist proceedings against Public
Finance Consultants, Inc. (PFC), of Harrisburg, Pennsylvania;
PFC's President, Robert Fowler; Dolphin and Bradbury,
Incorporated (D&B), a registered broker-dealer located in
Philadelphia, Pennsylvania; and D&B's Chief Executive Officer
Robert J. Bradbury, who served as financial advisor and
underwriter for the Bond offering.


EQUITABLE LIFE: Pensioners To File Suit Over Losses in Annuities
----------------------------------------------------------------
Equitable Life Insurance faces a class action filed on behalf of
hundreds of pensioners who suffered losses in their annuities,
after the Company nearly collapsed in 2000, the London Times
reports.

More than 55,000 Equitable policyholders purchased annuities,
policies that pay an income in retirement, from the Company. The
pensioners suffered losses as much as 40% of their income since
the collapse.

The Equitable Life Trapped Annuitants action group told the
Times it had hired the Bristol lawyers Clarke Wilmott to launch
a legal suit in an attempt to recover their losses.  Peter
Scawen, the chairman of ELTA, said, "We are totally
disillusioned with the Equitable board and the Government.  If
they won't respond to the moral case for compensation, we'll
have to use the courts instead."

The group has had 700 responses to a call for pensioners to join
a class action and is seeking to find more backers for a class
action.  The group intends to build up a fighting fund of
500,000.

Robert Morfee at Clarke Wilmott, which is acting on a no win, no
fee basis, said that he intended to launch the legal action in
July.  He said, "We are investing serious money in this case. We
will run the case and we will win it."

A spokesman for Equitable Life told the Times, "It will be
defended to the hilt by the board and they will protect the
interests of all the policyholders.  Any policyholders joining
this action would, in effect, be suing themselves."


GREEN BUS: NY Residents Launch Consumer Suit For ADA Violations
---------------------------------------------------------------
New York's Green Bus Lines faces a class action filed in the
United States District Court in New York on behalf of disabled
residents, alleging the bus line did not provide adequate
service, NY1 reports.

The suit charged the Company with violations of the Americans
with Disabilities Act by not providing reliable wheelchair
accessible service.  Attorneys say the current service is
"grossly inadequate."

The private bus line is contracted by the city's Department of
Transportation and is one of seven private bus companies to be
taken over by the city on July 1, NY1 reports.  The city Law
Department says it is evaluating the case, but refused to
comment further.


HAWTHORNE STERLING: CT Court Enters Final Judgment in Fraud Suit
----------------------------------------------------------------
The U.S. District Court for the District of Connecticut entered
final judgment by default in SEC v. Ian L. Renert et al., 301-
CV-1027 (PCD) (June 6, 2001) against Ian L. Renert, formerly of
Wilton, Connecticut and against Hawthorne Sterling & Co., an
unregistered investment adviser controlled by Mr. Renert.

The judgment was entered in a civil enforcement action the
Commission filed in June 2001 alleging that Mr. Renert, the
owner and control person of Hawthorne, was the architect of a
$22 million fraudulent offering of interests in unregistered
offshore mutual funds.  The Commission alleged in its complaint
that from at least June 1997 through June 2000, Mr. Renert and
Hawthorne induced more than 700 investors in 49 states and more
than 100 investors overseas to purchase interests in 30 entities
known as the Hawthorne Sterling Family of Funds.

According to the complaint, Mr. Renert and Hawthorne
misrepresented via the Internet, offshore seminars and a network
of sales agents that the funds would invest in bank debentures,
which in this case, were fictitious prime bank instruments.  The
Commission also alleged that the Renert and Hawthorne failed to
disclose that Renert used fund assets to engage in day trading
in Internet stocks, losing at least $2.2 million, and to fund a
mortgage on one of Renert's homes.

The judgment against Renert and Hawthorne permanently enjoins
both from violating the antifraud provisions of the securities
laws, Section 17(a) of the Securities Act of 1933 (Securities
Act); Section 10(b) of the Securities Exchange Act of 1934 and
Rule 10b-5 thereunder; and Sections 206(1) and 206(2) of the
Investment Advisers Act of 1940.  The judgment also enjoins both
Renert and Hawthorne from violating Sections 5(a) and 5(c) of
the Securities Act and Section 7(d) of the Investment Company
Act of 1940, which prohibit unregistered offerings.

The Court also held Renert and Hawthorne jointly and severally
liable to pay $717,276 (representing profits gained as a result
of conduct alleged in the complaint) plus prejudgment interest
of $117,264, for a total disgorgement of $834,540.  The Court
also ordered Renert to pay $250,000 in civil penalties and
Hawthorne to pay $500,000 in civil penalties.

The suit is styled, "SEC v. Ian L. Renert, et al., USDC,
District of Connecticut, 301-CV-1027 (PCD)."


IC CORPORATION: Recalls 1,589 Cars Due To Wheelchair Lift Defect
----------------------------------------------------------------
IC Corporation is cooperating with the National Highway Traffic
Safety Administration by voluntarily recalling 1,589 cars,
namely:

     (1) IC/Amtran CE buses, model 2003 to 2004

     (2) IC/Amtran FE buses, model 2003 to 2004

     (3) IC/Amtran RE buses, model 2003 to 2004

These cars were manufactured from August 2002 to February 2003.
On certain "Special Needs" school buses equipped with Sur-Loc
"L" wheelchair tracks, the wheelchair lift mounting bolts could
corrode if moisture is present in the treated plywood floor.
This could reduce the function of the track or the strength of
the lift mounting bolts, resulting in personal injury to the
wheelchair occupant in the event of a crash.

Dealers will replace the Sur-Loc "L" tracks with protected
tracks and mounting hardware. Also, lift-floor mounting bolts
will be replaced. The manufacturer has reported that owner
notification began on March 23, 2004.  Owners may contact IC at
1-800-843-5715.


JANUS CAPITAL: Reaches $255M Settlement in Mutual Fund Fraud
------------------------------------------------------------
Janus Capital Group, Inc. reached a US$225 million settlement
with state and federal regulators, regarding its alleged abusive
mutual fund trading practices, Reuters reports.

