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/raid1/www/Hosts/bankrupt/CAR_Public/040630.mbx C L A S S A C T I O N R E P O R T E R Wednesday, June 30, 2004, Vol. 6, No. 128 Headlines ADECCO SA: Gets Subpoena From U.S. Agencies Over Delayed Results ARGENTINA: Hagens Berman Files NY Lawsuit Over $88 Billion Bonds CALIFORNIA: Talks Continue With ACLU On School Performance Suit CANADA: Businessman Planning Suit Against Possible Jetski Ban CARPET DRYCLEAN: Enters Consent Judgment Over Unsolicited Calls DAIMLERCHRYSLER CORPORATION: OK Court Allows Air Bag Lawsuit EXXON DEALERSHIP: Garden Group Announces Settlement Deadline HUNGARIAN JEWS: U.S. Seeks Suit Dismissal, Denies Responsibility LAETRILE VENDOR: NY Trader Sentenced Over Illegal Cancer Drug M&P FINE: Recalls Asian Noodle Bowl Due To Undeclared Soybeans MASSACHUSETTS: Faces Suit Over Public Defender Statutory Rates MENORAH GARDENS: Plaintiffs Given More Time To Opt Out or Join MICROSOFT CORPORATION: AZ Court Okays Antitrust Suit Settlement NASH FINCH: MN Court Dismisses Shareholder, Derivative Lawsuits ORACLE CORPORATION: Court Hears Appeal of Stock Suit Dismissal ROYAL DUTCH: SEC Questions Employees Over Disclosure of Reserves UNITED STATES: Oglala Sioux Sue Interior Dept Over Royalties UNITED STATES: Guantanamo Prisoners To Appeal Detention, Status UNITED STATES: Ruling In Dura Case To Affect Claims WELLS FARGO: Advocacy Group Launches Unfair Trade Practices Suit Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals * Online Teleconferences New Securities Fraud Cases GENTA INC.: Scott + Scott Launches Securities Fraud Suit in NJ HANGER ORTHOPEDIC: Lasky & Rifkind Lodges Securities Suit in NY HANGER ORTHOPEDIC: Schatz & Nobel Lodges Securities Suit in NY HANGER ORTHOPEDIC: Wolf Popper Lodges Securities Suit in E.D. NY KEY ENERGY: Federman & Sherwood Files Securities Suit in W.D. TX KEY ENERGY: Lasky & Rifkind Lodges Securities Lawsuit in W.D. TX LIQUIDMETAL TECHNOLOGIES: Scott + Scott Files CA Securities Suit MERIX CORPORATION: Schatz & Nobel Lodges Securities Suit in OR NBTY INC.: Lerach Coughlin Launches Securities Suit in E.D. NY SHAW GROUP: Lasky & Rifkind Lodges Securities Lawsuit in E.D. LA SHAW GROUP: Lerach Coughlin Lodges Securities Lawsuit in E.D. LA SHAW GROUP: Schatz & Nobel Lodges Securities Lawsuit in E.D. LA SYNOVIS LIFE: Schatz & Nobel Lodges Securities Fraud Suit in MN VICURON PHARMACEUTICALS: Lasky & Rifkind Lodges PA Stock Suit ********* ADECCO SA: Gets Subpoena From U.S. Agencies Over Delayed Results ---------------------------------------------------------------- The Swiss temporary employment company, Adecco S.A. announced that several regulatory agencies are conducting inquiries related to the company's delayed financial results for 2003, the Associated Press WorldStream reports. One of the agencies, the Securities and Exchange Commission is conducting an informal inquiry concerning events leading up to the company's January announcement that it wouldn't deliver 2003 results on time. In a filing Monday with the Securities and Exchange Commission, Adecco also said that the U.S. Department of Justice issued a grand jury subpoena for "a variety" of its records. Adecco said its response to the Justice Department's inquiry has been delayed while the company provides information to the SEC. According to Monday's filing the Swiss Stock Exchange and Swiss Federal Banking Commission are also opening investigations into Adecco's accounting problems. Also in Monday's filing, Adecco said eight class-action lawsuits have been filed in the United States against the company and some of its current and former officers and directors. There had been speculation that Ernst & Young had ended its ties to Adecco, but the audit firm signed off on Monday's financial report for Adecco's year ended December 28, 2003. ARGENTINA: Hagens Berman Files NY Lawsuit Over $88 Billion Bonds ---------------------------------------------------------------- The law firm of Hagens Berman on behalf of a group of bondholders initiated a proposed class-action suit against the Argentine government, bringing the fight over the country's default of $88 billion in bonds to the U.S. courts. Once approved by the court, the proposed class would cover more than five hundred thousand investors primarily from Italy, Germany, France and the United States who purchased the government-issued bonds. This move will almost certainly raise the stakes in the standoff between Buenos Aires and the bondholders. If successful, the case would allow bondholders to seize Argentine government assets in the United States and use those assets to repay bondholders. Filed in U.S. District Court in New York, the complaint states that the moratorium on foreign debt declared by Argentina on December 23, 2001 and its subsequent lack of payment on bonds constitutes a default of the bond agreement made between the government and its bondholders. This is the first major suit seeking a global settlement for all purchasers of Argentine bonds. The complaint seeks compensation for damages sustained by bondholders and payment of the cost of suit fees incurred by bondholders. "The majority of these investors were individuals investing their retirement funds, not savvy institutional investors seeking a quick profit," said Steve Berman, lead attorney representing the bondholders. "But just because they're small, doesn't mean that they are powerless. This suit proves that, and we intend to use the power of the class-action mechanism to turn these investors into a nation state that can stand up to Argentina." During the late 1990s thousands of individual investors helped revive and stabilize Argentina's struggling economy by purchasing government-issued bonds, with the promise that the Argentine government would make payments on the debt securities in U.S. dollars in New York. However, when the government declared a moratorium, it reneged on its agreement to pay the full principal and interest as detailed in various bond agreements, according to the suit. "The Argentine government made a clear and binding agreement with bondholders to pay principal and interest at due times," said Berman. "The government's moratorium and unwillingness to negotiate with bondholders on the issue made it evident that it did not intend to honor its contract, and that we in turn would have to use litigation to get their attention." If the court finds that the Argentine government illegally defaulted on the bonds, its commercial assets in the United States, including bank accounts and state-owned companies, could be seized and used to compensate class members. The proposed class includes all investors who purchased and held Argentine bonds prior to December 23, 2001. The Argentine government's default is the largest in history, with the aforesaid bond debt alone totaling $99.4 billion including interest. Argentina's default has had a widespread effect on the personal finances of investors around the world, and many bondholders have suffered extreme financial loss due to their trust that the Argentine government would uphold its agreement, the suit claims. Since defaulting on its foreign debt in 2001, Argentina has sought to negotiate with various creditors. However, according to Berman, the government has been unwilling to participate in good faith negotiations, despite an agreement with the International Monetary Fund (IMF) to do so. Recently, Argentina offered new securities that would leave investors with a loss of 75 cents per $1 of defaulted debt. Economic analyst for Austrian-based Raiffeisen Research, Gintaras Shlizhyus, says that without pressure from investors and the IMF the Argentine government is unlikely to improve its offer. According to Shlizhyus, Argentina has showed a resolute "unwillingness to pay" bondholders and may not do so "unless forced to a table with a gun to its head." For more details, contact Steve Berman of Hagens Berman by Mail: 1301 Fifth Avenue, Suite 2929, Seattle, WA 98101 by Phone: 206-623-7292 by Fax: Fax 206-623-0594 by E-mail: steve@hagens-berman.com or visit their Web site: http://www.hagens-berman.comOR Mark Firmani of Firmani & Associates, Inc. by Mail: 2505 2nd Avenue, Suite 700, Seattle, WA 98121 by Phone: 206-443-9357 or by E-mail: mark@firmani.com CALIFORNIA: Talks Continue With ACLU On School Performance Suit --------------------------------------------------------------- California Gov. Arnold Schwarzenegger is in negotiations to settle a class action filed by the American Civil Liberties Union (ACLU), over budget allocations for low-performing schools, the Associated Press reports. The ACLU filed the suit on behalf of hundreds of school children in 18 different school districts, seeking reform of the state's oversight and management of school districts. In response, then-Gov. Gray Davis countersued the school districts to force them to fix allegedly shoddy classrooms, provide current textbooks and hire credentialed teachers as required under state law. The lawsuit further alleged that the districts fell short in several areas, including: (1) schools that are overcrowded and in deplorable condition, with leaky roofs, poor plumbing, rodent and insect infestations; (2) insufficient or out-of-date textbooks; (3) large numbers of uncredentialed teachers or high turnover of teachers "There were decades of neglect," Mark Rosenbaum, an ACLU attorney involved with the lawsuit, told AP. "These were schools in name only." If the suit is settled, it could mean an allocation of $138 million for low-performing schools in this year's budget. Those schools could use the money to buy textbooks and instructional materials if the state and the American Civil Liberties Union agree that poor and minority students are being neglected. That Schwarzenegger is even considering setting aside money to settle the Williams case, a four-year-old class action lawsuit, is a good sign, Kevin