/raid1/www/Hosts/bankrupt/CAR_Public/050223.mbx
C L A S S A C T I O N R E P O R T E R
Wednesday, February 23, 2005, Vol. 7, No. 38
Headlines
5 STAR: Reaches Price-Gouging Suit Settlement With FL A.G. Crist
ALCOA INC.: VI Court Orders Mediation in Personal Injury Lawsuit
ALCOA INC.: Stamps City Given One Year To Re-file Injury Claims
ALLIED WASTE: AZ Court Orders Securities Lawsuits Consolidated
AO SMITH: Final Settlement Forged, Product Defect Suit Dismissed
ARKANSAS: $750,000 Share in Vitamin Settlement Given To Groups
BARGAIN MAIL: KY A.G. Stumbo Launches Consumer Fraud Lawsuit
BREAN MURRAY: Settles Charges Related To Late Trading Of Funds
CALIFORNIA: A.G. Lockyer Launches $110M Consumer Fraud Lawsuit
CANADA: Judge Allows Quebec Suit V. Tobacco Companies To Proceed
CERIDIAN CORPORATION: Plaintiffs Launch Consolidated Suit in MN
COLORADO: Television Complaints Top List of Consumer Complaints
FAX.COM: KY A.G. Stumbo Obtains Judgment For Unsolicited Faxes
FLORIDA: Resident Lodges Suit Claiming Dextromethorphan Useless
GANO EXCEL: Recalls Products Because of Undeclared Milk Content
GENERAL ELECTRIC: Recalls 74.3T Dishwashers Due To Fire Hazard
GENERAL MOTORS: Resident Files Suit Over Faulty Parking Brakes
GREAT KINGSLAND: Recalls Food Products For Undeclared Sulfites
ILLINOIS: Attorneys Rush To File Suits in Madison County Court
ILLINOIS: A.G. Madigan Files Suit V. Woman Posing as Attorney
ILLINOIS: Fan Lodges Lawsuit Over "Remastered" Osbourne Albums
ILLINOIS: A.G. Madigan Launches Consumer Suit V. NV, CA Firms
IMPERIAL TOBACCO: Expresses Disappointment Over Quebec Ruling
MARCHFIRST: Securities Suit Settlement Hearing Set April 6, 2005
NVIDIA CORPORATION: SEC Obtains Judgment V. Robert J. Prevett
NY FISH: Recalls Salt Cured Herring For Botulinum Contamination
PLUG POWER: Securities Suit Settlement Hearing Set April 29,2005
POWEREX: A.G. Lockyer Launches Energy Price-Gouging Suit
RADIATION THERAPY: Plaintiff Dismisses FL Securities Fraud Suit
SALTON INC.: Recalls 2,700 Cordless Kettles For Lead Leaching
SCOTTSDALE SUZUKI: AZ A.G. Goddard Alleges TV Ads Are Fraudulent
SOUTH KOREA: Class Action Law Revision Allows "Grace Period"
SPEAR & JACKSON: Shareholders Lodge Stock Fraud Suits in S.D. FL
TARGET CORPORATION: Recalls 135T "ENA" Boots Due To Injury Risk
UNITED STATES: S.5 Could Precipitate Consolidation Of Law Firms
VALENTINE KANSAS: Settles KS A.G. Kline's Consumer Fraud Suit
VALUEPOINT PARTNERS: Suit Settlement Hearing Set February 2005
WORLD WIDE: IL A.G. Madigan Launches Illegal Advertising Lawsuit
XCEL ENERGY: ERISA Settlement Hearing Scheduled April 1
XCEL ENERGY: Securities Suit Settlement Hearing Set April 1,2005
ZUCHORA CONSTRUCTION: Faces FL Attorney General's Fraud Suit
Meetings, Conferences & Seminars
* Scheduled Events for Class Action Professionals
* Online Teleconferences
New Securities Fraud Cases
OFFICEMAX INC.: Glancy Binkow Lodges Securities Fraud Suit in IL
VEECO INSTRUMENTS: Brian M. Felgoise Files Securities Suit in NY
VEECO INSTRUMENTS: Marc S. Henzel Lodges Securities Suit in NY
*********
5 STAR: Reaches Price-Gouging Suit Settlement With FL A.G. Crist
----------------------------------------------------------------
Florida Attorney General Charlie Crist reached a settlement
agreement with 5 Star Investments, Inc., a motel that was the
subject of hurricane-related price-gouging complaints. Under
the Assurance of Voluntary Compliance, the Vero Beach motel will
pay $75,000 for victim restitution and legal fees, the highest
settlement of a motel price gouging case following last year's
record-breaking hurricane season.
The Attorney General's Office received initial complaints of
price gouging from consumers who contacted the office's price
gouging hotline, and additional complaint information was
received after the Attorney General's Economic Crimes Unit
launched an investigation into the allegations. The motel, a
Best Western franchise, is located at 8797 20th Street in Vero
Beach. Investigators found that during the six-week period
following Hurricane Frances, the average daily rate for rooms at
the motel increased approximately 41 percent from a rate
calculated during the 30-day period preceding the storm. Under
Florida's price gouging law, this increase constitutes a "gross
disparity" between the two rates, subjecting the motel to price
gouging action.
"This settlement means that consumers can receive every penny
owed to them due to improperly inflated prices," said Crist.
"Our aggressive pursuit of price gouging complaints was also
designed to send a message to those seeking to take advantage of
our citizens: You had better think twice. That message seemed to
be received after several lawsuits were filed."
Victims may file a claim with the Attorney General's Office
within 60 days. Most of the restitution payment will be placed
in an escrow account for victims' claims. After the 60-day
period has elapsed, any remaining funds will be equally
distributed between the Florida Hurricane Relief Fund and the
Attorney General's Office for legal costs.
The action marks the fourth settlement of hurricane-related
price gouging actions. Previously, hotels in West Palm Beach,
Naples and Ocala agreed to reimburse guests and repay taxpayers
for the costs of enforcing the price gouging statutes. A copy
of the settlement agreement may be viewed at:
http://www.myfloridalegal.com/5_Star_AVC.pdf.
ALCOA INC.: VI Court Orders Mediation in Personal Injury Lawsuit
----------------------------------------------------------------
The District Court of the Virgin Islands ordered mediation in a
civil suit filed against Alcoa, Inc. in the Territorial Court of
the Virgin Islands by certain residents of St. Croix. The suit
seeks compensatory and punitive damages and injunctive relief
for alleged personal injuries and property damages associated
with "bauxite or red dust" from the St. Croix Alumina facility.