New York Attorney General Eliot Spitzer named Janus Capital
Group, Inc. as one of the defendants in his September complaint
about abusive mutual fund trading practices such as late trading
and market timing, quick in-out-trade that isn't illegal but
that most fund prospectuses prohibit.  Janus was accused of
permitting certain investors to time its funds, in exchange for
investments from which it earned fees.  The complaint launched
an industry-wide probe, and caused several shareholder class
actions to be filed.

Four other companies have agreed to pay US$1.1 billion in fines
to settle the allegations.  Janus's settlement is the fourth
largest settlement to be reached in the probes.  Janus has
suffered at least $13 billion in redemptions since New York
Attorney General Eliot Spitzer named it in his complaint in
September that launched an industry-wide probe.

Under the settlement, the Company agreed to pay $50 million in
civil penalties, $50 million in restitution and disgorgement to
injured investors, and to reduce its fees by $125 million over
five years, the Colorado attorney general's office said in a
statement.  The Company also reached the settlement with the
Securities and Exchange Commission and the Colorado Securities
Division.

Rachel Barnard, an analyst with Morningstar, Inc. called the
settlement a milestone.  "It's not a huge enough amount to make
a big difference in long-term profitability," she told Reuters.
"I don't think it's going to change investors' opinions right
away of Janus funds."

In a statement, the Company said its "funds are not intended for
market timing or excessive trading."  The company also outlined
a series of measures to deter market timing activities in its
prospectuses.

"This settlement continues our efforts to level the playing
field for mutual fund investors," AG Spitzer said in the
statement.  "Market timers will no longer be given special
access and permitted to profit at the expense of long-term
investors."

Colorado officials told Reuters Janus agreed that the chairman
of its funds be independent, with no prior connection to the
company, a requirement the industry has fought.  Janus also
agreed to pay $1 million to be held in trust by the Colorado
attorney general to be used for consumer and investor education,
and future enforcement activities.

Specific fee reductions will be determined on a fund-by-fund
basis by the independent trustees of respective Janus funds, in
consultation with the New York attorney general's office, Janus
told Reuters.

Although the company still faces a judgment whose outcome is
unknown over class action lawsuits being consolidated in
Baltimore, the settlement is good for investors as it allows
them to understand its financial impact on Janus, analysts said.


KFC: Intends To Provide Healthier Food Choices in Fast Food Menu
----------------------------------------------------------------
Fast food giant KFC will unveil this week plans to overhaul its
menu to serve healthier food in the face of falling sales and
demands for healthier food, USA Today reports.

The fast food giant that once had the word "Fried" in its name
will also sell oven-roasted chicken in boneless strips, in wraps
and in salads.  The paper said the new menu will be in place May
10.

Last year, the Company discontinued an ad campaign saying that
fried chicken was part of a healthy diet.  As a result the
Center for Science in the Public Interest filed a complaint with
the Federal Trade Commission, the Associated Press reports.


NICOR INC.: Insurer To Shoulder $29M Lawsuit Settlement Costs
-------------------------------------------------------------
Nicor, Inc.'s insurer will set aside US$29 million to settle
claims in the securities class action and the shareholder
derivative action filed against its directors and officers,
moneysense.ca reports.

The Company's insurer will pay the settlement to a third party
escrow agent to cover liabilities and expenses for the defense
of the suits, with the remaining balance to be shouldered by the
Company.  The Company also said it is still seeking recovery
from another insurance carrier for additional money in
connection with the same matters.

Last December, the United States Securities and Exchange
Commission charged four of the Company's former executives of a
defunct Nicor unit with artificially inflating the Company's
financial statements in 2001.  A federal grand jury also
indicted three of the four executives and a former outside
counsel.  Earlier this month, it revealed that the U.S.
Securities and Exchange Commission plans to file civil charges
against it, alleging fraud and financial reporting violations.


PUBLIC FINANCE: SEC Files Enforcement Complaint For Stock Fraud
---------------------------------------------------------------
The Securities and Exchange Commission instituted enforcement
proceedings against Public Finance Consultants, Inc. (PFC), of
Harrisburg, Pennsylvania, and:

     (1) PFC's President, Robert Fowler,

     (2) Dolphin and Bradbury, Incorporated (D&B), a registered
         broker-dealer located in Philadelphia, Pennsylvania;
         and

     (3) D&B's Chief Executive Officer, Robert J.  Bradbury

The proceedings alleged violations of the antifraud provisions
of the federal securities laws.  PFC and Mr. Fowler served as
financial advisor, and D&B and Mr. Bradbury acted as the
underwriter, in connection with a $75.35 million public offering
in July 1998 of long-term tax-exempt municipal bonds issued by
the Dauphin County General Authority (the Authority) to finance
the purchase of the Forum Place office building in Harrisburg,
Pennsylvania.

In the Order Instituting Public Administrative and Cease-and-
Desist Proceedings, the Commission's Division of Enforcement
alleges that the Bonds were offered and sold on the basis of a
materially misleading Official Statement that failed to disclose
that Forum Place's major tenant, the Pennsylvania Department of
Transportation (PennDOT), representing over sixty percent of the
building's revenues, intended to vacate Forum Place as soon as a
new building in Harrisburg, known as the Keystone Building, was
completed.

The Official Statement also did not contain any information
concerning the supply of, or demand for, office space by
eligible tenants in the Harrisburg area.  In order to maintain
the tax-exempt status of the Bonds, only ten percent of the
space at Forum Place could be leased to entities other than
state or local government units or charitable organizations.

According to the Order, the Authority relied on Mr. Fowler, as
its financial advisor, to ensure that the Official Statement was
accurate.  Further, Fowler substantially participated in the
drafting of the Official Statement.  Moreover, as underwriter of
the Bonds, D&B was obligated to obtain and review a near-final
version of the Official Statement, and Bradbury was responsible
for conducting that review.

The Division alleges that Fowler and Bradbury each knew, or were
reckless in not knowing, prior to the offer and sale of the
Bonds, that the State planned to move PennDOT from Forum Place
to the Keystone Building when construction of that building was
completed.