Gordon, executive director of the California Association of School Business Officials, told AP. "There's no question that the governor and most of the education community are really committed to see this settled," Gordon said. Education advocates feared the suit could lead to the state micromanaging schools, or a one-size-fits-all approach to ensure poor or minority children aren't getting left behind, he added. "It's a delicate situation because we don't want a state rodent monitor or statutes that require ambient temperatures in classrooms be at a certain level," he said. "On the other hand . they have very compelling evidence that poor and minority students are getting shortchanged." Rosenbaum and other attorneys involved in the case have been ordered not to discuss details of the settlement negotiations, but the two sides will return to court in San Francisco on Wednesday to report to a judge on the progress of those talks. The administration and plaintiffs are trying to figure out how much money to set aside in the 2004-05 budget should a settlement be reached in the next year, several sources close to the negotiations confirmed, the Associated Press states. CANADA: Businessman Planning Suit Against Possible Jetski Ban ------------------------------------------------------------- A Maroochydore jetski company owner plans to file a lawsuit against the Noosa Council in Canada, over its draft Noosa River Plan, banning jetskis from the river, the Sunshine Coast Daily reports. The Council recommended the banning of recreational jetskis on the river as a medium priority because of noise and amenity disturbances and safety concerns from excessive speed and aggressive riding. "There is an incompatibility between this type of activity and the Noosa recreation experience - that is the enjoyment of the area's scenic qualities and its tranquil natural environment," the plan says. Owner Rod Kamp sent an eight-page submission to the council, saying that they were "serious about protecting its rights are registered licensed waterway users." Mr. Kamp is allegedly backed by personal watercraft manufactures and "wealthy Noosa landowners." "We have an unrestricted budget for legal costs and believe that it is an issue of principle," Mr. Kamp told the Sunshine Coast Daily. He added that noise, speed, dispersing of fish schools and the "recreation experience" issues were not backed by sufficient research. "They have based their opinions on unsubstantiated claims and the complaints on a small minority of `serial complainers' which they have no record of," he told the Sunshine Coast Daily. "I strongly suggest that the best answer for the small percentage of non-compliant personal watercraft users is vigilant policing." Noosa Mayor Bob Abbot immediately rejected the claim that the plan was without evidence. "For him to say that about our research and to threaten us, that is his decision, but we have had significant support for this proposal," he told Sunshine Coast Daily. "If he wants to resolve this through legal action he's not only fighting council, he's fighting the community." CARPET DRYCLEAN: Enters Consent Judgment Over Unsolicited Calls --------------------------------------------------------------- North Carolina Attorney General Roy Cooper announced that Carpet DryClean, Inc. of Raleigh has agreed to stop using illegal recorded messages in its sales calls to Triangle residents and to abide by all telemarketing laws. "Not only are these prerecorded calls illegal and annoying, but they cause real problems for seniors who depend on their phone as a lifeline," said AG Cooper. "Simply hanging up doesn't end these calls, so we went to court to make this company stop." Under terms of a consent judgment approved today by Wake County Superior Court Judge Robert H. Hobgood, the Company and its owner and manager Preston E. Laughinghouse must stop using automatically dialed, prerecorded telemarketing pitches and will pay $25,000 to the state. The Company has also agreed to dispose of the equipment it used to make pre-recorded telemarketing calls and to comply with all laws that govern telemarketing, including North Carolina's Do Not Call law. In addition, the company will pay a penalty of $5,000 per illegal call for any future violations of the judgment. As alleged in the complaint filed by Cooper in October 2002, Carpet DryClean began promoting its carpet cleaning service through telemarketing sometime in or before 1999. The company automatically dialed telephone numbers and then played a lengthy recorded sales pitch that often filled up consumers' answering machines or voice mail. Prerecorded marketing calls are illegal in North Carolina unless a live operator first asks if the consumer wants to hear the taped message. Consumers who received these calls from Carpet DryClean reported that no live person introduced the sales pitch and that the recording did not disconnect when they hung up the phone. At one point, consumers reported that the Company's message failed to disclose information about how to contact the company at the beginning of the recorded message. That forced people who wanted to be taken off the Carpet DryClean call list to listen to the entire, lengthy sales pitch. In many cases, consumers who waited through the message, contacted the company and asked to be removed from the call list continued to receive calls. The Attorney General was assisted by the Better Business Bureau of Eastern North Carolina in collecting consumer complaints about calls from Carpet DryClean. A total of 52 consumers have complained about the calls. To cut down on telemarketing calls, consumers can sign up for the Registry by visiting www.nocallsnc.com or by calling 1-888- 382-1222 from the number they wish to register. A total of 1.9 million North Carolina numbers have been placed on the list since it began in July 2003. Consumers who have signed up can report telemarketers who call them to AG Cooper's office by calling 1-877-5-NO-SCAM toll-free within the state or by going to the website. "People across our state have taken steps to keep telemarketers from bothering them at home," said AG Cooper, "But if the telemarketers keep calling, we want to hear about it so that we can put a stop to these unwanted calls." For more details, contact Noelle Talley, Public Information Officer, N.C. Department of Justice by Phone: (919) 716-6484 or (919) 716-6413 by Fax: (919) 716-0803 or by E-mail: ntalley@ncdoj.com. DAIMLERCHRYSLER CORPORATION: OK Court Allows Air Bag Lawsuit ------------------------------------------------------------ Oklahoma Supreme Court refused to stop a U.S. class-action lawsuit over the safety of minivan air bags, ruling that DaimlerChrysler Corporation could face a lawsuit by up to 1 million owners of 1996 and 1997 minivans, in Oklahoma court but under a Michigan law, AP Online reports. Lawyers for two van owners had filed the lawsuit, claiming that front passenger seat air bags in the minivans deploy in low- speed accidents and with excessive force, potentially hurting children or small adult passengers. A judge who supported giving the case U.S. class-action status noted that it would cost $300 to $500 to replace air bags in each vehicle, and that no individual van owner would find an attorney willing to handle such a small case. The Oklahoma Supreme Court ruled last year that the lawsuit could go forward, under Michigan law because that's where DaimlerChrysler is based. The carmaker's Washington attorney, Miguel Estrada, said that such a trial would be unconstitutional, AP reports. The case is DaimlerChrysler Corp. v. Ysbrand and Cooney, 03- 1342. For more details, contact Miguel Estrada of Gibson, Dunn & Crutcher LLP by Mail: 1050 Connecticut Avenue, N.W., Washington, District of Columbia 20036-5306 by Phone: 202-955-8500 by Telecopier: 202-467-0539 or by E-mail: mestrada@gibsondunn.com EXXON DEALERSHIP: Garden Group Announces Settlement Deadline ------------------------------------------------------------ The Garden Group, Inc., Settlement Administrator issued the following statement to all current or former direct served Exxon dealers: If you owned or operated a direct served Exxon station between March 1, 1983 and August 28, 1994, you may be a member of a class, which won a jury verdict against Exxon Corporation, and you may be entitled to recover money. You may also be eligible if you acquired or inherited an Exxon dealer's rights. For more details, contact The Garden Group, Inc., Settlement Administrator by Phone: 1-866-808-3595 or visit the following sites: http://www.exxondealerclassaction.comor http://www.prnewswire.com/broadcast/12370/consumer.shtml HUNGARIAN JEWS: U.S. Seeks Suit Dismissal, Denies Responsibility ---------------------------------------------------------------- In response to claims of Army wrongdoing and a decades-long cover-up alleged in a lawsuit filed three years ago over lost riches of Hungarian Jews during World War 2, the Justice Department has asked a federal judge to throw out the lawsuit, the AP Online reports. Justice spokesman Charles Miller also reiterated in court papers that the United States bears no responsibility for the lost riches that were supposedly plundered after the collapse of Nazi Germany. The government instead acknowledged "the immeasurable and tragic losses" suffered by Jews in the Holocaust but minimized the holdings of Hungarian Jews on the Nazi "Gold Train" intercepted by U.S. forces in 1945. The dismissal request claims, among other things, that the Hungarian government assumed responsibility for the claims in two treaties and the claims are too old to pursue in court. But according to Sam Dubbin, attorney for Hungarian Holocaust survivors and their families, argued that the government "is callously blaming the victims and using legal technicalities that our nation has opposed all over the world when it comes to justice for Holocaust survivors." The