The suit names St. Croix Alumina LLC, Alcoa Inc. and Glencore
Ltd. (a former owner of the facility) as defendants and in
August 2000 was accorded class action treatment. The class is
defined to include persons in various defined neighborhoods who
"suffered damages and/or injuries as a result of exposure during
and after Hurricane Georges to red dust and red mud blown during
Hurricane Georges." All of the defendants have denied
liability, and discovery and other pretrial proceedings have
been underway since 1999.
In October 2003, the defendants received plaintiffs' expert
reports. These reports claim that the material blown during
Hurricane Georges consisted of bauxite and red mud, and
contained crystalline silica, chromium and other substances. The
reports go on to claim, among other things, that the population
of the six subject neighborhoods as of the 2000 census (a total
of 3,730 people) has been exposed to toxic substances through
the fault of the defendants, and hence will be able to show
entitlement to lifetime medical monitoring as well as other
compensatory and punitive relief. These opinions are in the
process of being contested by the defendants.
The suit is styled St. Croix Renaissance Group v. St. Croix
Alumina,LLC, case no. 04-CV-0067-F. Plaintiffs St. Croix
Renaissance Group, Brownfield Recovery Corporation and Energy
Answers Corporation are represented by Joel H. Holt, 2132
COMPANY STREET, CHRISTIANSTED, VI 00820, Phone: (340) 773-8709,
Fax: (340) 773-8677. Defendants are represented by Simone R.D.
Francis, OGLRETREE DEAKINS NASH SMOAK LLC, TUNICK BUILDING,
SUITE 202 1336 BELTJEN ROAD, ST. THOMAS, VI 00802, Phone:
(340) 714-1235, Fax: (340) 714-1245
ALCOA INC.: Stamps City Given One Year To Re-file Injury Claims
---------------------------------------------------------------
The City of Stamps, Arkansas has one year to re-file the its
claims in the two companion lawsuits initially filed in 2001 and
2002 against Alcoa, Inc. and other mining companies.
The suits were initially filed in the Court of Lafayette County,
Arkansas on behalf of nearly 400 current or former residents of
the City of Stamps, Arkansas, the City of Stamps and former
employees of Red River Aluminum, Inc. (RRA), a dross processor.
The 2001 action has been transferred to Miller County, Arkansas.
The suits name 12 defendants (including Alumax, Reynolds and
Alcoa) that sent dross to RRA for processing. Plaintiffs have
filed claims for personal injuries and property damage and have
alleged that the defendants violated Arkansas environmental
statutes relating to the alleged contamination associated with
RRA's operations in Stamps.
The 2001 action was settled in May 2004. The cost of the
settlement was previously reserved for and was not material to
Alcoa. The 2002 action was dismissed, without prejudice, at the
requests of plaintiffs in June 2004. In June 2004, the City of
Stamps withdrew its claims, without prejudice. It now has one
year in which to re-file its claims. Should the City of Stamps
re-file, any result of that suit is at this time neither
estimable nor probable.
ALLIED WASTE: AZ Court Orders Securities Lawsuits Consolidated
--------------------------------------------------------------
The United States District Court of Arizona ordered consolidated
the three securities class action filed against Allied Waste
Industries, Inc. and four of its current and former officers.
The complaints asserted claims against all defendants under
Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 promulgated thereunder and claims against the officers
under Section 20(a) of the Securities Exchange Act. The
complaints allege that from February 10, 2004, to July 27, 2004,
the defendants caused false and misleading statements to be
issued in our public filings and public statements regarding the
Company's anticipated second quarter 2004 results. The lawsuits
seek an unspecified amount of damages.
AO SMITH: Final Settlement Forged, Product Defect Suit Dismissed
----------------------------------------------------------------
A.O. Smith Corporation and other water heater manufacturers have
reached a final settlement for the class action filed against
them in the United States District Court, Western
District of Missouri, by individuals on behalf of themselves and
all persons throughout the United States who have owned or
currently own a water heater manufactured by the defendants.
The suit also names as defendants:
(1) Rheem Manufacturing Company,
(2) Bradford White Company,
(3) American Water Heater Company,
(4) Lochinvar Corporation, and
(5) State Industries, Inc.
The suit relates to water heaters that that contain a dip tube
manufactured, designed, supplied or sold by Perfection
Corporation between August 1993 and October 1996. A dip tube is
a plastic tube in a residential water heater that brings the
cold water supply to the bottom area of the tank to be heated.
The plaintiffs and the water heater manufacturers reached a
settlement of this lawsuit, which the Court approved in 2000.
The water heater manufacturers paid the settlement, and all
other legal actions brought against the water heater
manufacturers related to dip tube claims have been dismissed as
a result of the settlement of the class action.
ARKANSAS: $750,000 Share in Vitamin Settlement Given To Groups
--------------------------------------------------------------
As a result of a class-action lawsuit settlement, $750,000 will
be given to organizations that help feed the hungry and improve
the nutritional health of Arkansans, Arkansas Attorney General
Mike Beebe announced in a statement.
The McMath Law Firm brought the class-action suit against
vitamin manufacturers alleging an illegal price-fixing
conspiracy regarding vitamin additives in food products. The
lawsuit affected all Arkansans, and therefore settlement funds
could not be distributed to individual Arkansans. Instead, the
McMath Firm contacted the Attorney General's Office for
assistance in determining statewide programs that would use the
money in their work to improve the health and nutrition of
Arkansans statewide.
$350,000 will go to the Meals On Wheels Association of America.
Through contracted agencies in all 75 Arkansas counties, Meals
On Wheels feeds nutritious, hot-or-frozen food to elderly,
homebound people who cannot shop or prepare their own meals.
An additional $350,000 will go to the Arkansas Hunger Relief
Alliance (ARHA). In 2004, ARHA provided 13.6 million pounds of
food to nearly 1,000 emergency food pantries, homeless shelters,
soup kitchens and other organizations that work to reduce hunger
in our state. Members of ARHA include:
(1) Arkansas Foodbank Network in Little Rock, Arkadelphia
and Warren
(2) Northeast Arkansas Foodbank in Jonesboro
(3) North Central Arkansas Foodbank in Norfork
(4) Ozark Foodbank in Bethel Heights
(5) Northwest Arkansas Foodbank in Fort Smith
(6) Harvest Texarkana
Finally, $50,000 will go to the UAMS Champions Club of Arkansas.
The program helps overweight children and their families make
permanent, healthy lifestyle changes to manage weight and
improve overall health. Based in Little Rock, the program is
expanding to sites in Magnolia, Mountain Home, Jonesboro and
Arkadelphia.
"I'm pleased that my office was able to help distribute this
money to agencies that will help thousands of Arkansans, both
young and old," AG Beebe said. " I applaud the efforts of the
McMath Law Firm in this class-action case, and am confident
these funds will be put to good use to assist those who need a
helping hand."