The Division alleges that prospective investors generally were
unaware of PennDOT's scheduled move to the Keystone Building,
and by virtue of the misleading Official Statement and other
documents provided by D&B, they incorrectly concluded that
PennDOT was likely to remain at Forum Place beyond the
expiration of the lease.  PennDOT departed from Forum Place as
scheduled, and the Authority has been unable to replace it.  The
Bonds are in default, and Forum Place is currently in
receivership.

The Order alleges that the Authority violated, and PFC and
Fowler caused the Authority's violations of, Sections 17(a)(2)
and 17(a)(3) of the Securities Act.  The Order also alleges that
D&B and Bradbury violated Section 17(a) of the Securities Act
and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder,
and MSRB Rule G-17.

In a related matter, the Commission has accepted an offer of
settlement from the Authority.  The Authority was primarily
responsible for the content of its Official Statement.  The
Authority has consented, without admitting or denying the
findings of the Commission, to the entry of an order that it
cease-and-desist from committing or causing any violations and
any future violations of Sections 17(a)(2) and 17(a)(3) of the
Securities Act.


VERMONT: Attorney General Forges Settlement With Medco Health
-------------------------------------------------------------
Vermont Attorney General William H. Sorrell announced in a
statement the settlement of claims under Vermont's Consumer
Fraud Act against Medco Health Solutions, Inc., the world's
largest pharmaceutical benefits management (PBM) company.

As a PBM, Medco manages pharmaceutical benefits for health
insurance plans and employers, reimburses retail pharmacies for
drugs purchased by consumers covered by the plans, and runs
several mail order pharmacies to fill long-term prescriptions.
Along with the Attorneys General in 19 other states, Attorney
General Sorrell has alleged that Medco encouraged prescribers to
switch consumers to prescription drugs different from the ones
prescribed by their doctor through deceptive claims about the
purpose for the switch.

Attorney General Sorrell alleged that Medco proposed these drug
switches because they benefited Medco through payments made by
the pharmaceutical manufacturers of the drug that consumers were
switched to.  In its solicitations for the drug switches, Medco
told the doctors and consumers that the switches saved money for
both the consumers and health plans.

Moreover, Attorney General Sorrell alleged that these claims
were false because in fact the drug switches resulted in
increased costs to health plans and patients, primarily in
follow-up doctor visits and tests.  For example, Medco switched
patients from certain cholesterol lowering medications to Zocor,
another cholesterol lowering drug, but that switch requires
patients to receive follow-up blood tests.

"PBMs play a significant role in the way drugs are purchased by
consumers who have insurance coverage," said Attorney General
Sorrell.  "This investigation uncovered that some PBM practices
result in higher costs for consumers and greater benefits for
the PBM. This settlement will begin the process of changing and
shedding more light on these practices."

The settlement, contained in a consent decree filed in
Washington Superior Court, requires Medco to disclose, when
making a solicitation to a doctor for a drug switch:

     (1) the minimum or actual cost savings for health plans and
         the difference in co-payments made by patients;

     (2) Medco's financial incentives for certain drug switches;
         and

     (3) material differences in side effects between prescribed
         drugs and proposed drugs.

Medco is also required to:

     (i) Reimburse patients for out-of-pocket costs for drug
         switch-related health care costs and notify patients
         and prescribers that such reimbursement is available;

    (ii) Inform patients that they may decline the drug switch
         and receive the initially prescribed drug; and

   (iii) Monitor the effects of drug switches on the health of
         patients.

Medco will pay $2.5 million to patients who incurred expenses
related to switches between cholesterol controlling drugs from
1999 to the present.  Affected consumers will receive a notice
and claim form in the mail within the next few months.  Medco
also will pay $26.5 million to the 20 states.  A portion of this
payment must be used to purchase drugs for clinics in the
states, or to otherwise benefit low income, disabled, or elderly
consumers of prescription medications.

Vermont will receive a total of $510,000, including $100,000 to
benefit clinics or consumers of prescription drugs.  In addition
to Vermont, the participating states are: Arizona, California,
Connecticut, Delaware, Florida, Illinois, Iowa, Louisiana,
Maine, Maryland, Massachusetts, Nevada, New York, North
Carolina, Oregon, Pennsylvania, Texas, Virginia and Washington.
Medco is the nation's largest PBM, with over 62 million covered
lives.  In the thirty years since the first PBMs appeared, their
services have evolved to include complex rebate programs,
pharmacy networks, and drug utilization reviews.


VITAMIN ANTITRUST: Supreme Court Explores Antitrust Law Limits
--------------------------------------------------------------
The United States Supreme Court examined the global reach of the
United States antitrust law, while hearing arguments for the
class action filed against a cartel of multinational vitamin
companies on behalf of foreign vitamin buyers, styled "F.
Hoffman-LaRoche Ltd. v. Empagran S.A., No 03-724," law.com
reports.

Prominent law firm Cohen, Milstein, Hausfeld and Toll filed the
suit, making claims under the 1982 Foreign Trade Antitrust
Improvement Act, which they asserted allows foreign companies to
bring antitrust suits in the US courts against multinational
companies.  Last fall, the United States Court of Appeals for
the District of Columbia Circuit allowed the suit to proceed,
ruling that the conduct of the vitamin cartels "injures both
foreign plaintiffs and domestic plaintiffs, and it is clearly
the conduct that Congress intends to reach with our antitrust
laws."

The Supreme Court justices expressed concerns about overstepping
the intended boundaries of U.S. antitrust laws and the
possibility of decreased antitrust prosecution abroad if U.S.
laws were interpreted to allow foreigners the right to bring
antitrust actions in U.S. courts.   Other courts have disagreed
on the question of jurisdiction, with the D.C. Circuit and the
2nd U.S. Circuit Court of Appeals allowing foreign complaints to
proceed, and the 5th Circuit refusing.

R. Hewitt Pate, the assistant attorney general for antitrust of
the Department of Justice, faced questioning from the justices
along with Stephen Shapiro, a Mayer, Brown, Rowe & Maw attorney
arguing on behalf of the alleged cartels.  Both of them agreed
that antitrust suits filed by foreign companies should not be
allowed, unless there is evidence that the alleged antitrust
violation had an impact in the United States.