families claim $50 million to $120 million in gold, jewels, art and other valuables was taken from 800,000 Hungarian Jews by Nazi Germany and later by the U.S. Army, from generals on down from the train that wound its way through Hungary and Austria. The American government had denied the train even existed until a 1999 report on Holocaust assets by a commission named by President Clinton. The government's renewed move to erase the claims comes weeks before a Washington attorney is due to launch mediation. It also comes in the wake of a request in May by a bipartisan group of 17 U.S. senators urging "a fair and expeditious resolution." About 30,000 Hungarian Jews and their survivors seek a trial on class-action claims of large-scale looting and official denials about the train. For more details, contact Samuel J. Dubbin of Dubbin & Kravetz, LLP by Mail: 220 Alhambra Circle (Coral Gables) - Suite 400, Miami, Florida 33134 (Miami-Dade Co.) by Phone: 305-357-9004 by Fax: 305-357-9050 or by E-mail: sdubbin@dubbinkravetz.com LAETRILE VENDOR: NY Trader Sentenced Over Illegal Cancer Drug ------------------------------------------------------------- Jason Vale, president of the New York-based Christian Brothers Contracting Corporation, was sentenced on June 18, 2004 to 63 months in prison and 3 years of supervised release by a United States District Court in the Eastern District of New York. The Food and Drug Administration (FDA) announced the sentencing as the outcome of its investigative efforts by the Office of Criminal Investigations, conducted jointly with the United States Attorney's Office (USAO) for the Eastern District of New York and the New York Division of the United States Postal Inspection Service (USPIS), to bring to justice a businessman who had victimized cancer patients by heavily advertising and selling Laetrile, a highly toxic product that has not shown any effect on treating cancer. "There is no scientific evidence that Laetrile offers anything but false hope to cancer patients, some of whom have used it instead of conventional treatment until it was too late for that treatment to be effective," said Dr. Lester M. Crawford, Acting FDA Commissioner, in a statement. "This sentence sends a strong message that we will not tolerate marketing of bogus medicines." Following the investigation by FDA, the USAO, and the USPIS, the U.S. District Court for Eastern District of New York placed Mr. Vale's illegal sales and promotion of Laetrile - also known as amygdalin, "Vitamin B-17", or apricot pits - under injunction in April 2000. Defying the court order, Mr. Vale set up a shell corporation in Arizona, and continued to ship the product from the basement of his own home to customers passed on to him by his New York firm. For these activities, he was found guilty 11 months ago of three counts of criminal contempt, and ordered held without bail pending his sentencing. Last week, the court also found that Mr. Vale, who had made at least $500,000 from his illegal sales of Laetrile, had committed fraud in his marketing of Laetrile. In addition, Mr. Vale defrauded the U.S. government by claiming that he qualified for Legal Aid. As a result, Mr. Vale was ordered to reimburse the government $31,000 for the costs of his appointed defense attorney. M&P FINE: Recalls Asian Noodle Bowl Due To Undeclared Soybeans -------------------------------------------------------------- M&P Fine Foods dba Bento & Co, Lynnwood, WA is recalling its 12 ounce packages of Asian noodle bowl VEGETARIAN YAKISOBA and Asian noodle bowl yakisoba w/vegetables because they contain undeclared soybeans, wheat, yellow #5, and yellow #6. People who have allergies to soybeans run the risk of serious or life- threatening allergic reaction if they consume these products. The recalled Asian noodle bowl VEGETARIAN YAKISOBA and Asian noodle bowl yakisoba w/vegetables were distributed throughout the Puget Sound, Washington area in retail stores, institutions, and cafeterias. The products come in a 12 ounce, clear plastic package with "0629" or "0627" ink stamped on a sticker on the top of the package. No illnesses have been reported to date in connection with this problem. The recall was initiated after it was discovered that the soybeans, wheat, yellow #5 and yellow #6 containing products were distributed in packaging that did not reveal their presence. Subsequent investigation indicates the problem was caused by a temporary breakdown in the company's production and packaging processes. Production of the product has been suspended until FDA and the company are certain that the problem has been corrected. Consumers who have purchased 12-ounce packages of Asian noodle bowl VEGETARIAN YAKISOBA and Asian noodle bowl yakisoba w/vegetables are urged to return them to the place of purchase for a full refund. Consumers with questions may contact the company at 1-425-787-5864. MASSACHUSETTS: Faces Suit Over Public Defender Statutory Rates -------------------------------------------------------------- The state of Massachusetts faces a sweeping lawsuit filed in the Supreme Judicial Court, over the rate that the state pays its public defenders, the Boston Globe reports. Massachusetts currently pays its attorneys only $30 an hour in most court-appointed cases, the lowest statutory rate in the country. As a result, the number of private lawyers who take such cases has been reduced by more than 200 in the past five years. Therefore, children and poor people are struggling to obtain lawyers in criminal and civil cases and the system "teeters on the brink of collapse." The lawsuit was filed on behalf of four minors who are in foster care, the father of a child in foster care, and a criminal defendant, all of whom have struggled to find a lawyer to represent them. Many judges, prosecutors, and defense lawyers agree that private lawyers appointed to represent the children and the poor through the Committee for Public Counsel Services are grossly underpaid. The current hourly rates are $30 for district court cases, $39 for superior court cases, and $54 for murder cases. The $30 rate is the lowest set by statute of any state in the nation, lawyer Joshua Krumholz of Holland & Knight told the Boston Globe. New Jersey pays $25 an hour, he said, but the rate is set by the state public defender agency. The states public defender earlier recommended that court- appointed lawyers be paid $60 an hour for district court cases, $90 an hour for superior court cases, and $120 an hour for murder cases. The problem, Robert J. Zanello, a seasoned criminal defense lawyer who often represents poor defendants in Superior Court, told the Boston Globe, is that taxpayers are generally unsympathetic to such people. "It's just a situation where the government or state doesn't want to pay a fair rate . to lawyers who represent people that society, as a whole, thinks, `They're guilty,'" he said. An earlier suit was filed by the state public defender agency The suit was filed on behalf of children and poor litigants, asks the Supreme Judicial Court to appoint a special master to study the system statewide. The SJC already plans to hear arguments tomorrow in a lawsuit brought by the state public defender agency against district and superior court judges in Hampden County, where 53 defendants have been held in jail for as long as nearly three months awaiting bail reviews because of a shortage of court-appointed lawyers. However, the suit only asks the SJC to address the problem in that county. The current suit says that the entire system is broken and needs to be fixed. "Our view is that there's a systemic failure, and we're asking the court for systemic relief," Mr. Krumholz told the Boston Globe. "It's at the point of crisis." His firm has been involved in similar suits in other states that led to higher pay for some court-appointed lawyers, including in Florida, Mississippi, Alabama." Nicole St. Peter, a spokeswoman for Governor Mitt Romney, said he does not comment on pending litigation, the Boston Globe reports. MENORAH GARDENS: Plaintiffs Given More Time To Opt Out or Join -------------------------------------------------------------- Families suing the Menorah Gardens cemetery chain in Palm Beach County Circuit Court will have additional time to decide whether to join or opt out of a $100 million settlement in a Broward County class action case in the gravesite scandal, the Palm Beach Post Online reports. Under the settlement, families had a Thursday deadline. That posed a dilemma for about 70 people with loved ones in Menorah Gardens cemeteries who had separately sued Menorah and Service Corp. International in 2002. Their lawyers have argued that the terms of the December settlement in the Broward County case might cap punitive damages even for those who opted out of the class action lawsuit, including their clients. The lawyers asked Broward County Circuit Judge J. Leonard Fleet to let them intervene before he holds hearings in mid-September on whether to certify the terms of the class action settlement. Fleet said the lawyers will have to wait until the hearing in September. But he said he will create a second deadline for clients in the Palm Beach County case. For more details, contact Lead Counsel Ervin A. Gonzalez of Colson Hicks Eidson and Greenspoon, Marder by Mail: 255 Aragon Ave., 2nd Floor, Coral Gables, FL 33134 by Phone: 305-476-7400 by Fax: 305-476-7444 or by E-mail: Ervin@colson.com OR The Garden City Group, Inc. by Mail: P.O. Box 8856, Melville, NY 11747-8856 by Phone: 1-866-808-3581 or 1-866-476-7400 by E-Mail: cemeteryclaimsinquiry@gardencitygroup.com or visit their Web Site: www.cemeteryclaims.com MICROSOFT CORPORATION: AZ Court Okays Antitrust Suit Settlement --------------------------------------------------------------- The Maricopa County Superior Court in Arizona granted preliminary approval to the settlement proposed by Microsoft Corporation