BARGAIN MAIL: KY A.G. Stumbo Launches Consumer Fraud Lawsuit
------------------------------------------------------------
Kentucky Attorney General Greg Stumbo filed a consumer
protection lawsuit against William Davis on January 31, 2005 in
a consumer protection lawsuit in connection with an online
retail goods company he operated. Mr. Davis, doing business as
Bargain Mail Order (BMO), sold motor scooters and other
merchandise.
The Complaint alleges that the Company failed to deliver
merchandise to some customers, advertised a 30-day warranty
which the company refused to honor and failed to repair
merchandise or refund money when appropriate. Each of the counts
alleged in the suit are asserted to be violations of Kentucky's
Consumer Protection Act. The Attorney General seeks restitution
on behalf of consumers, civil penalties of $2,000 per violation
and injunctive relief to prohibit the pattern and practice of
activities the Attorney General has alleged to be in violation
of the Act.
"The defendants operate an online website that primarily sells
motor scooters," Attorney General Stumbo said. "The website
advertises a 30 day guarantee on products sold, stating that the
company `will stand behind its products 100%.' In truth, the
defendants refuse to honor the warranty and have misled and
deceived consumers as a result."
Consumers from several states have also filed complaints against
BMO seeking the repair of purchased merchandise and refunds. The
defendants have refused to satisfy the complaints of these
consumers. Consequently, given the deceptive practices employed
by this company in trade and commerce, the Attorney General felt
compelled to act in the public interest. "When more than 100
consumer complaints go unresolved by a business, there is a
strong implication that the problems go beyond a mere lack of
customer service, but may be sign of unfair business practices
that violate the law," the Attorney General added.
Bargain Mail Order is operated from a location at 3266
Ruckriegel Parkway in Louisville, Kentucky.
For more information, please contact the Office of the Attorney
General, State Capitol, Suite 118, Frankfort, Kentucky 40601,
Phone: (502) 696-5300
BREAN MURRAY: Settles Charges Related To Late Trading Of Funds
--------------------------------------------------------------
The Securities and Exchange Commission issued an Order
Instituting Administrative and Cease-and-Desist Proceedings,
Making Findings, and Imposing Remedial Sanctions and a Cease-
and-Desist Order Pursuant to Section 15(b) of the Securities
Exchange Act of 1934 and Section 9(f) of the Investment Company
Act of 1940 (Order) against Brean Murray & Co., Inc. (Brean
Murray or the firm). Brean Murray, located in New York City, has
been registered with the Commission as a broker-dealer since
1973. Brean Murray consented to the issuance of the Order
without admitting or denying any of the findings.
The Order finds that until his death in December 2003, Anthony
Brean Murray, who established the firm, was the Chairman,
President and Chief Executive Officer of Brean Murray. From
August 2001 through September 2003, Brean Murray, on behalf of
Canary Capital Partners LLC (Canary) and at least four other
hedge fund customers, accepted and executed more than 3,500
trades in dozens of mutual funds after 4:00 p.m. Eastern Time,
the time as of which those funds calculated their respective Net
Asset Value (NAV). Brean Murray received and executed through
its clearing broker the overwhelming majority of these trades
after 5:00 p.m. This practice, also known as "late trading,"
violated Rule 22c-1 under the Investment Company Act.
The Order also finds that in August 2001, at the request of
Canary, Brean Murray began entering mutual fund trades directly
into its clearing broker's platform as late as 5:45 p.m., but
almost always after 4:00 p.m. ET. Shortly thereafter Brean
Murray started entering late trades on behalf of its other hedge
fund customers.
Based on the above, the Commission censured Brean Murray, and
ordered Brean Murray to cease and desist from committing or
causing any violations and any future violations of Rule 22c-1
under the Investment Company Act, to pay a civil penalty in the
amount of $150,000, and to comply with certain specified
undertakings.
CALIFORNIA: A.G. Lockyer Launches $110M Consumer Fraud Lawsuit
--------------------------------------------------------------
Attorney General Bill Lockyer and Insurance Commissioner John
Garamendi have filed a $110 million-plus lawsuit against a
living trust mill that tricked senior citizens into using their
retirement investments to buy annuities that often made less
financial sense for the elderly victims but earned the con
artists substantial commissions and other income.
"The perpetrators of this fraud deceived seniors into using
their hard-earned retirement nest eggs to buy unneeded annuities
that actually undermined their financial security," said
Attorney General Lockyer. "Living trust mills such as this one
violate not only the law, but the trust of their elderly
victims. My office will move aggressively to stop these scam
operations which prey on vulnerable consumers."
The lawsuit, filed in Los Angeles County Superior Court, targets
the following defendants who conspired to run the living trust
mill/annuity scam:
(1) Family First Advanced Estate Planning and Family First
Insurance Services of Woodland Hills;
(2) Nick A. Michaels, president of Family First Advanced
Estate Planning;
(3) John Owen, president of Family First Insurance
Services;
(4) American Investors Life Insurance of Kansas;
(5) Group Legal Services of San Diego;
(6) Senior Law Practice Group; and
(7) attorney Thomas R. Lee of Woodland Hills
The complaint seeks more than $40 million in civil penalties,
and a combined total of at least $70 million in consumer
restitution and damages. Additionally, the complaint asks the
court to permanently prohibit the defendants from engaging in
the alleged unlawful business practices.
The defendants' deceptive practices violated 18 separate
provisions of the Business and Professions Code, Insurance Code,
Civil Code and Corporate Securities Law, including several
statutes designed specifically to protect seniors, the complaint
alleges. The violations included unauthorized practice of law
and obtaining business for an attorney by "running and capping,"
according to the complaint.
Family First employed between 250 and 300 sales agents, and
another 80 telemarketers who operated out of a call center in
Corona, California. Aside from its Woodland Hills headquarters,
Family First operated regional offices in Sacramento, Fremont,
Concord, Santa Ana, Irvine, Canoga Park, Rancho Santa Margarita,
Santa Maria, Westlake Village, Pleasanton and Bakersfield. The
defendants deceptively sold tens of thousands of living trusts
and related services, and annuities worth hundreds of millions
of dollars, according to the complaint.
"Defendants use the pretext of the offer and sales of ... estate
planning products and services to establish confidential
relationships with the consumers and find out about the
consumers' assets," the complaint alleges. "Defendants then
exploit those confidential relationships and use the financial
information they obtain to induce those consumers to purchase
annuities. Defendants make untrue or misleading statements
about, and do not fully disclose the significant disadvantages
of, the annuities they offer." Specifically, the complaint
alleges the Family First scheme worked like this:
Through telemarketers, mailers, seminars, presentations at
senior centers and other means, the defendants solicited elderly
consumers, offering to come to their homes to provide free
consultations about establishing or revising living trusts. They
pitched their services as a way to avoid probate and reduce
estate taxes.