Justice Stephen Breyer, the Supreme Court's leader on antitrust
issues, asked if allowing foreign plaintiffs to sue in U.S.
courts over transactions that occurred overseas amounts to
"judicial imperialism," noting that, in many other countries,
aspects of U.S. antitrust law - including liberal rules on
damages, jury trials, discovery, and class action - are highly
controversial, law.com reports.  Judge Breyer expressed the most
explicit skepticism about allowing foreign plaintiffs to bring
suits in U.S. courts based on transactions that did not occur
here.

Justice Antonin Scalia suggested that although more than 100
countries have antitrust regimes, many countries have not
developed antitrust laws of their own. His question: "What about
the majority of nations without antitrust laws? Might they be
eager for us to do the job for them?"

In response to Justice Ruth Bader Ginsburg's questions about
comity, or recognition by courts in different jurisdictions of
the laws and judicial decisions of another, Thomas Goldstein, on
behalf of those challenging the purported cartels, offered an
unusual possible solution, law.com reports.  To avoid friction
with other jurisdictions, Goldstein suggested, the lower courts
could limit the remedies available to foreign plaintiffs to
those allowed in their home courts.  In other words, if a
plaintiff's home country allows only single damages, Goldstein
suggested, the U.S. court could set a cap of single damages if
that plaintiff prevails


VOLKSWAGEN OF AMERICA: Recalls Jetta Cars For Brake Light Defect
----------------------------------------------------------------
Volkswagen of America, Inc. is cooperating with the National
Highway Traffic Safety Administration by recalling 377,130
Volkswagen Jetta cars, model 1999-2002, manufactured from May
1998 to November 2001.

The brake light switch on these vehicles may malfunction.  If
this happens, the brake lights could become inoperative, or come
on and stay on, even though the vehicle is parked.

Dealers will replace these switches. The manufacturer has
reported that owner notification is expected to begin during
April 2004. Owners may contact Volkswagen at 1-800-822-8987.


VOLVO CARS: Recalls V70/V70XC Cars Because of Brake Light Defect
----------------------------------------------------------------
Volvo Cars of North America, Inc. is cooperating with the
National Highway Traffic Safety Administration by recalling
3,242 Volvo V70/V70XC cars, model 2002, manufactured from May to
June 2002.

On certain sport utility vehicles, the rear left and right brake
light relays may not function when the brake pedal is depressed
or may stay on continuously. If the brake lights fail to come
on, there will be no lower brake lights to indicate to following
vehicles that the vehicle is decelerating, which could result in
a crash.

Dealers will replace the brake light relay with two relays of a
modified design. The manufacturer has reported that owner
notification began on February 23, 2004.  Owners may contact
Volvo at 1-800-458-1552.


VOLVO TRUCKS: Recalls 2,112 Trucks For Defect, Accident Hazard
--------------------------------------------------------------
Volvo Trucks North America, Inc. is cooperating with the
National Highway Traffic Safety Administration by recalling
2,112 Volvo VN trucks, model 2002-2003, manufactured from
November 2002 to October 2003.

On certain Class 8 trucks, the engine pre-heater jumper wiring
harness was incorrectly assembled. The engine pre-heater could
overheat, resulting in damage to it and to other heat- sensitive
engine components located near the pre-heater. This could
compromise the ability to re-start the engine, which could
result in a crash.

Dealers will repair the affected circuits in the jumper wiring
harness connector. The manufacturer has reported that owner
notification began on March 8, 2004.  Owners may contact Volvo
at 1-800-528-6586.


                 New Securities Fraud Cases


aaiPHARMA INC.: Marc Henzel Lodges Securities Lawsuit in E.D. NC
----------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the Eastern
District of North Carolina, Southern Division, on behalf of
persons who purchased or otherwise acquired publicly traded
securities of aaiPharma Inc. (NASDAQ: AAII) between July 23,
2003 and February 4, 2004, inclusive.  The lawsuit was filed
against aaiPharma and Philip S. Tabbiner and William L. Ginna.

The complaint alleges that Defendants violated Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder. Specifically, the complaint alleges
that, throughout the Class Period, Defendants issued numerous
statements to the market concerning the Company's financial
results, which failed to disclose and or misrepresented that the
Company's core business was deteriorating, that the company was
unloading inventory onto wholesalers in order to meet sales
projections, and that the aforementioned practice in order to
keep its stock price up in order to fend off a third party
suitor.

On February 5, 2004, aaiPharma announced that the Company
expected net revenues to be between $340 million and $355
million for 2004. Diluted earnings per share for 2004 were
expected to remain, as previously disclosed, between $1.45 and
$1.52. Earnings were expected in the range of $0.27 to $0.30 per
diluted share for the first quarter 2004. Additionally, the
Company announced that it was setting aside money to pay for
refunds on older medicines after an unusually high return rate
in the fourth quarter. In response to this news, shares of
aaiPharma fell 23%, or $6.36 per share to close at $21.24 per
share on very heavy volume.

For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com


ABATIX CORPORATION: Brian Felgoise Lodges Securities Suit in TX
---------------------------------------------------------------
The Law Offices of Brian M. Felgoise, P.C. initiated a
securities class action on behalf of shareholders who acquired
Abatix Corporation (NASDAQ: ABIX) securities between April 14,
2004 and April 21, 2004, inclusive.  The case is pending in the
United States District Court for the Northern District of Texas,
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 details, contact Brian M. Felgoise, Esquire by Mail:
261 Old York Road, Suite 423, Jenkintown, Pennsylvania, 19046,
by Phone: (215) 886-1900 or by E-mail:
securitiesfraud@comcast.net


ABATIX CORPORATION: Marc Henzel Files Securities Suit in N.D. TX
----------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the Northern
District of Texas on behalf of purchasers of the securities of
Abatix Corporation (Nasdaq: ABIX) between 5:05 p.m. Eastern
Standard Time ("EST") on April 14, 2004 and 8:24 a.m. EST on
April 21, 2004, inclusive, seeking to pursue remedies under the
Securities Exchange Act of 1934.  The action is pending against
defendants Abatix, Terry Shaver (President and CEO), Frank
Cinatl, IV (CFO and Vice President), and Gary Cox (COO).

According to the complaint, defendants violated sections 10(b)
and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a
series of material misrepresentations to the market during the
Class Period.