for a class action, charging it with violating the state's antitrust laws, the Associated Press reports. The class action case before Judge O'Melia was brought by Brian Goodwin, Marty Harper, Lori Berke and Kelly Flood of the Phoenix office of Shughart Thomson & Kilroy PC. Their case was later consolidated with a similar one brought by San Diego attorneys Len Simon, Mike Dowd and Frank Janacek of Lerach Coughlin Stoia & Robbins LLP. Maricopa County judge Michael O'Melia approved the settlement, which could have a maximum value of 104.6 million, according to attorney for the plaintiffs Brian Goodwin, AP reports. Under the settlement, the Company will provide vouchers to all class members in Arizona who bought Microsoft operating systems or software between January 1, 1996 and December 31, 2002. The members of the class will get vouchers worth $15 for operating systems and $9 for applications. The Company also agreed to give half of the unclaimed vouchers to Arizona's public schools. If people claim vouchers but fail to use them, 50 percent of those unused vouchers also will go to the schools. The vouchers will go to those districts in which 50 percent or more of the students are eligible for free or reduced-fee lunches, AP reports. Notices will be published seeking members of the class, which comprises around 7.8 million Microsoft licensees, one for each product sold, before the final fairness hearing is held December 10, 2004. "We're pleased by the opportunity to help schools all across Arizona get the computers and software they need," Microsoft general counsel Brad Smith said, AP reports. Plaintiffs' lawyer Brian Goodwin told AP the settlement is significant because it established that consumers can bring antitrust actions under Arizona state law. The suit is styled "Charles I. Friedman, PC, The Power PEO, Inc. v. Microsoft Corporation, Case No. CV2000-000722," was filed in the Superior Court of Maricopa County, Arizona, under Judge Michael O'Melia. Attorneys Marty Harper, Lori Berke and Brian Goodwin represent the plaintiffs, while Attorney William Maledon is counsel for the defendant. Final Fairness Hearing is set for December 10,2004 at 10:00 am. NASH FINCH: MN Court Dismisses Shareholder, Derivative Lawsuits --------------------------------------------------------------- Nash Finch Company (Nasdaq:NAFC), a leading national food retailer and distributor, today announced that the United States District Court for the District of Minnesota has dismissed with prejudice the securities class action filed against the Company and certain of its executive officers in June 2003, which consolidated eight separate class actions previously filed in late 2002 and early 2003. The consolidated action alleged that the defendants violated the Securities Exchange Act of 1934 by purportedly issuing false statements about the Company's business and financial results in connection with vendor promotions. In addition, the consolidated shareholder derivative actions that were filed in Minnesota state court against Nash Finch's Board of Directors and certain officers have also been dismissed with prejudice. The derivative actions arose out of the same set of allegations as the federal action. The dismissals are subject to appeal. ORACLE CORPORATION: Court Hears Appeal of Stock Suit Dismissal -------------------------------------------------------------- The United States Ninth Circuit Court of Appeals heard oral arguments on plaintiffs' appeal of the dismissal of the consolidated securities class action filed against Oracle Corporation, its chief executive officer, its chief financial officer and a former Executive Vice President. The consolidated suit, filed in the United States District Court for the Northern District of California, Chief was brought on behalf of purchasers of the Company's stock during the period from December 15, 2000 through March 1, 2001. Plaintiffs alleged that the defendants made false and misleading statements about the Company's actual and expected financial performance and the performance of certain of its applications products, while certain individual defendants were selling Oracle stock in violation of Federal securities laws. Plaintiffs further alleged that certain individual defendants sold Oracle stock while in possession of material non-public information. On March 12, 2002, the court granted the Company's and the individual defendants' motion to dismiss the amended consolidated complaint. On April 10, 2002, plaintiffs filed a first amended consolidated complaint and on September 11, 2002, the court granted defendants' motion to dismiss that complaint. On October 11, 2002, the plaintiffs filed a second amended complaint. In this second amended complaint, the plaintiffs added allegations that the defendants engaged in accounting violations and made misstatements about the Company's financial performance, beginning on December 14, 2000 through March 1, 2001. On March 24, 2003, the Court dismissed the second amended complaint with prejudice. Plaintiffs appealed that dismissal and, on August 11, 2003, filed their appellate brief in the United States Court of Appeals for the Ninth Circuit. Defendants filed their response on October 8, 2003 and plaintiffs filed their reply on November 26, 2003. The Court of Appeals heard oral argument on plaintiffs' appeal on April 12, 2004. ROYAL DUTCH: SEC Questions Employees Over Disclosure of Reserves ---------------------------------------------------------------- The United States Securities and Exchange Commission questioned thirty employees of Royal Dutch/Shell Group over the Company's alleged improper disclosure of reserves, company executives told the Agence France-Presse. The SEC probe started informally after Shell first downgraded of its proven oil and gas reserves in January. That and subsequent downgrades reduced the company's proven reserves at the end of December 2002 by 4.47 billion barrels of oil equivalent, or about 23 percent. Reserves are the amount of oil and gas a company expects to pump to the surface. They are a crucial measure of an oil firm's performance and future value. The oil giant faces several securities class actions filed in New Jersey federal courts, alleging that 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 and artificially inflating a key measure of the companies' financial position and competitive standing, an earlier Class Action Reporter story (March 30, 2004) reports. SEC officials probed the employees at the group's annual meeting yesterday, held concurrently in The Hague and London. Shareholders at the meeting were told that rebuilding Shell's depleted reserves was "a major priority", AFP reported. UNITED STATES: Oglala Sioux Sue Interior Dept Over Royalties ------------------------------------------------------------ The Oglala Sioux Tribe filed a federal lawsuit in the United States District Court for the District of Columbia, against the United States Interior Department, seeking a full accounting of the land and money the department managed for the tribe, the Associated Press reports. The Tribal Council voted to start the suit. According to Gary Frischer, a legal consultant involved in the lawsuit, the Santee Sioux Tribe, the Crow Creek Sioux Tribe, the Yankton Sioux Tribe and the Omaha Tribe also are pursuing the trust fund issue in court. The suit alleges that the defendants "have kept and continue to keep the Tribe, as the trust beneficiary, uninformed as to the trust property it owns, what income the trust property has produced, and what disposition has been made of the income," AP reports. The suit is similar to a 1996 class action filed against the Interior Department on behalf of more than 300,000 Indians nationwide, seeking federal accounting for trust funds owed to individual Indians. The suit alleged that for more than 100 years, the government mismanaged or stole billions of dollars in oil, gas, timber and grazing royalties. A federal judge has ruled that the Interior Department breached its trust responsibility and ordered the department to tally what the Indians are owed. The Department has said that it would take at least five years to account for all the money. The Oglala Sioux suit seeks a court order requiring federal officials to give a full and complete accounting of land and money held in trust for the tribe. It asserts that the extent of the tribe's loss is unknown because federal officials have failed to maintain accurate records, lost or destroyed some records and failed to disclose some information, AP reports. Lydia Bear Killer, one of tribal council members who helped lead the effort to file the lawsuit, told AP the attempt to get a financial accounting started when some tribal members seized the tribal council building in Pine Ridge several years ago. Tribal members need to know what has happened to land and money that the federal government holds in trust for the tribe, Bear she said. "Hopefully, this is one step that will bring the people back together," she said. "We're concerned a full historical accounting with assets and finances needs to happen for the tribe." UNITED STATES: Guantanamo Prisoners To Appeal Detention, Status --------------------------------------------------------------- The United States Supreme Court ruled that the United States government could not hold some 600 foreigners in Guantanamo, Cuba as suspected terrorists, Seven News reports. Australians David Hicks and Mamdouh Habib are two of the inmates in Cuba, most of which were captured during the Afghan war in 2001 and have spent more than two years in secret detention without access to lawyers. Mr. Hicks and five others have been slated to appear before a military tribunal. The high court ruled that US courts had jurisdiction to hear appeals by inmates, challenging their designation as "enemy combatants" ineligible for usual US legal rights. The ruling was a turning point for the