Family First then sent sales representatives to victims' homes.
Even though the representatives were not lawyers, they provided
legal advice on estate planning. The representatives negotiated
living trust transactions with consumers and executed sales
contracts. To lend an air of legitimacy, they instructed victims
to make checks payable to Group Legal Services, which kept some
for itself, forwarded a set fee to Lee, and remitted the balance
to Family First.
The sales representatives used these home visits to obtain
personal financial information about the victims, including
information about their assets. That information was used to
facilitate the subsequent sale of annuities. At no time during
the initial solicitation or the home visits did the defendants
adequately disclose to the victims that their ultimate aim was
to sell annuities.
Mr. Lee's employees prepared the living trust documents and sent
them to Family First. Family First then deployed sales
representatives, who were life insurance agents for American
Investors, back into victims' homes. That's when victims were
hit with the annuity sales pitch. The representatives told
victims they should move a substantial portion of their assets
to the annuities sold by the representatives. They advised
victims to sell their securities and buy annuities without
obtaining the required authorization from the Department of
Corporations.
The sales representatives never fully informed the victims about
the disadvantages of annuities, especially for elderly
consumers. Those drawbacks include the fact that, during the
time it takes for the annuity to mature (sometimes 15 years),
consumers cannot withdraw more than specified amounts without
incurring substantial financial penalties. That restriction
could pose major problems for seniors facing health or other
emergencies.
The lawsuit is the second brought by the Attorney General's
Office against a living trust mill. Two years ago, a state
appeals court affirmed a multi-million dollar judgment against
Fremont Life Insurance Company, which conspired with a living
trust mill called Alliance for Mature Americans.
Consumers who feel they have been victimized by the Family First
defendants, or by another living trust mill or annuity fraud,
should report it to their local district attorney or the
Department of Insurance. They also may file a complaint online
at the Attorney General's web site,
http://www.ag.ca.gov/consumers/mailform.htm. The complaint can
be accessed through the Website:
http://www.ag.ca.gov/newsalerts/2005/05-012.pdf
CANADA: Judge Allows Quebec Suit V. Tobacco Companies To Proceed
----------------------------------------------------------------
Quebec Superior Court Justice Pierre Jasmin allowed a smoker to
proceed with separate class-action lawsuits against Imperial
Tobacco, Rothmans, Benson & Hedges and JTI-MacDonald, all of
whom could be liable for damages, the Canadian Press reports.
Jean-Yves Blais began smoking when he was 10 and lost part of
his right lung to cancer in 1997. Cecilia Letourneau, who says
she has been addicted to nicotine since she began smoking in
1964 as a 19-year-old were given the go-ahead by to launch
separate. Ms. Letourneau began proceedings in 2001, seeking
$5,000 each for an estimated two million Quebec smokers addicted
to nicotine; while Mr. Blais, a 60-year-old taxi-driver from
Longueuil, Quebec, is trying to win up to $100,000 for each of
the estimated 40,000 to 45,000 Quebecers who have suffered
emphysema or cancer of the lungs, larynx or throat between 1995
and 1998.
Though no date has been set for a judge to hear the suits, legal
experts point out that they're expected to take years to wind
their way through the courts, the Canadian Press states.
Yves-Thomas Dorval, a spokesman for Imperial Tobacco told the
Canadian Press the suits would tie up the courts because of the
difficulty in sorting out specific health problems suffered by
each alleged victim. "That means the court and the procedures
will be stuck with so many details, so complex," he said in an
interview. "Our opinion was that these cases should be dealt
with individually instead of in a class action," he further
adds.
The judge, while stopping short of supporting the plaintiffs'
claims, affirmed in his ruling that cigarettes are inherently
dangerous despite past claims to the contrary by manufacturers.
In his 40-page ruling, he wrote, "What sensible person, smoker
or non-smoker, could claim today that cigarettes have any
usefulness whatsoever. On the contrary - cigarettes are not only
useless, but they are dangerous and cause serious health
problems."
The judge said Quebecers who suffer from the types of cancer
outlined in the Blais suit can join the class-action, as long as
they have smoked at least 15 cigarettes a day for five years. In
addition, the judge said, the heirs of smokers who have died may
also be eligible for damages in the suit.
The two class-action suits touch on different health effects of
tobacco. The Blais case, filed in conjunction with the Quebec
Council on Tobacco and Health, centers on the cancers and other
diseases linked to tobacco. The suit alleges the tobacco
companies knew as far back as the 1950s that cigarettes could
cause cancer but denied the link until the 1990s.
Meanwhile, in Ms. Letourneau's case, she is suing because of the
addictive nicotine in cigarettes that she says prevents her from
quitting. Her suit says that the tobacco companies genetically
modified tobacco plants to produce higher nicotine levels. Also,
the suit alleges the companies halted research on ways to
develop safer cigarettes.
Rob Cunningham, a lawyer for the Canadian Cancer Society, hailed
the judge's decision by saying, "It is a significant victory,
even at this stage, against the tobacco companies," he said in a
telephone interview from Ottawa. Ultimately, there may be
damages in the billions of dollars," the Canadian Press reports.
Approval of the two Quebec suits follows a B.C. Supreme Court
decision earlier this month to certify a class action suit
against Imperial Tobacco over its marketing of cigarettes
labelled "mild" or "light."
CERIDIAN CORPORATION: Plaintiffs Launch Consolidated Suit in MN
---------------------------------------------------------------
Ceridian Corporation and certain of its executive officers face
a consolidated securities class action filed in the United
States District Court, District of Minnesota. Six suits were
initially filed, styled:
(1) Edmund Biancarelli v. Ceridian Corp., et al.,
(2) Garco Investments v. Ceridian Corp., et al.,
(3) Ellen Lear v. Ceridian Corp., et al.,
(4) Bruce Valentine Mickan v. Ceridian Corp., et al.,
(5) Richard Shaller v. Ceridian Corp., et al.,
(6) Sharon Zaks v. Ceridian Corp., et al.
The complaints for these actions are virtually identical. These
actions purport to be class actions filed on behalf of all
persons who purchased or otherwise acquired common stock of the
company between April 17, 2003 through and including July 19,
2004, and allege claims against the company and certain of its
officers under Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934. Plaintiffs challenge the accuracy of
certain public disclosures made by Ceridian regarding its
financial performance, and in particular Ceridian's accounting
for revenue at its Stored Value Systems business unit and
accounting for capitalization and expensing of certain costs in
Ceridian's U.S. Human Resource Solutions business.