The complaint alleges that on April 14, 2004, at 5:05 p.m. EST,
Abatix issued a press release announcing it had entered into an
agreement with Goodwin Group LLC ("Goodwin Group") for the
exclusive rights to distribute Goodwin Group's RapidCool (TM)
line of products worldwide. In the release, Abatix claimed that
RapidCool (TM) products "actually removes heat from fire, metal,
wood, skin, and other surfaces--fires are suppressed with less
water and manpower; skin treated with the FDA approved RapidCool
TM burn cream heals more quickly; trees and other combustibles
treated with RapidCool TM refuse to ignite; expensive tool
components in the industrial segment that are treated with
RapidCool TM generally have an extended life." Moreover, in the
release, defendant Terry Shaver claimed that "RapidCool(TM) is
part of our growth strategy. The exclusive distribution rights
to this product line are exciting because it has the potential
to be revolutionary. We are beginning the process of third party
testing that will remove any questions as to the efficacy of the
product."  In reaction to this release, the price per share of
Abatix common stock on the following day skyrocketed 214.5%, or
$11.39, from the closing price of $5.31 on April 14, 2004 to a
closing price of $16.70 on April 15, 2004.

Unbeknownst to investors, however, Abatix's claims were
materially false and misleading. On April 19, 2004, the NASDAQ
Stock Market (R) issued a press release at 10:30 a.m. EST
announcing that as of 9:26 a.m. EST, trading of Abatix common
stock was halted at $16.70 per share, its closing price on April
15, 2004, while the NASDAQ investigated Abatix's agreement with
Goodwin Group. On April 21, 2004, Abatix issued a press release
at 8:24 a.m. EST in which defendants "clarified" that:

     (1) the RapidCool (TM) burn cream is not FDA approved;

     (2) Abatix failed to verify the efficacy and uniqueness of
         the RapidCool (TM) products;

     (3) Abatix had only conducted limited due diligence prior
         to entering into the agreement with Goodwin Group;

     (4) Abatix failed to verify whether Goodwin Group had been
         assigned the patents on the RapidCool (TM) products and
         therefore, whether Goodwin Group was authorized to
         enter into the exclusive distribution agreement with
         Abatix;

     (5) Abatix failed to verify the ownership of any patent
         applications filed with respect to the RapidCool (TM)
         product line; and

     (6) Abatix nor Goodwin Group have ever sold any RapidCool
         (TM)products.

On April 21, 2004, once trading of Abatix stock on NASDAQ
resumed, the price of Abatix stock plummeted as fast and as far
as it had risen in reaction to the April 14, 2004 press release,
falling $6.93, or 41.4%, from its halted price of $16.70 per
share to close at $9.77.

For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com


ASCONI CORPORATION: Brian Felgoise Lodges Securities Suit in FL
---------------------------------------------------------------
The Law Offices of Brian M. Felgoise, P.C. initiated a
securities class action on behalf of shareholders who acquired
Asconi Corporation (AMEX:ACD) securities between May 15, 2003
and March 23, 2004, inclusive.

The case is pending in the United States District Court for the
Middle District of Florida, 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 details, contact Brian M. Felgoise, Esquire by Mail:
261 Old York Road, Suite 423, Jenkintown, Pennsylvania, 19046,
by Phone: (215) 886-1900 or by E-mail:
securitiesfraud@comcast.net


CAREER EDUCATION: Marc Henzel Lodges Securities Suit in N.D. IL
---------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the Northern
District of Illinois, Eastern Division on behalf of purchasers
of Career Education Corporation (NASDAQ: CECO) securities, who
were damaged thereby, during the period between April 22, 2003
and December 2, 2003, inclusive.

The complaint charges CEC and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. The complaint alleges that Career Education publicly
touted its business and financial performance, the performance
of its stock price and its industry leading position as reasons
for why investors should purchase its stock. These, and other
statements particularized in the complaint, were materially
false and misleading because they failed to disclose that CEC
had been regularly falsifying student records in order to
increase graduation rates and enrollment, conceal problems that
could have threatened the accreditation of its schools, and
generally, to allow it to increase its profitability.

On December 3, 2003, the market learned that the former
registrar of CEC's Brooks Institute of Photography in Santa
Barbara, California alleged, in a complaint filed with an
accreditation agency, that the school falsified student records
to ensure that the school passed inspections by accreditation
auditors and to increase enrollment. In reaction to this
announcement, CEC's stock price plummeted, falling from $54.76
per share on December 2, 2003 to $39.48 on December 3, 2003, a
one-day drop of 28%, on trading volume of 18.2 million shares --
more than nine times the Company's three-month daily average.
Throughout the Class Period, Career Education insiders,
including the individual defendants, sold a total of 1.7 million
(split-adjusted) shares of Career Education common stock at
artificially inflated prices, reaping gross proceeds in excess
of $69 million.

For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com


CHINA LIFE: Strauss & Troy Lodges Securities Lawsuit in S.D. NY
---------------------------------------------------------------
The Law Firm of Strauss & Troy filed a securities class action
on behalf of all persons who purchased or acquired the
securities of China Life Insurance Co. Limited (LFC) between
December 22, 2003 and February 3, 2004, inclusive and who
suffered damages thereby.  The action, case number 04-CV-2821,
David Kammerer v. China Life Insurance Co. Limited et al., is
pending in the United States District Court for the Southern
District of New York.

The Complaint alleges that during the Class Period, China Life
and certain of its officers 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
defendants failed to disclose:

     (1) that China Life and/or its predecessor company had
         engaged in a huge financial fraud by misusing 5.4
         billion yuan ($652 million) of funds;

     (2) that China Life and/or its predecessor company had
         engaged in criminal activities by making illegal and
         unauthorized loans, investments and payments;

     (3) that at the time of its initial public offering ("IPO")
         the National Audit Office of the Peoples Republic of
         China ("CNO") had completed and/or was about to publish
         its report detailing this huge financial fraud; and

     (4) that defendants knew that this information would have a
         material impact on the share price of its $3 billion
         IPO.