prisoners as well as a sharp setback for the Bush administration's anti-terrorist policies that had been criticized for short-circuiting civil liberties in the name of national security. Steven Shapiro, legal director of the American Civil Liberties Union, told Seven News the ruling, along with a similar judgment issued in the case of a Saudi-raised American held on US soil, were "enormously important." The court rejected "the government's really unprecedented claim that because he was engaging in a war against terror, the president as commander-in-chief can do whatever he wants, whenever he wants to whomever he wants without any meaningful review by any of the other branches of government", Mr. Shapiro continued. Lawyers for the Centre for Constitutional Rights (CCR), who filed the complaint that produced the ruling, said their first step would now be to ask the government for permission to visit their clients. In future proceedings, the government will be obliged to justify the detentions, said the group, which represents about a dozen inmates and remains in contact with the families of some 50 others. "It is now incumbent upon the United States to demonstrate on an individual basis, through a fair process, that they have a right to detain these people," CCR lawyer Joe Margulies told Seven News. "I suspect that most, if not all of them, are now going to seek some sort of relief in the federal courts," Mr. Shapiro said. "There may be some efforts to coordinate individual suits into a single class-action habeas proceeding." UNITED STATES: Ruling In Dura Case To Affect Claims ---------------------------------------------------- The United States Supreme Court is set to investigate a lower- court ruling involving Dura Pharmaceuticals, over the calculation of liabilities in securities fraud, FT.com reports. The ruling might affect cause class action claims for billions of dollars to be heavily scaled. Lawyers representing the Company have alleged that the law is unclear when determining the potential for investors seeking redress after accounting or other wrongdoing at a company causes shares to fall. The starting point for determining loss had traditionally been the price of the shares just before a company admitted something was wrong and made a public "corrective disclosure", Jeffrey Barrack of Barrack Rodos & Bacine, the law firm leading the class action in the WorldCom fraud case, told FT.com. However, investors believe that shares often fall from much higher peaks than that just before an adverse public announcement. The investor losses therefore should be calculated from periods when the market was being deceived about the true worth of a company and the share price was still climbing. The U.S.' Ninth Circuit Court of Appeals has tended to be in favor of the more expansive view of liability. The Supreme Court can either decide to take a position at the other end of the argument, limiting the potential liabilities just to falls from the share price at the point of public disclosure of trouble. Class action lawyers involved in high profile cases like Enron are watching the case closely. Some lawyers believe the Supreme Court's deliberations could cause other banks on Wall Street to wait and see if potential liabilities are cut, FT.com reports. WELLS FARGO: Advocacy Group Launches Unfair Trade Practices Suit ---------------------------------------------------------------- Wells Fargo & Co. faces a potential class action to be filed by the Association of Community Organizations for Reform Now (ACORN) in California State Court, alleging unfair and deceptive lending practices, the San Mateo Daily Journal reports. The national advocacy group for low-income people said in the suit that the financial services firm misleads borrowers about the real terms and conditions of loans and employs "bait-and- switch" sales tactics. The firm also allegedly failed to inform borrowers with good credit that they can qualify for credit at significantly better rates and fees than those charged by the company. ACORN also filed a suit against Fargo's Wells Fargo Financial unit, of Des Moines, Iowa earlier this month, for alleged violation of an Illinois law that prohibits loans with interest rates above 8 percent from having fees greater than 3 percent. Wells Fargo said Monday the allegations are "false and totally contrary to (its) ethical standards and business practices," the San Mateo Daily Journal reports. The financial service company also said the allegations are "deliberate attempts to distort and misrepresent our business practices and procedures." Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals ------------------------------------------------- July 16, 2004 PRODUCTS LIABILITY ALI-ABA Chicago Contact: 215-243-1614; 800-CLE-NEWS x1614 July 22-23, 2004 ASBESTOS LITIGATION 101 CONFERENCE Mealey Publications The Westin Chicago River North, Chicago Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 20-21, 2004 REINSURANCE SUMMIT Mealey Publications The Ritz-Carlton Boston Common, Boston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 20-21, 2004 NATIONAL ASBESTOS LITIGATION CONFERENCE Mealey Publications The Westin Hotel, Philadelphia Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 21, 2004 E-DISCOVERY CONFERENCE Mealey Publications The Westin Hotel, Philadelphia Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 21, 2004 PARALEGALS CONFERENCE Mealey Publications The Westin City Center, Dallas Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 27-28, 2004 BAD FAITH CONFERENCE Mealey Publications The Ritz-Carlton Hotel, Philadelphia Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 27-28, 2004 REINSURANCE ARBITRATIONS American Conferences New York Contact: http://www.americanconference.com September 29-30, 2004 CONSUMER FINANCE CLASS ACTIONS American Conferences New York Contact: http://www.americanconference.com October 4-5, 2004 INSURANCE COVERAGE DISPUTES CONCERNING CONSTRUCTION DEFECTS CONFERENCE Mealey Publications The Westin Chicago River North, Chicago Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com October 7-8, 2004 WELDING ROD LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel, West Palm Beach Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com October 21, 2004 PARALEGALS CONFERENCE Mealey Publications The Westin Peachtree Plaza, Atlanta Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com October 25-26, 2004 SILICA LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel, New Orleans Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com October 26, 2004 PVC LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel, New Orleans Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 4-5, 2004 CK039 CONFERENCE ON LIFE INSURANCE COMPANY PRODUCTS: CURRENT SECURITIES, TAX, ERISA, AND STATE REGULATORY ISSUES ALI-ABA Washington, D.C. Contact: 215-243-1614; 800-CLE-NEWS x1614 November 8, 2004 ALL SUMS: REALLOCATION & SETTLEMENT CREDITS CONFERENCE Mealey Publications The Ritz-Carlton Hotel, Boston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 8, 2004 HRT LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel Huntington Hotel & Spa, Pasadena, CA Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 8-9, 2004 CALIFORNIA SECTION 17200 CONFERENCE Mealey Publications The Ritz-Carlton Hotel Huntington Hotel & Spa, Pasadena, CA Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 9, 2004 ZYPREXA LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel Huntington Hotel & Spa, Pasadena, CA Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 9, 2004 ARTHRITIS DRUG LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel Huntington Hotel & Spa, Pasadena, CA Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 9, 2004 ANTI-SLAPP CONFERENCE Mealey Publications The Ritz-Carlton Hotel Huntington Hotel & Spa, Pasadena, CA Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 11-12, 2004 ASBESTOS LITIGATION IN THE 21ST CENTURY ALI-ABA New Orleans Contact: 215-243-1614; 800-CLE-NEWS x1614 December 2-3, 2004 TRIAL EVIDENCE IN THE FEDERAL COURTS: PROBLEMS AND SOLUTIONS ALI-ABA New York Contact: 215-243-1614; 800-CLE-NEWS x1614 December 9-10, 2004 ASBESTOS PREMISES LIABILITY CONFERENCE Mealey Publications The Ritz-Carlton Hotel Huntington Hotel & Spa, Pasadena, CA Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com December 9-10, 2004 CONSTRUCTION DEFECT & MOLD LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Lake Las Vegas, Las Vegas Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com January 19-21, 2005 CIVIL PRACTICE AND LITIGATION TECHNIQUES IN FEDERAL AND STATE COURTS ALI-ABA San Juan, Puerto Rico Contact: 215-243-1614; 800-CLE-NEWS x1614 March 3-5, 2005 LITIGATING MEDICAL MALPRACTICE CLAIMS ALI-ABA Scottsdale, Arizona Contact: 215-243-1614; 800-CLE-NEWS x1614 March 9-11, 2005 CIVIL PRACTICE AND LITIGATION TECHNIQUES IN FEDERAL AND STATE COURTS ALI-ABA Maui, Hawaii Contact: 215-243-1614; 800-CLE-NEWS x1614 May 12-13, 2005 OPINION AND EXPERT TESTIMONY IN FEDERAL AND STATE COURTS ALI-ABA Boston Tuition Contact: 215-243-1614; 800-CLE-NEWS x1614 May 19-20, 2005 DIGITAL DISCOVERY AND ELECTRONIC EVIDENCE ALI-ABA Chicago Tuition $ Contact: 215-243-1614; 800-CLE-NEWS x1614 TBA FAIR LABOR STANDARDS CONFERENCE Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com TBA AIRLINE BANKRUPTCY LITIGATION CONFERENCE Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com TBA FASTFOOD INDUSTRY LIABILITY CONFERENCE Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com * Online Teleconferences ------------------------ June 05-30, 2004 DAMAGES IN TEXAS INSURANCE LITIGATION: EVALUATING, PLEADING, AND PROVING CLEOnline.Com Contact: 512-778-5665; info@cleonline.com June 05-30, 2004 NBI PRESENTS "EMERGING ISSUES IN CALIFORNIA INDOOR AIR QUALITY AND TOXIC MOLD LITIGATION CLEOnline.Com Contact: 512-778-5665; info@cleonline.com June 05-30, 2004 NBI PRESENTS "LITIGATING THE CLASS ACTION