The suit is styled In Re: Ceridian Corp Securities Litigation,
et al v. et al, case no. 0:97-cv-02044-MJD-JGL," filed in the
United States District Court in Minnesota under Judge Michael J.
Davis.
Representing the Company are:
(1) Craig W. Gagnon, Michael E. Keyes, Oppenheimer Wolff &
Donnelly LLP, 3300 Plz VII Bldg, 45 S 7th St Ste 3300,
Mpls, MN 55402, Phone: (612) 607-7000, Fax: 612-607-
7100, E-mail: cgagnon@oppenheimer.com or
mkeyes@oppenheimer.com
(2) Gregory Paul Joseph, Joseph Law Office, 805 3rd Ave
31st Fl, New York, NY 10022, Phone: 212-407-1200, Fax:
1-212-407-1280 (fax), E-mail: gjoseph@josephnyc.com
(3) Amy J. Longo, O'Melveny & Myers, 610 Newport Center Dt
17th Fl, Newport Beach, CA 92660, Phone: 949-760-9600,
Fax: 1-949-823-6994
(4) Ann Curme Shaw, Ceridian Corp, 3311 E Old Shakopee Rd
Mpls, MN 55425, Phone: 952-853-4210, Fax: 952-853-3413,
E-mail: ann.c.shaw@ceridian.com
The plaintiff firms in this litigation are:
(1) Chestnut & Cambronne, P.A., 3700 Piper Jaffray Tower,
222 South Ninth Street, Minneapolis, MN, 55402, Phone:
612.339.730,
(2) Lockridge, Grindal, Nauen P.L.L.P., Suite 301, 660
Pennsylvania Avenue Southeast, Washington, DC, 20003-
4335, Phone: 202.544.9840, Fax: 202.544.9850,
(3) Milberg, Weiss, Bershad, Hynes & Lerach, LLP (S.F.,
CA), 100 Pine Street - Suite 2600, San Francisco, CA,
94111, Phone: 415.288.4545, Fax: 415.288.4534,
(4) Milberg, Weiss, Bershad, Hynes & Lerach LLP (San Diego,
CA), 600 West Broadway, 1800 One America Plaza, San
Diego, CA, 92101, Phone: 800.449.4900, E-mail:
support@milberg.com
(5) Savett Frutkin Podell & Ryan, P.C., Philadelphia, PA,
Phone: 800.993.3233, E-mail: sfprpc@op.net
COLORADO: Television Complaints Top List of Consumer Complaints
---------------------------------------------------------------
As part of National Consumer Protection Week, Colorado Attorney
General John W. Suthers announced his 2004 Colorado Top Ten
Consumer Complaint List. The Top Ten List is comprised of
information gathered through a number of sources, including the
Colorado Consumer Line. The Colorado Consumer Line
(1-800-222-4444) is a statewide partnership between the Attorney
General's Office, the Better Business Bureaus serving Colorado,
and AARP ElderWatch to better help Coloradans resolve the
thousands of consumer complaints filed annually and to improve
consumer services.
This year's Top Ten List includes the following most complained
about industries:
(1) Television (Cable & Satellite)
(2) Telephone Communications
(3) Collection Agencies
(4) Automobile Sales (New and Used)
(5) Consumer Credit/Lending
(6) Doll Shops (My Twin Doll)
(7) Moving/Storage Companies
(8) Mortgage and Escrow Companies
(9) Internet Shopping Services
(10) Auto Repair Facilities
This list does not include No-Call complaints. Consumer
Credit/Lending complaints moved from number 10 in 2003 to number
five for 2004. Approximately half of these complaints involved
questions or concerns about mortgage lending. The increase in
volume may be due to increased public awareness of Colorado's
anti-predatory lending law, the Colorado Consumer Equity
Protection Act, which took effect on January 1, 2004. Since
then, the Attorney General has had jurisdiction to review
complaints to determine if a mortgage loan was subject to that
law's limitations on negative amortization, balloon payments,
prepayment penalties, and certain other loan terms.
In its regulation of collection agencies and debt collectors,
the Attorney General's Office issued 52 cease and desist letters
to unlicensed collection agencies, issued 7 letters of
admonition, and imposed a total of $19,500 in administrative
fines on 15 collection agencies.
The Colorado Consumer Line and the BBB's closed more than 15,609
consumer complaints in 2004. Consumers requested more than
870,000 Better Business Bureau reliability reports over the
telephone or through the Bureaus' websites. The Colorado
Consumer Line received more than 61,011 calls in 2004. The
Better Business Bureaus participating in the Colorado Consumer
Line are the Denver/Boulder BBB; Four Corners/Western Slope BBB
in Farmington, New Mexico; Mountain States BBB in Fort Collins;
and the Southern Colorado BBB in Colorado Springs. AARP
ElderWatch is a partnership of the Colorado Attorney General and
the AARP Foundation.
FAX.COM: KY A.G. Stumbo Obtains Judgment For Unsolicited Faxes
--------------------------------------------------------------
Kentucky Attorney General Greg Stumbo's office obtained a
$50,000 judgment against the company that sent thousands of junk
faxes to residential fax machines in Kentucky.
In addition to the $50,000 judgment, Fax.com was permanently
forbidden, by Judge Martin McDonald of Jefferson Circuit Court,
from making telephone solicitations to Kentucky residents, and
from sending faxes to residential phone lines in Kentucky. The
order also permanently enjoins any company working with or for
Fax.com. from soliciting via telephone in Kentucky.
Fax.com, a California company, was a "fax blaster," sending
millions of unsolicited junk faxes, including unwanted faxes to
Kentucky residents selling products including discount vacation
packages, diet plans, stock buying tips and mortgage loans. The
Attorney General of Kentucky brought a lawsuit against the
company in July of 2003 under the Kentucky No-Call law after
having received 71 complaints.
"It is important that people be protected in their own homes
from harassment by telemarketers who use the telephone or fax
machines," said Attorney General Stumbo. "We will continue to
take action against companies which violate our No Call law."
Under the Kentucky No Call law, it is unlawful to send fax
advertisements to the residential phone numbers listed on the
Attorney General's No Call list. It is also a violation of
federal law to fax advertisements to residential or business
phone lines without the prior permission of the phone
subscriber.
Kentuckians can sign up for the Kentucky No Call list by calling
toll free 1-866-877-7867 or by visiting nocall.ky.gov.