On February 3, 2004, Bloomberg reported that the CNO had
published its report detailing massive fraud at China Life. The
report stated that China Life had misused 5.4 billion yuan ($652
million) of funds, making illegal and unauthorized loans,
investments and payments. According to Bloomberg, the CNO's
probe uncovered 28 criminal cases involving 489 million yuan.
More specifically, the CNO found that China Life offered illegal
agency services and made unusually high insurance payments to
the amount of 2.38 billion yuan. The CNO reported that Company
used 2.5 billion yuan to make illegal investments and gave
unauthorized loans. Government investigators also found private
caches holding 31.79 million yuan that were set up by the
Company. News of this shocked the market and shares of China
Life fell $2.13 per share, or 7.4% to close at $26.67 per share
on usually high trading volume on February 4, 2004.

For more details, contact Richard S. Wayne, Esq., or Joseph J.
Braun, Esq., Strauss & Troy by Mail: 150 East Fourth Street,
Cincinnati, Ohio 45202 by Phone: 800-669-9341 or (513) 621-2120
or by E-mail: rswayne@strauss-troy.com.


IBIS TECHNOLOGY: Marc Henzel Lodges Securities Fraud Suit in MA
---------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for District of
Massachusetts on behalf of all purchasers of the common stock of
Ibis Technology Corporation (NasdaqNM: IBIS) between October 2,
2003 and December 12, 2003.

The Complaint alleges that defendants violated the Exchange Act
by issuing material misrepresentations between October 2, 2003
and December 12, 2003 concerning Ibis' new generation SIMOX-SOI
implanter, including that Ibis had orders from Japanese wafer
manufacturers which would close prior to December 31, 2003.
Defendants also misrepresented the carrying value of the smaller
size wafers production line on Ibis' financial statements.

On December 15, 2003, defendants filed a Form 8-K with the SEC
admitting that there would be no sales of i2000 implanters in Q4
2003 from the Japanese wafer manufacturers and that they now
expected to receive order(s) for one to three i2000 implanters
sometime in 2004 but that the timing of the orders ``is very
difficult to predict because the sales require the purchaser to
enter into a license agreement with a third party.'' Defendants
further admitted that Ibis would record a ``material charge''
due to the impairment of its smaller size production equipment.
In reaction to the announcement, the price of Ibis' common stock
fell from a $15.40 per share close on December 12, 2003 to a
close of $13.20 per share on December 15, 2003 and a closing
price of $10.37 on December 16, 2003, on extraordinary high
combined volume of 4.4 million shares, almost 50% of the
outstanding shares of Ibis common stock.

For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com


MASTEC INC.: Brian Felgoise Commences Securities Suit in S.D. FL
----------------------------------------------------------------
The Law Offices of Brian M. Felgoise, P.C. initiated a
securities class action on behalf of shareholders who acquired
MasTec, Inc. (NYSE:MTZ) securities between May 13, 2003 and
April 12, 2004, inclusive.  The case is pending in the United
States District Court for the Southern District of Florida,
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 details, contact Brian M. Felgoise, Esquire by Mail:
261 Old York Road, Suite 423, Jenkintown, Pennsylvania, 19046,
by Phone: (215) 886-1900 or by E-mail:
securitiesfraud@comcast.net


MASTEC INC.: Anatoly Weiser Lodges Securities Lawsuit in S.D. FL
----------------------------------------------------------------
The Law Offices Of Anatoly Weiser initiated a securities class
action on behalf of shareholders who purchased the common stock
of MasTec, Inc. (NYSE:MTZ) between May 13, 2003 and April 12,
2004, inclusive.  The lawsuit was filed in the United States
District Court for the Southern District of Florida.

The Complaint alleges that defendants violated federal
securities laws by issuing a series of material
misrepresentations to the market during the relevant time period
thereby artificially inflating the price of MasTec securities.
More specifically, the Complaint alleges that defendants failed
to disclose and indicate the following:

     (1) that the Company was materially inflating its financial
         results;

     (2) that the Company was prematurely recognizing revenue on
         various contracts;

     (3) that the Company's practice of improperly recognizing
         revenue was in violation of Generally Accepted
         Accounting Principles;

     (4) that the Company overstated its inventory;

     (5) that the Company failed to have adequate reserves for
         bad debts, inventory, cost overruns, and projected
         losses on certain projects; and

     (6) as a result, the Company's financial results were
         materially inflated at all relevant times.

For more details, contact Anatoly Weiser by Phone:
(877) 736-5411, by Fax: (858) 225-0838 or by E-mail:
info@classlawsuit.com.


NOKIA CORPORATION: Weiss & Yourman Lodges Stock Suit in S.D. NY
---------------------------------------------------------------
Weiss & Yourman initiated a securities class action against
Nokia OYJ (Nokia Corp.) NOK and its officers was commenced in
the United States District Court for the Southern District New
York, on behalf of purchasers of Nokia securities. If you
purchased Nokia securities between January 8, 2004 and April 6,
2004, please read this notice.

The complaint charges the defendants with violations of the
Securities Exchange Act of 1934. The complaint alleges that
defendants issued false and misleading statements, which
artificially inflated the stock.

For more details, contact Mark D. Smilow, James E. Tullman, or
David C. Katz by Mail: Weiss & Yourman, The French Building, 551
Fifth Avenue, Suite 1600, New York, New York 10176 by Phone:
888-593-4771 or 212-682-3025 or by E-mail: info@wynyc.com


NORTEL NETWORKS: Pomerantz Haudek Files Stock Lawsuit in S.D. NY
----------------------------------------------------------------
Pomerantz Haudek Block Grossman & Gross LLP initiated a
securities class action filed in the United States District
Court for the Southern District of New York, Civil Action No.:
04 CV 2572, against Nortel Networks, Inc. (NYSE:NT) and three of
the Company's senior officers, on behalf of investors who
purchased the securities of Nortel during the period April 24,
2003 and March 10, 2004.

The lawsuit alleges that defendants issued false and misleading
financial reports and statements. In particular, it is alleged
that throughout the Class Period, the Company's earnings were
artificially inflated through accounting manipulation in
violation of Generally Accepted Accounting Principles (GAAP).