LAWSUIT IN FLORIDA CLEOnline.Com Contact: 512-778-5665; info@cleonline.com ADVERSARIAL PROCEEDINGS IN ASBESTOS BANKRUPTCIES LawCommerce.Com/Mealey's Online Streaming Video Contact: customerservice@lawcommerce.com ASBESTOS BANKRUPTCY - PANEL OF CREDITORS COMMITTEE MEMBERS LawCommerce.Com/Mealey's Online Streaming Video Contact: customerservice@lawcommerce.com EXPERT WITNESS ADMISSIBILITY IN MOLD CASES LawCommerce.Com/Mealey's Online Streaming Video Contact: customerservice@lawcommerce.com INTRODUCTION TO CLASS ACTIONS AND LARGE RECOVERIES Big Class Action Contact: seminars@bigclassaction.com NON-TRADITIONAL DEFENDANTS IN ASBESTOS LITIGATION Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com PAXIL LITIGATION Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com RECENT DEVELOPMENTS INVOLVING BAYCOL Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com RECOVERIES Big Class Action Contact: seminars@bigclassaction.com SELECTION OF MOLD LITIGATION EXPERTS: WHO YOU NEED ON YOUR TEAM Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com SHOULD I FILE A CLASS ACTION? LawCommerce.Com / Law Education Institute Contact: customerservice@lawcommerce.com THE EFFECTS OF ASBESTOS ON THE PULMONARY SYSTEM Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com THE STATE OF ASBESTOS LITIGATION: JUDICIAL PANEL DISCUSSION Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com TRYING AN ASBESTOS CASE LawCommerce.Com Contact: customerservice@lawcommerce.com THE IMPACT OF LORILLAR ON STATE AND LOCAL REGULATION OF TOBACCO SALES AND ADVERSTISING American Bar Association Contact: 800-285-2221; abacle@abanet.org ________________________________________________________________ The Meetings, Conferences and Seminars column appears in the Class Action Reporter each Wednesday. Submissions via e-mail to carconf@beard.com are encouraged. New Securities Fraud Cases GENTA INC.: Scott + Scott Launches Securities Fraud Suit in NJ -------------------------------------------------------------- The law firm of Scott + Scott, LLC initiated a class action in the United States District Court for the District of New Jersey on behalf of the purchasers of Genta Inc. ("Genta") (Nasdaq: GNTA) securities between the period of March 26, 2001 and May 3, 2004. Plaintiffs allege during this period, Genta and certain of its officers and directors were in violation of the United States Federal securities laws (Securities Exchange Act of 1934). Genta is a biopharmaceutical company focused on anticancer therapy. The Complaint charges that the Company misrepresented the potential effectiveness of its development cancer drug, Genasense to artificially inflate the price of Genta stock. More specifically, the Complaint alleges that the Company repeatedly touted positive clinical trial results for Genasense and emphasized that the Food and Drug Administration (FDA) was reviewing the drug for approval on an expedited basis. The complaint alleges that the Company's statements about the efficacy and safety of the drug were without any reasonable basis in fact, such that there was no likelihood of FDA approval. On April 30, 2004, the public and market began to learn the truth about Genasense when Reuters reported that an FDA Advisory Committee had questioned the veracity and reliability of Genta data concerning the effectiveness of Genasense. On May 3, 2004, more detail was revealed about the Company's testing of this drug. In response to this announcement, Genta shares fell from $14.43 to $5.11 in the two trading days from April 30, 2004 to May 3, 2004 on extremely heavy volume. The stock closed on Friday at $2.38. For more details, contact attorney Neil Rothstein of Scott + Scott, LLC by Mail: 108 Norwich Avenue, Colchester, CT 06415 by Phone: 860/537-3818, 1/800-404-7770 (EDT), 1/800-332-2259 (PDT) or 1/619-233-4565 (California Office) by Fax: 860/537- 4432 by E-mail: nrothstein@scott-scott.com or GentaSecuritiesLitigation@scott-scott.com or visit their Web site: http://www.scott-scott.com HANGER ORTHOPEDIC: Lasky & Rifkind Lodges Securities Suit in NY --------------------------------------------------------------- The law firm of Lasky & Rifkind, Ltd. initiated a lawsuit in the United States District Court for the Eastern District of New York, on behalf of persons who purchased or otherwise acquired publicly traded securities of Hanger Orthopedic Group Inc. ("Hanger" or the "Company") (NYSE:HGR) between July 29, 2003 and June 14, 2004, inclusive, (the "Class Period"). The lawsuit was filed against Hanger, Thomas F. Kirk, George E. McHenry and Ivan R. Sable ("Defendants"). 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 in order to maintain the Company's standing and to meet financial expectations, Hanger resorted to an illegal scheme to over bill Medicaid and Medicare programs, the Veterans Administration and private insurers. Unknown to investors, Hanger improperly booked revenues by filling out false prescriptions and adding items that were not prescribed for existing patients in order to inflate bills to Medicaid and Medicare. On June 14, 2004, a news report carried on WNBC television revealed that an employee had phoned the Company's compliance hotline and informed the Company of the purported fraudulent billing practices. On June 15, 2004, Hanger admitted that it had begun an internal investigation into "billing irregularities." Hanger shares dropped dramatically in response to the news, falling 19% over two days to close at $12.75 per share on June 15, 2004. For more details, contact Lasky & Rifkind, Ltd., by Phone: 800-495-1868 by E-Mail: investorrelations@laskyrifkind.com or visit their website: www.laskyrifkind.com HANGER ORTHOPEDIC: Schatz & Nobel Lodges Securities Suit in NY -------------------------------------------------------------- The law firm of Schatz & Nobel, P.C. initiated a lawsuit seeking class action status in the United States District Court for the Eastern District of New York on behalf of all persons who purchased the publicly traded securities of Hanger Orthopedic Group, Inc. (NYSE: HGR) ("Hanger") between July 29, 2003 and June 14, 2004, inclusive (the "Class Period"). Also included are all those who acquired Hanger through its acquisitions of Brace Shop Prosthetic, Rehab Designs, Advance Prosthetic Services, ADL Prosthetic, Advanced Bio-Mechanics, and Northern Virginia Orthotics. The Complaint alleges that Hanger, a provider of orthotic and prosthetic patient-care services, and certain of its officers and directors issued materially false statements concerning the Company's financial condition. Specifically, defendants, who were under tremendous pressure to meet the expectations they themselves had set, engaged in an illegal scheme to bilk the Medicaid and Medicare programs, the Veterans Administration and private insurers. Unbeknownst to investors, Hanger improperly booked sales by filling out fake prescriptions and adding items that were not prescribed for existing patients. This practice not only artificially inflated Hanger's revenues and earnings, it also jeopardized Hanger's status as a Medicare and Medicaid provider, and its relationships with private insurers. On June 14, 2004, after the close of trading, NBC News aired an investigative report in which a Hanger employee described the Company's allegedly fraudulent billing practices. The next day, Hanger issued a news release over the PR Newswire in which it admitted that the Company had initiated an investigation into "billing irregularities." Hanger's shares fell to a closing price of $12.75 on June 15, 2004. For more details, contact Nancy A. Kulesa of Schatz & Nobel by Phone: (800) 797-5499 by E-mail: sn06106@aol.com or visit their Web site: http://www.snlaw.net HANGER ORTHOPEDIC: Wolf Popper Lodges Securities Suit in E.D. NY ---------------------------------------------------------------- The law firm of Wolf Popper LLP initiated a securities fraud lawsuit against Hanger Orthopedic Group, Inc. ("Hanger") (NYSE:HGR) and certain of its officers and directors, on behalf of all persons who purchased Hanger securities on the open market from July 29, 2003 through June 14, 2004. The action was filed in the United States District Court for the Eastern District of New York. The complaint alleges that during the Class Period, defendants materially misrepresented Hanger's financial results and performance in press releases, SEC filings and public statements by improperly recognizing revenue in contravention of generally accepted accounting principles, the Company's revenue recognition policy and numerous federal laws by improperly billing Medicare for orthotic and prosthetic devices. This scheme was perpetrated by the Company by, among other things, forging prescriptions and recording sales for non-existent patients, thereby materially inflating its reported revenues and income. Defendants' misrepresentations were revealed on June 14, 2004 when a news story on WNBC-TV reported on the Company's illegal and fraudulent billing practices. As a result of the news, shares of Hanger plummeted in trading on June 15, 2004, closing at $12.75 per share on heavy trading volume, compared to a closing price of $14.41 the previous day. For more details, contact Renee L. Karalian, Esq. of Wolf Popper LLP by Mail: 845 Third Avenue, New York, NY 10022 by Phone: (212) 451-9621 or (877) 370-7703 by Fax: (212) 486-2093 or (877) 370-7704 by E-mail: irrep@wolfpopper.com or visit their Web site: http://www.wolfpopper.com KEY ENERGY: Federman & Sherwood Files Securities Suit in W.D. TX ---------------------------------------------------------------- The law firm of Federman & Sherwood initiated a class action lawsuit in the Western District of Texas against Key Energy Services, Inc. (NYSE: KEG). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material misrepresentations to the market which had the effect of artificially inflating the market price. The complaint further alleges Key Energy Services, Inc. deceived investors and failed to meet Securities and Exchange Commission deadlines for filing its annual reports because it had yet to complete its review of "certain idle equipment" with a book value of $55 million. The class period is from April 29, 2003 through June 4, 2004. For more details, contact William B. Federman of FEDERMAN & SHERWOOD by Mail: 120 N. Robinson, Suite 2720, Oklahoma City, OK 73102 by Phone: (405) 235-1560 by Fax: (405) 239-2112 by E-mail: wfederman@aol.com or visit their Web site: http://www.federmanlaw.com KEY ENERGY: Lasky & Rifkind Lodges Securities Lawsuit in W.D. TX ---------------------------------------------------------------- The law offices of Lasky & Rifkind, Ltd. initiated a class action lawsuit in the United States District Court for the Western District of Texas, on behalf of persons who purchased or otherwise acquired publicly traded securities of Key Energy Services, Inc. ("Key Energy" or the "Company") (NYSE:KEG) between April 29, 2003 and June 4, 2004, inclusive, (the "Class Period"). The lawsuit was filed against Key Energy, Francis D. John, Richard J. Alario, James J. Byerlotzer and Royce W. Mitchell ("Defendants"). The complaint alleges that Defendants violated the Securities Exchange Act of 1934. The complaint alleges that Defendants failed to disclose that the Company had materially overstated its revenues, net income and earnings per share, that Defendants failed to take $78 million in asset writedowns for idle equipment, that Defendants failed to properly amortize goodwill, and that the Company lacked adequate internal controls and was unable to ascertain its true financial condition. On March 15, 2004, Key Energy announced it had filed notice with the SEC to delay the filing of its Annual Report on Form 10-K. Shortly thereafter the Company announced it would miss the extended filing deadline. Key Energy stated that as a result of a continuing review, it believed that a write-down of $78 million in assets of idle equipment would be required, a significant portion of which should have been recorded in prior periods. As a result the Company expected to restate prior year financial statements. On June 7, 2004, Key Energy announced that it was withdrawing its earnings forecasts and that it had received a notice of default under its 6.375% and 8.375% Senior Notes. Shares of Key Energy reacted negatively to this news, falling $0.95 or 9.88% on June 7, 2004 to $8.67 per share. For more details, contact Lasky & Rifkind, Ltd., by Phone: 800-495-1868 by E-Mail: investorrelations@laskyrifkind.com or visit their website: www.laskyrifkind.com LIQUIDMETAL TECHNOLOGIES: Scott + Scott Files CA Securities Suit ---------------------------------------------------------------- The law firm of Scott + Scott, LLC initiated a securities class action at shareholder request in the United States District Court for the Central District of California on behalf of purchasers of Liquidmetal Technologies, Inc. ("Liquidmetal") (Nasdaq: LQMTE) securities during the period between May 21, 2002 and March 30, 2004 (the "Class Period"), including those who acquired shares pursuant to the Company's May 21, 2002 initial public offering ("IPO"). The complaint alleges Liquidmetal and certain of its officers and directors with violations of the U.S. federal securities laws (Securities Exchange Act of 1934 and the Securities Act of 1933). Liquidmetal is in the business of developing, manufacturing and marketing products made from amorphous alloys. The complaint alleges defendants caused Liquidmetal stock to trade at artificially inflated prices when the Company issued false and misleading financial statements. The true facts, which were known to the company, were that Liquidmetal was recording revenue on "contingent" contracts and such contingencies were unfulfilled. Furthermore, the Company did not have the proper internal controls and oversight to ensure the subsidiary operations complied with applicable regulations. It is also alleged that prior to the IPO, the Company was experiencing adverse trends in the electronic casings business and was actually manufacturing its own revenue by infusing capital in customers in return for the customers' orders. On February 20, 2004, Liquidmetal announced that it was required to restate its financial statements for the third quarter of 2002 to the first quarter of 2003 and reverse reported income attributable to one of its former suppliers of alloy ingots, Growell Metal. Thereafter, on March 30, 2004, Liquidmetal announced it would delay the filing of its 2003 Form 10-K due to the additional time required to complete the previously announced review and analysis relating to the Company's restatement of results for prior periods. On May 13, 2004, the Company filed a Form 8-K reporting that Deloitte & Touche LLP had resigned as the Company's independent auditors, effective May 6, 2004. On May 24, 2004, it was announced that Liquidmetal named Stonefield Josephson as its independent auditing firm. Liquidmetal CEO John Kang stepped down pending an independent audit, aimed at "any outstanding issues related to Kang's personal stock transaction with Growell Metal Co.," the company said. For more details, contact attorney Neil Rothstein of Scott + Scott, LLC by Mail: 108 Norwich Avenue, Colchester, CT 06415 by Phone: 860/537-3818, 1/800-404-7770 (EDT), 1/800-332-2259 (PDT) or 1/619-233-4565 (California Office) by Fax: 860/537- 4432 by E-mail: nrothstein@scott-scott.com or LiquidmetalTechSecurities@scott-scott.com or visit their Web site: http://www.scott-scott.com MERIX CORPORATION: Schatz & Nobel Lodges Securities Suit in OR -------------------------------------------------------------- The law firm of Schatz & Nobel, P.C. initiated a lawsuit seeking class action status in the United States District Court for the District of Oregon on behalf of all persons who purchased the publicly traded securities of Merix Corporation, (Nasdaq: MERX) ("Merix") between July 1, 2003 and May 13, 2004, inclusive (the "Class Period"). The Complaint alleges that Merix, a manufacturer of electronic- interconnect solutions for use in sophisticated electronic equipment, and certain of its officers and directors issued materially false statements concerning the Company's financial condition. Specifically, defendants failed to disclose the following: (1) that Merix over relied, in their financial projections, on the customers' future demand for premium-priced and reduced- lead-time products, which had previously accounted for 50% of the Company sales; (2) that Merix failed to adequately insulate itself from the softening demand, specifically with regard to supply needs of a major networking customer; and (3) that Merix failed to appreciate the market conditions, which did not support the Company's aggressive growth. As a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and their earnings projections. On May 13, 2004, after the close of the market, Merix revised guidance for the fourth quarter of fiscal 2004, ending on May 29, 2004. On this news, shares of Merix fell $4.64 per share or 30.29% to close at $10.68 on May 14, 2004. For more details, contact Nancy A. Kulesa of Schatz & Nobel by Phone: (800) 797-5499 by E-mail: sn06106@aol.com or visit their Web site: http://www.snlaw.net NBTY INC.: Lerach Coughlin Launches Securities Suit in E.D. NY -------------------------------------------------------------- The law firm of Lerach Coughlin Stoia & Robbins LLP commenced a class action lawsuit in the United States District Court for the Eastern District of New York on behalf of purchasers of NBTY, Inc. ("NBTY") (NYSE:NTY) securities during the period between April 22, 2004 and June 16, 2004 (the "Class Period"). The complaint charges NBTY and certain of its officers and directors with violations of the Securities Exchange Act of 1934. NBTY is a vertically integrated manufacturer, marketer and retailer of nutritional supplements in the United States, the United Kingdom, Ireland, the Netherlands and worldwide. The complaint alleges that at the start of the Class Period, defendants announced that the Company had experienced a "record" quarter, in which its financial results exceeded analyst expectations, causing the price of the Company's stock to rise almost 5%. Defendants attributed the increased revenues, in part, to "the Company's ability to more effectively target market its customer base." As part of the same announcement, defendants advised investors that they were confident that the Company would continue to grow its revenue and market share. Unbeknownst to investors, however, the financial results were the result of a shift in the timing of a promotional mailing and were not attributable to any long-term improvement at the Company. As was ultimately disclosed by defendants at the end of the Class Period, the Company's financial results in the third quarter, which did not include this promotional campaign, suffered from a slowdown in sales. Moreover, by at least the start of the Class Period, defendants knew, but failed to disclose, that sales at the Company's Vitamin World stores were declining because customers were increasingly purchasing their vitamins and other health supplements at mass market merchants, such as drugstores and deep discounters, and not at specialty health stores such as Vitamin World. When this information was belatedly disclosed to the market on June 17, 2004, shares of NBTY common stock fell $9.51 per share, or 26%, to close at $26.99 per share, on extremely high trading volume. Prior to the disclosure of this information, certain defendants and other NBTY insiders sold 727,200 shares of their personally held stock at artificially inflated prices for gross proceeds of $26 million. For more details, contact William Lerach or Darren Robbins of Lerach Coughlin Stoia & Robbins LLP by Phone: 800-449-4900 by E- mail: wsl@lcsr.com or visit their Web site: http://www.lcsr.com/cases/nbty/ SHAW GROUP: Lasky & Rifkind Lodges Securities Lawsuit in E.D. LA ---------------------------------------------------------------- The law firm of Lasky & Rifkind, Ltd., initiated a lawsuit in the United States District Court for the Eastern District of Louisiana, on behalf of persons who purchased or otherwise acquired publicly traded securities of The Shaw Group Inc. ("Shaw" or the "Company") (NYSE:SGR) between October 19, 2000 and June 10, 2004, inclusive, (the "Class Period"). The lawsuit was filed against Shaw, Tim Barfield Jr., J.M. Bernhard, Jr., Richard F. Gill and Robert Belk ("Defendants"). 