For more information, please contact the Office of the Attorney
General, State Capitol, Suite 118, Frankfort, Kentucky 40601,
Phone: (502) 696-5300
FLORIDA: Resident Lodges Suit Claiming Dextromethorphan Useless
---------------------------------------------------------------
Cape Coral resident Tina Yescavage filed a civil suit against a
bevy of cough medicine manufacturers, saying an active
ingredient, dextromethorphan, has no medicinal effect on
patients and the over-the-counter product is as effective as a
glass of flavored water, the Bonita Daily News reports.
Attorney David Hughes, who is representing Ms. Yescavage in the
suit told the Daily News, "It's nothing more than a placebo and
to suggest anything otherwise is simply deceitful . These
substances are about as helpful as flavored water."
In her suit, Ms. Yescavage states that dextromethorphan "does
not work in children" and can "cause side effects including
severe allergic reactions." Mr. Hughes believes that the suit
could become a class-action complaint, and the crux is
financial: Customers are buying a product that doesn't work.
Furthermore, the suit states, "As a result of defendants'
unlawful conduct, and the perpetration of a massive fraud on the
consumers of Florida and the several states, plaintiffs . paid
for an ineffective product marketed as medicine."
Messages were left for representatives of Wyeth, Pfizer, McNeil-
PPC Inc., Novartis Corp., Prestige Brands Inc., and Procter &
Gamble Co., but they were unavailable for comment. Jody Cook, a
spokeswoman for Rite Aid Corp., said the drug store chain does
not operate any stores in Florida and couldn't comment on the
suit, the Bonita Daily News reports.
Local police, however, say dextromethorphan - also known as DXM
or dex - does work and even may be abused by people looking to
get high. Two Cape Coral teens died recently, police said, when
they overdosed on "Triple C," the over-the-counter Coricidin HBP
Cough & Cold, one of the cough medicines named in the suit.
Florida Department of Law Enforcement spokesman Larry Long told
the Daily News dextromethorphan-containing cough medicines
usually are quite effective, but can become dangerous and deadly
if abused. "It causes a high that kids and people compare to
LSD," Mr. Long said.
Though highly effective if used properly, according to Mr. Long,
people, who down several bottles or take several packages of
pills may get a high, but risk being injured or dying. Many
teens are opting for Coricidin, he said, because it contains a
greater amount of DXM than other cough medicines. Also called
Robo, Red Devils, and Poor Man's PCP, dex is a component in
Ecstasy, according to a January 2003 report by FDLE's Office of
Statewide Intelligence.
GANO EXCEL: Recalls Products Because of Undeclared Milk Content
---------------------------------------------------------------
GANO EXCEL USA, in Irwindale, CA is recalling GANO CAFE 3-IN-1,
GANOCAFE GINSENG TONGKAT ALI, and GANO C'REAL SPIRULINA OATS due
to undeclared milk products. People who have an allergy or
severe sensitivity to milk proteins run the risk of serious or
life-threatening allergic reactions if they consume these
products.
C'REAL SPIRULINA OATS have been sold person-to-person by
Independent Gano Excel(tm) Distributors throughout the United
States and Canada.
The products affected are as follows:
(1) GANO CAFE 3-IN-1 instant coffee beverage with Ganoderma
Extract sold in a package of 20 packets of 21 grams
each.
(2) GANOCAFE GINSENG TONGKAT ALI sold in a package of 15
packets of 23 grams each.
(3) GANO C'REAL SPIRULINA OATS sold in a package 15 packets
of 30 grams each.
No illnesses or reactions have been reported to date in
connection with these products. Gano Excel USA is conducting
this recall following sampling conducted by Health Canada that
revealed the presence of an undeclared milk protein, which was
not declared on the product label. Subsequent investigation
revealed the products contain the undeclared milk protein.
Consumers who have purchased these products should contact their
Independent Gano Excel Distributor for a full refund or call
Gano Excel USA at (626) 338-8081 for further information.
GENERAL ELECTRIC: Recalls 74.3T Dishwashers Due To Fire Hazard
--------------------------------------------------------------
In cooperation with the U.S. Consumer Product Safety Commission
(CPSC), GE Consumer & Industrial of Louisville, Ky. is recalling
about 74,300 multi-purpose General Electric Built-in
Dishwashers.
These dishwashers have a connector that can short-circuit and
overheat during normal use, posing a fire hazard to consumers.
GE received 29 reports of connectors overheating, including one
report of a fire that spread outside the dishwasher and caused
minor property damage. No injuries have been reported.
The following models are included in this recall and were sold
after January 20, 2004: GE dishwasher models GSD5500G, GSD5560G,
GSD5800G, GSD5900G, GSD5960G, EDW3000G, and EDW3060G, with
serial numbers with the first letter A through T and the second
letter G, or the serial letters VF. The serial number is
important, as not all dishwashers with these model numbers are
included in this recall. The model and serial number are located
inside the door wall of the dishwasher.
Manufactured in the United States, the dishwashers were sold at
appliance retail outlets and builder distributors nationwide
from January 2004 through February 2005 for between $300 and
$400.
Consumers should immediately stop using the dishwasher and
contact GE to arrange for their dishwashers to be repaired free
of charge.
Consumer Contact: Consumers should call GE at (800) 804-9802
from 8 a.m. to 8 p.m. ET Monday through Saturday to find out if
their dishwasher is included in this recall, and to arrange for
a free service call. For more information, consumers can log on
to the GE Recall Information page at
http://www.GEAppliances.com.
GENERAL MOTORS: Resident Files Suit Over Faulty Parking Brakes
--------------------------------------------------------------
Boyd Bryant filed a national class action against General Motors
Corp. in circuit court in Miller County for alleged faulty
parking brakes in certain makes of GM vehicles made from 1998
through 2004, the Texarkana Gazette reports. According to Mr.
Bryant's lawyer, James Wyly of Patton, Roberts, McWilliams &
Capshaw, there could be as many as 3 million vehicles affected.
The suit, which has been assigned to Circuit Judge Jim Hudson,
specifically alleges, "At some point after it began selling
vehicles with the defective parking brake, (GM) received many
reports from automobile owners and dealerships that the parking
brakes failed and/or had to be replaced."
State inspections brought the problems to light when the
vehicles failed to pass the customary annual checks. Mr. Wyly
believes that the vehicles' owners paid about $500 to replace
the parking brakes.
Court documents stated that "Despite the fact that (GM) was on
notice as to the parking brake's defective design, it did not
correct the design defects, but rather continued to sell the
vehicles with these defective brakes to the public. Likewise,
(GM) did not warn consumers and dealerships about the design and
manufacture defects in its parking brakes, but instead concealed
from the public the fact that its parking brakes were defective
and needed replacement."