On March 10, 2004, Nortel announced that it might have to
restate results for 2003 and earlier, results which the Company
had restated only months earlier.  The Company also announced
its need to delay filing of its 2003 annual report.  Upon
Nortel's announcements, the price of its common stock fell over
7%.  Thereafter, Nortel announced on March 15, 2004, the
suspension of defendants Douglas Beatty and Michael Gollogly.
Following this announcement, the price of the shares of the
Company's stock fell 18.5%.  The Securities and Exchange
Commission (SEC) has reportedly undertaken a formal
investigation of the Company's accounting practices.

For more details, contact Andrew G. Tolan, Esq. by Phone:
888-476-6529 ((888) 4-POMLAW) or by E-mail: agtolan@pomlaw.com


NOVASTAR FINANCIAL: Pomerantz Haudek Files Securities Suit in MO
----------------------------------------------------------------
Pomerantz Haudek Block Grossman & Gross LLP initiated a
securities class action lawsuit against NovaStar Financial, Inc.
(NYSE:NFI) and three of the Company's senior officers, on behalf
of all persons or entities who purchased the securities of
NovaStar during the period between October 29, 2003 through
April 8, 2004, inclusive.  The case was filed in the United
States District Court for the Western District of Missouri
(Western Division).

The complaint alleges that NovaStar, a specialty finance company
which acquires single family residential subprime mortgage loans
and purchases mortgage securities in the secondary market, and
the Company's President W. Lance Anderson, CEO Scott F. Hartman,
and Controller Rodney E. Schwatken, violated Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 by issuing false
and misleading statements which misrepresented the growth of the
Company and its branch offices.

As alleged in the Complaint, throughout the Class Period
defendants reported record growth in the Company's earnings,
production, securities portfolio as well as highlighting the
increasing number of NovaStar branch offices.  The Company
reported that in 2003, it had doubled the number of branch
offices in operation as well as achieved record earnings growth.
However, it is alleged that NovaStar failed to maintain
regulatory compliance with its operations.

Instead of disclosing that several NovaStar branches were
operating illegally, defendants continued to tout NovaStar's
accomplishments, thereby artificially inflating the price of the
Company's stock. Defendant's perpetuated the illusion of
impressive growth to sell $110 million worth of the company's
equities to the investing public.

On April 12, 2004, The Wall Street Journal reported that the
Company grossly overstated the actual number of branch offices
NovaStar had in operation, as well as stating that NovaStar
operated numerous offices illegally in multiple states.
Following this announcement, the price of NovaStar shares fell
almost 31%, from $54.18 to $37.50 per share.

For more details, contact Andrew G. Tolan, by Phone:
888-476-6529 ((888) 4-POMLAW) or by E-mail: agtolan@pomlaw.com


NOVASTAR FINANCIAL: Zimmerman Levi Lodges Securities Suit in MO
---------------------------------------------------------------
Zimmerman, Levi & Korsinsky, LLP initiated a securities class
action in the United States District Court for the Western
District of Missouri on behalf of all purchasers of the
securities of Novastar Financial Inc. (NYSE:NFI), between
October 29, 2003 and April 8, 2004, inclusive.

The Complaint alleges that the defendants violated the federal
securities laws.  Specifically, the Complaint alleges that each
of the defendants knew, yet concealed from the investing public,
that:

     (1) the Company was operating branch offices in various
         states without obtaining the necessary licenses for
         such branches offices and was conducting business in
         violation of applicable laws and regulations;

     (2) the Company's growth through branch office expansions
         was grossly overstated as these branch offices either
         did not actually exist or were illegally conducting
         business in Nevada and elsewhere; and

     (3) the Company's projected growth would be halted once
         regulators discovered the defendants' unlawful and sham
         business practices.

In reaction to an April 12, 2004 news article describing
NovaStar's failure to comply with state licensing rules, its
inflating the number of branch offices in operation and its
operating many branch offices illegally, the price of Novastar
stock dropped from $54.18 per share to as low as $35.87 per
share on a trading volume of 11,556,000 shares.  On April 19,
2004, the SEC announced that it has begun an inquiry into
NovaStar's business practices.  In response the SEC inquiry, the
Company's shares continued to plummet to below $32 per share.

For more details, contact Eduard Korsinsky, Esq. by Mail: 39
Broadway, Suite 1440, New York, N.Y. 10006 by Phone:
(212) 363-7500 or (800) 835-4950 or by E-mail: ek@zlklaw.com


PARADIGM MEDICAL: Marc Henzel Lodges Securities Suit in UT Court
----------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the District of
Utah on behalf of purchasers of Paradigm Medical Industries,
Inc. (NasdaqSC: PMED) publicly traded securities during the
period from April 25, 2001 through May 14, 2003, inclusive.

The complaint charges that Paradigm and certain of its current
and former officers and directors violated Section 10b of the
Securities Exchange Act of 1934 by issuing a series of
materially false and misleading statements to the market
beginning on April 25, 2001 and continuing through December
2002. Paradigm develops and sells laser surgical systems,
including the Ocular Blood Flow Analyzer ("BFA").

The complaint alleges that Paradigm misrepresented in its
Securities & Exchange Commission ("SEC") filings and in press
releases that it had received authorization from the American
Medical Association for a Common Procedure Terminology code
facilitating insurance reimbursement to doctors for performing
medical procedures with the BFA. Additionally, the complaint
alleges that the Company misrepresented in a press release that
it had received a $105 million purchase order, when no such
purchase order existed. As a result of these misrepresentations,
according to the complaint, the price of PMED securities was
artificially inflated during the Class Period.

For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com


PEC SOLUTIONS: Marc Henzel Lodges Securities Lawsuit in E.D. VA
---------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the Eastern
District of Virginia on behalf of all purchasers of the common
stock of PEC Solutions Inc. (NasdaqNM: PECS) from October 22,
2002 through March 14, 2003, inclusive.

Throughout the Class Period, as alleged in the complaint,
defendants issued a series of materially false and misleading
statements concerning the Company's business, operations and
prospects. The Complaint alleges that these statements were
materially false and misleading when made as they failed to
disclose and misrepresented the following adverse facts, among
others:

     (1) that the Company was experiencing declining demand for
         its products and services as the failure of Congress to
         approve a budget for 2003 was causing governmental
         agencies to delay projects;

     (2) that the Company was experiencing material problems
         with certain of its biometric identification contracts
         and would not be generating the revenue that it had
         anticipated from those contracts; and

     (3) as a result of the foregoing, the Company was
         materially overstating the strength of its pipeline of
         projects and its prospects.