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. The complaint alleges that Defendants publicly disseminated results of Shaw's operations and financial conditions were a misrepresentation because they contained artificially inflated earnings, assets and income. These results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP") and deceived investors as to the company's true financial performance. According to the complaint, Defendants improperly established and drew upon reserve accounts set up from a series of acquisitions, including the acquisitions of Stone & Webster and the IT Group in May 2002. Moreover, the complaint alleges that Defendants prematurely recognized revenues in violation of their own revenue recognition policy as well as GAAP. On June 10, 2004 Shaw announced that it had been notified by the SEC that the SEC was conducting an inquiry that appeared to focus on the Company's accounting for acquisitions. On this news, shares of Shaw fell 12.4% to close at $10.75 per share. For more details, contact Lasky & Rifkind, Ltd., by Phone: 800-495-1868 by E-Mail: investorrelations@laskyrifkind.com or visit their website: www.laskyrifkind.com SHAW GROUP: Lerach Coughlin Lodges Securities Lawsuit in E.D. LA ---------------------------------------------------------------- Lerach Coughlin Stoia & Robbins LLP commenced a class action in the United States District Court for the Eastern District of Louisiana on behalf of purchasers of The Shaw Group, Inc. ("Shaw Group") (NYSE:SGR) publicly traded securities during the period between October 19, 2000 and June 10, 2004 (the "Class Period"). The complaint charges Shaw Group and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Shaw Group is a global provider of services to the power, process and environmental and infrastructure industries. The complaint alleges that defendants made false and misleading statements about Shaw Group's finances, prospects and acquisitions. As a result of defendants' false statements, Shaw Group's stock traded at artificially inflated prices, trading as high as $62.37 in April 2001. Defendants took advantage of this inflation, selling $54.3 million worth of their personal Shaw Group holdings and accomplishing two secondary offerings of Shaw Group stock, raising more than $215 million in net proceeds. On June 14, 2004, it was revealed that the SEC was investigating Shaw Group's accounting for purchases, causing its stock to fall to $10.05 on volume of 4.2 million shares. According to the complaint, the positive statements about Shaw Group's business during the Class Period were false or misleading when issued. The true but concealed facts were: (1) Shaw Group was prematurely recognizing income in violation of Generally Accepted Accounting Principles by releasing acquisition-related contract reserves into earnings, boosting its profit by $200 million over three and a half years; and (2) Shaw Group's business was not performing as well as represented and a significant number of its contracts were not profitable, which it was concealing through accounting manipulations, including improperly accelerating revenue recognition under the percentage- of-completion method of accounting. For more details, contact William Lerach or Darren Robbins of Lerach Coughlin Stoia & Robbins LLP by Phone: 800-449-4900 by E- mail: wsl@lcsr.com or visit their Web site: http://www.lcsr.com/cases/nbty/ SHAW GROUP: Schatz & Nobel Lodges Securities Lawsuit in E.D. LA --------------------------------------------------------------- The law firm of Schatz & Nobel, P.C. initiated a lawsuit seeking class action status in the United States District Court for the Eastern District of Louisiana on behalf of all persons who purchased the publicly traded securities of The Shaw Group, Inc. (NYSE: SGR) ("Shaw") between October 19, 2000 and June 10, 2004, inclusive (the "Class Period"). Also included are all those who acquired Shaw through its acquisitions of Badger Technologies, The IT Group, Stone & Webster, or Energy Delivery Services and all those who purchased shares in the secondary offering on October 23, 2003. The Complaint alleges that Shaw, a provider of complete piping systems and comprehensive engineering procurement and construction services, and certain of its officers and directors issued materially false statements concerning Shaw's financial condition. Specifically, defendants inflated Shaw's reported revenues and earnings by improperly establishing and drawing on reserve accounts established in connection with a series of large acquisitions, including the acquisitions of Stone & Webster and The IT Group. Additionally, defendants prematurely recognized revenue in violation of Shaw's own purported policies and Generally Accepted Accounting Principles, and failed to disclose the extent to which Shaw was vulnerable to changes in power generation market conditions. On June 10, 2004, Shaw announced that the SEC was conducting an inquiry focused on Shaw's accounting for acquisitions. On this news, Shaw stock, which had traded as high as $62.37, fell 12.4% to a closing price of $10.75 on June 14, 2004. During the class period, Company insiders sold shares of Shaw for proceeds in excess of $80 million. Additionally, during the Class Period, Shaw sold $490 million convertible zero coupon, liquid yield option notes. For more details, contact Nancy A. Kulesa of Schatz & Nobel by Phone: (800) 797-5499 by E-mail: sn06106@aol.com or visit their Web site: http://www.snlaw.net SYNOVIS LIFE: Schatz & Nobel Lodges Securities Fraud Suit in MN --------------------------------------------------------------- The law firm of Schatz & Nobel, P.C., initiated a lawsuit seeking class action status in the United States District Court for the District of Minnesota on behalf of all persons who purchased the publicly traded securities of Synovis Life Technologies, (Nasdaq: SYNO) ("Synovis") between October 16, 2003 and May 18, 2004, inclusive (the "Class Period"). The Complaint alleges that Synovis and certain of its officers and directors issued materially false statements concerning the Company's financial condition. Specifically, defendants failed to disclose that: (1) that Synovis' surgical business and interventional business were experiencing serious problems, as Synovis effectively failed to adequately adapt its business model to the reality of the highly competitive contract manufacturing business; (2) that the performance of Synovis' surgical business lagged because of disappointing sales of Synovis' flagship Peri-Strips product, due to reimbursement pressures, lack of trained gastric bypass surgeons, and a new competing product from Gore Medical; and (3) that the performance of the Company's interventional business suffered as Synovis' largest customers did not place the orders due to continued inventory build-up. As a result of the foregoing, the defendants' fiscal 2004 projections were lacking in any reasonable basis when made. On May 19, 2004, Synovis issued a press release which drastically cut its guidance for fiscal 2004 stating that it had, fallen behind its own expectations and had clearly not met the expectations of the market. On this news, Synovis plummeted 36% per share to close at $9.25, on May 19, 2004. For more details, contact Nancy A. Kulesa of Schatz & Nobel by Phone: (800) 797-5499 by E-mail: sn06106@aol.com or visit their Web site: http://www.snlaw.net VICURON PHARMACEUTICALS: Lasky & Rifkind Lodges PA Stock Suit ------------------------------------------------------------- The law firm of Lasky & Rifkind, Ltd., initiated a lawsuit in the United States District Court for the Eastern District of Pennsylvania, on behalf of persons who purchased or otherwise acquired publicly traded securities of Vicuron Pharmaceuticals Inc. ("Vicuron" or the "Company") (NASDAQ:MICU) between January 6, 2003 and, inclusive, (the "Class Period"). The lawsuit was filed against Vicuron, George F. Horner, III, Dov A. Goldstein and Timothy J. Henkel ("Defendants"). The complaint alleges that Defendants violated the Securities Exchange Act of 1934. The complaint alleges that Defendants artificially inflated the price of Vicuron stock by concealing negative information with respect to the safety and efficacy of Anidulafungin, Vicuron's intravenous treatment of fungal infections. The complaint alleges that Defendants concealed key adverse information pertaining to the development and commercialization of Anidulafungin. On May 24, 2004, a partial disclosure of the contents of a letter from the FDA detailed the failure of Vicuron to supply data necessary to support its claims that the drug could be used to treat esophageal candidasis. In reaction to this disclosure, Vicuron shares plummeted $8.86 per share to $13.04, representing a decline of over 40%. For more details, contact Lasky & Rifkind, Ltd., by Phone: 800-495-1868 by E-Mail: investorrelations@laskyrifkind.com or visit their website: www.laskyrifkind.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. ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Glenn Ruel Se�orin, Aurora Fatima Antonio and Lyndsey Resnick, Editors. Copyright 2004. All rights reserved. ISSN 1525-2272. 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