Those potentially covered by the lawsuit are owners of:
(1) 2004 Buick Ranier
(2) 2002-2004 Cadillac Escalade, Escalade EXT
(3) 2003-2004 Cadillac Escalade ESV
(4) 1998-2004 Chevrolet Blazer
(5) 1999-2004 Chevrolet Silverado (1500 Series)
(6) 2000-2004 Chevrolet Suburban, Tahoe (1500 Series)
(7) 2002-2004 Chevrolet TrailBlazer, TrailBlazer EXT
(8) 2003-2004 Chevrolet Astro, Express
(9) 1998-2004 GMC Jimmy
(10) 1999-2004 GMC Sierra (1500 Series)
(11) 2000-2004 GMC Yukon (1500 Series)
(12) 2002-2004 GMC Envoy, Envoy XL
(13) 2003-2004 GMC Safari, Savana
(14) 2004 GMC Envoy XUV
(15) 1998-2004 Oldsmobile Bravada
The lawsuit though does exclude anyone, who suffered a personal
injury or property damage because of the allegedly faulty
brakes. Those who at any time prior to 2002 knew that the brakes
were allegedly defective also are excluded.
GREAT KINGSLAND: Recalls Food Products For Undeclared Sulfites
--------------------------------------------------------------
Great Kingsland, Inc. located at 1101 Metropolitan Avenue,
Brooklyn, NY 11211, is recalling Fortuner's brand Dried
Honeysuckle and BiFeng brand Dried Potato, because the products
contain undeclared sulfites. People who have a severe
sensitivity to sulfites run the risk of serious or life-
threatening allergic reaction if they consume these products.
The products were distributed to retail accounts in the New York
City area. These products were imported from China.
Fortuner's brand Dried Honeysuckle is packaged in a 4 oz. red &
clear colored flexible plastic bag with red, green, black, &
white lettering, and a yellow adhesive sticker identifying the
product name and weight. The product is visible through the
packaging and appears as dried flower petals. The bag has a
white adhesive sticker with red lettered nutritional facts panel
on the back and UPC bar code number 7 986988 932379.
BiFeng brand Dried Potato is packaged in a 7 oz. clear flexible
plastic bag with gold, red, black & white lettering and a white
adhesive sticker identifying the product name and weight. The
package has a white adhesive sticker with black lettered
nutritional facts panel on the back, with UPC bar code 6 92404
375259 and expiration date "20050716" on the back lower right
hand corner of the package.
The recall was initiated after samples collected by the Food and
Drug Administration revealed the presence of sulfites in
Fortuner's brand Dried Honeysuckle and BiFeng brand Dried Potato
in packages which do not declare the presence of sulfites. The
consumption of 10 milligram of sulfites per serving has been
reported to elicit severe reactions in some asthmatics.
Anaphylactic shock could occur in certain sulfite sensitive
individuals upon ingesting 10 milligram or more of sulfites. No
illnesses have been reported to date.
Consumers who have purchased packages of Fortuner's brand Dried
Honeysuckle and/or BiFeng brand Dried Potato are urged to return
them to the place of purchase. Consumers with questions may
contact the company at (718) 486-0188.
ILLINOIS: Attorneys Rush To File Suits in Madison County Court
--------------------------------------------------------------
Just before President George W. Bush signed the Class Action
Fairness Act of 2005, which would have pushed many class action
cases into federal court, Stephen Tillery, the name partner of
Korein Tillery of Swansea managed to file nine class action law
suits in Madison County Circuit Court, the Madison County Record
reports.
Mr. Tillery's suits targeted: Allstate, AIG, State Farm, Pfizer,
First Union National Bank, Select Portfolio, WMC, Mortgage,
American Equity Mortgage, De Beers and Diamond Trading Company.
The lawsuits by the firm alone made a record-setter for Madison
County. All told, thirteen were filed totaling 34 class action
lawsuits for the year.
In other "pre-deadline" class action filings:
(1) Edwardsville plaintiff's attorney Bob Perica joined the
last-minute filing madness. He filed a class action
suit against Sealy Mattress Company and department
store operator Famous Barr. Mr. Perica's plaintiff,
David Rook alleges that Sealy refused to replace a
warranted mattress because it has a stain on it. Rook
also alleges Famous Barr misrepresented the terms of
the warranty which he claims stated the mattress would
be repaired or replaced if defective.
(2) Plaintiff's attorney Jeffery Lowe of St. Louis named
more than fifty defendants in a class action alleging a
mini-blind sales conspiracy. Among them: K-Mart, Wal-
Mart, May Department Stores, Lowe's, Montgomery Ward,
Sears, JCPenny, Fingerhut, Super Dollar, Marietta
Drapery & Window, Ace Hardware, and Big Lots. Mr.
Lowe's lawsuit charges the retailers worked together to
conceal dangers associated with the popular window
coverings.
(3) Goldenberg, Miller, Heller, & Antognoli of Edwardsville
sued telecommunications fiber wholesaler 360 Networks,
Inc.
(4) The Law Offices of William E Miller sued Ford Motor
Company and Albrecht Hamlin Chevrolet of Wood River.
ILLINOIS: A.G. Madigan Files Suit V. Woman Posing as Attorney
-------------------------------------------------------------
Attorney General Lisa Madigan has filed suit against an
Arlington Heights woman who allegedly misrepresented herself as
an attorney to assist immigrants in gaining American
citizenship.
At least six consumers have filed complaints with Madigan's
Consumer Protection Division regarding payments they made to
Malgorzata Flak, also known as Malgorzata Szymczak. According to
Attorney General Madigan's complaint, some of the consumers were
never provided with a contract, all of the documents were
rejected and none of the consumers have received refunds.
Consumers allegedly paid Flak to submit applications and forms
to federal immigration authorities in 2002 to become legal
residents.
Attorney General Madigan's suit also alleges that Flak at times
posed as an attorney or a former immigration official and
accepted and charged fees that exceeded allowable amounts for
her services. In addition, her businesses were never registered
with The Attorney General's office as immigration services
providers.
From May 2002 until going out of business in August 2003, Ms.
Flak headed M&J Immigration Resources, Inc., 7911 S. Nagle, in
Burbank and later at 4728 N. Harlem Ave., in Harwood Heights. In
early September 2003, Ms. Flak responded to a civil
investigative demand from The Attorney General's office by
stating that she was out of business. However, later that same
month, Flak allegedly incorporated a not-for-profit business,
M&J Immigration Resources, NFP, at the same North Harlem
address.
"Immigration services providers can provide valuable services by
assisting people with a process that can be confusing at times,"
the Attorney General said. "Unfortunately, unscrupulous
providers often take people's money while taking advantage of
their desires to become U.S. citizens."
According to the Attorney General's complaint, in June 2002, Ms.