On March 14, 2003, after the close of the market, as alleged in
the complaint, PEC Solutions shocked the market when it issued a
press release announcing that it was revising its guidance for
the first quarter 2003 and for the year ending December 31,
2003. In response to this announcement, the price of PEC
Solutions common stock declined precipitously falling from
$15.80 per share to $9.81 per share, a decline of more than 37%,
on extremely heavy trading volume. During the Class Period,
prior to the disclosure of the true facts, the Individual
Defendants and other PEC Solutions insiders sold their
personally-held shares of PEC Solutions common stock to the
unsuspecting public reaping proceeds of more than $13 million

For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com


RYLAND GROUP: Marc Henzel Commences Securities Suit in C.D. CA
--------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the Central
District of California on behalf of purchasers of Ryland Group,
Inc. (NYSE: RYL) publicly traded securities during the period
between October 22, 2003 through January 7, 2004, inclusive.

The complaint charges Ryland Group, R. Chad Dreier, and Gordon
Milne with violations of Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder. Between October 22, 2003 and January 7, 2004, the
defendants issued a series of material misrepresentations to the
market concerning the Company's financial results.

More specifically, the defendants' statements during the Class
Period were materially false and misleading because they failed
to disclose and/or misrepresented the following adverse facts,
among others:

     (1) that the Texas market (and particularly Dallas) was in
         a freefall;

     (2) that Texas buyers were proving highly resistant to the
         entry level homes that Ryland Group was offering; and

     (3) that the defendants knew or recklessly disregarded that
         offerings of "move up" properties would be better
         received in that market, but that Ryland Group was not
         in a position to offer these types of properties.

On January 8, 2004, Ryland Group shocked the market by
announcing that new orders for the fourth quarter had decreased
8.9%, largely due to an astounding 33% decline in Texas orders.
Indeed, only 344 new homes were sold by Ryland Group in that
quarter, as contrasted with sales of 770 new units in the third
quarter of 2003. This development stood in stark contrast to the
positive statements issued during the Class Period by
defendants. Ryland Group stock dived $10.16, to $72.89 per
share, after closing at $83.05 per share on January 7, 2004 on
heavy trading volume.

For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com


SPX CORPORATION: Bernstein Liebhard Lodges Stock Suit in W.D. NC
----------------------------------------------------------------
Bernstein Liebhard & Lifshitz LLP initiated a securities class
action in the United States District Court for the Western
District of North Carolina on behalf of all persons who
purchased or acquired securities of SPX Corporation (NYSE:SPW)
between July 28, 2003 through February 26, 2004, inclusive.

The complaint charges SPX, John B. Blystone, Patrick J. O'Leary,
Ronald L. Winowieck, Christopher J. Kearney, and Lewis M. Kling
with violations of Section 10(b) and 20(a) of the Securities
Exchange Act of 1934, and Rule 10b-5 promulgated thereunder.
More specifically, the Complaint alleges that defendants failed
to disclose and indicate:

     (1) that the $60 million gain from a legal settlement with
         Microsoft made it possible for the Company to achieve
         analysts' numbers for fiscal year 2003;

     (2) that the Company's "core" business was deteriorating;

     (3) that the Company was suffering from operating
         weaknesses;

     (4) that defendants lacked a reasonable basis for their
         positive statements about the Company and its earnings
         projections; and

     (5) that, as a result of the foregoing, defendants were
         able to artificially inflate the value of its stock.

On February 26, 2004, after the market closed, SPX announced
that fourth quarter 2003 financial results were less than its
previously issued guidance. More specifically, SPX reported
fourth quarter 2003 results of $1.45 billion in revenues,
diluted earnings per share from continuing operations of $1.30,
and free cash flow from continuing operations of $303.8 million.
On February 27, 2004, the market reacted negatively to this news
with shares of SPX falling 21.20%, or $11.30 per share, to close
at $42.00 per share on heavy volume.

For more details, contact the Shareholder Relations Department
by Mail: Bernstein Liebhard & Lifshitz, LLP, 10 East 40th
Street, New York, New York 10016 by Phone: (800) 217-1522 or
(212) 779-1414 or by E-mail: SPW@bernlieb.com.


SUPERCONDUCTOR TECHNOLOGIES: Wechsler Harwood Lodges Suit in CA
---------------------------------------------------------------
Wechsler Harwood LLP initiated a securities class action on
behalf of persons or entities who purchased or otherwise
acquired the securities of Superconductor Technologies, Inc.,
(NasdaqNM:SCON) between January 9, 2004 and March 1, 2004, both
dates inclusive.

The action, entitled Alvarez v. Superconductor Tech., Inc., et
al., Case No. not yet assigned, is pending in the United States
District Court for the Central District of California (Western
Division) and names as defendants, the Company, its President
and Chief Executive Officer, M. Peter Thomas, and its Senior
Vice President and Chief Financial Officer, Martin S. McDermut.

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 between January 9, 2004 and
March 1, 2004, thereby artificially inflating the price of
Superconductor's common stock.

More specifically, the Complaint alleges that the Company failed
to disclose and misrepresented the following material adverse
facts which were known to defendants or recklessly disregarded
by them:

     (1) that the Company could not meet its projected first
         quarter revenues of $10 million and $13 million due to
         changes in demand made by two of the Company's
         customers;

     (2) that the defendants knew of the decreased demand for
         its product well in advance; and

     (3) that, as a result of the foregoing, defendants lacked a
         reasonable basis for their positive statements about
         the Company and their earnings projections.

On March 1, 2004, Superconductor revealed that it expected first
quarter 2004 total net revenues to reach only $4 million to $5
million. News of this shocked the market and shares of
Superconductor fell $1.86 per share, or 45.4 percent to close at
$2.23 per share.

For more details, contact Craig Lowther by Mail: Wechsler
Harwood LLP, 488 Madison Avenue, 8th Floor, New York, New York
10022 by Phone: (877) 935-7400 or by E-mail: clowther@whesq.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.

                            *********


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Class Action Reporter is a daily newsletter, co-published by
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Copyright 2004.  All rights reserved.  ISSN 1525-2272.

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