Flak allegedly represented herself as an attorney to a consumer
who paid her $1,305 to file documents to obtain permanent
residency with the U.S. Bureau of Citizenship and Immigration
Services (CIS).
Ms. Flak allegedly told the consumer that if M&J Immigration
Resources handled the application, the consumer would receive
legal residency within four to six months and would not have to
appear at a scheduled hearing. The application was denied. Ms.
Flak has refused to refund the consumer's payment even though
she previously promised to refund the money in the event the
application was rejected.
Another complainant stated she paid $1,555 to Ms. Flak in August
2002 for assistance in filing for permanent residency. She
allegedly claimed to have worked for the CIS and said she was in
the process of getting her law license. She also advised the
consumer that a new law was about to go into effect that would
allow the client permanent residency. Again, documents prepared
by Ms. Flak were rejected and she has refused to return the
complainant's money.
The Attorney General's complaint charges Flak and M&J
Immigration Resources, Inc., with violations of the Illinois
Consumer Fraud and Deceptive Business Practices Act.
Additionally, the complaint alleges that Flak's successor non-
profit company, M&J Immigration Resources, NFP, failed to
register as an immigration services provider with The Attorney
General's office, as required by law.
The lawsuit, filed February 15 in Cook County Circuit Court,
asks the court to impose a permanent injunction and order a
civil penalty of $50,000 and an additional $50,000 if the
actions were committed with the intent to defraud. Her suit also
seeks enforcement of civil investigative demands issued by The
Attorney General's office in October and November 2003 that were
ignored by Ms. Flak and her companies.
Assistant Attorney General Monica Grubbs is handling the case
for The Attorney General's Consumer Fraud Division.
ILLINOIS: Fan Lodges Lawsuit Over "Remastered" Osbourne Albums
--------------------------------------------------------------
Fans of Ozzy Osbourne filed a lawsuit in Cook County Circuit
Court, in Illinois, over alleged deceitful acts by Sony
Entertainment and Epic Records in releasing the "remastered"
versions of the Ozzy Osbourne's "Blizzard of Ozz" and "Diary of
a Madman" albums, because the original drummer and bassist on
the albums were replaced, the Chicago Sun-Times reports.
Anthony Wester, an Ozzy Osbourne fan, filed the suit on behalf
of himself and anyone else who bought the albums. The CDs,
released in 2002, were marketed as crisp updates of the
originals, with no mention that the sounds of bassist Bob
Daisley and drummer Lee Kerslake were cut out and replaced by
Robert Trujillo and Mike Bordin. Loyal fans of Osbourne
ridiculed the decision, which came after Mr. Daisley and Mr.
Kerslake filed lawsuits in a dispute over unpaid royalties from
the original albums.
Fans claim there's "a noticeable difference" in the changed
rhythm sections on the original and remastered albums, while Mr.
Wester says the change "forever altered and stained the legacy"
of the originals, as the new version "bears little relation to
the original."
Mr. Wester's Chicago attorney, Ben Barnow, who wants class-
action status for the suit, told the Sun-Times, "consumers are
supposed to get what they paid for. ... For a product as
treasured as these albums, to change the ingredient is to change
the product." He is hoping to recover damages on behalf of
anyone who felt deceived after listening to the 2002 version of
the albums.
ILLINOIS: A.G. Madigan Launches Consumer Suit V. NV, CA Firms
-------------------------------------------------------------
The office of Attorney General Lisa Madigan filed charges
against a Nevada corporation and a California collection agency
after 26 small businesses and individual consumers in 13
Illinois counties filed complaints alleging they had been
deceptively lured into signing advertising contracts and then
hounded for payments and added interest. Small businesses and
individuals from the following counties filed complaints with
The Attorney General's office: Champaign, Cook, DuPage, Henry,
Kane, Lake, Macon, McHenry, McLean, St. Clair, Tazewell, Warren
and Woodford counties.
The Attorney General's lawsuit alleges that by mailing
unsolicited checks in amounts of $3.47 or $3.49 to small
businesses, an advertising company allegedly tricked them into
entering "contracts" for $177 or $179 to promote their
businesses. Although the "contract" is in very small print on
the back of the checks, the company claims that when a small
business or individual endorses such a check, they become
responsible for a one-year contract with the company. The
collection agency is then sent to enforce those contracts.
The lawsuit, filed in Cook County Circuit Court, names as
defendants Yellow Pages, Inc., doing business as
www.YellowPagesInc.com, and Continental Recovery Services, doing
business as Continental Recovery and Filing Solutions and CRF
Solutions. Yellow Pages, Inc., is a Nevada corporation based in
Anaheim, California, and Continental Recovery Services is a
California corporation based in Simi Valley, California.
"Yellow Pages, Inc., allegedly took advantage of the consumer
trust built by the legitimate Yellow Pages phone directories and
scammed Illinois consumers into signing contracts with their
company," the Attorney General said. "Contracts hidden on the
back of checks are a deceptive and fraudulent way to acquire
business for a company. This fine print is costly, and as we
allege, deceptive."
Yellow Pages, Inc., allows the businesses 30 days from the date
the solicitation checks are cashed to cancel the contracts, but
The Attorney General's lawsuit alleges that many of the
businesses were not even aware they had entered into a contract
until after that 30-day period occurred. Some of the companies
allegedly first learned of their contracts with Yellow Pages,
Inc., when they began receiving collection letters from
Continental Recovery Services.
Some of the Illinois businesses receiving these solicitation
checks from Yellow Pages, Inc., already had accounts with the
local telephone company's Yellow Pages directories. The small
businesses told The Attorney General's office that upon
receiving the solicitations, they assumed the solicitation check
was a refund or other payment related to their advertising
contract and immediately deposited the money. However, Yellow
Pages, Inc., is in no way connected to the Yellow Pages
directories compiled across the country by various local
telephone providers.
In one complaint, an Illinois company alleges it never even saw
the check before it was deposited because the check was sent
directly to the Company's lockbox at Bank of America, where it
was automatically processed.
The lawsuit alleges Yellow Pages, Inc., turned over the unpaid
contracts to Continental Recovery for collection. Continental
Recovery then allegedly illegally added interest to the balances
being collected on behalf of Yellow Pages, Inc.
Both companies are charged with violations of the Illinois
Consumer Fraud and Deceptive Business Practices Act. Continental
Recovery also is charged with violations of the Illinois
Collection Agency Act for failing to register with the Illinois
Department of Financial and Professional Regulation as a
collection agency.
The Attorney General's lawsuit asks the court to prohibit the
defendants from further violating Illinois' consumer protection
laws. The lawsuit also seeks a civil penalty of $50,000 from
each defendant and additional penalties of $50,000 per violation
found to be committed with the intent to defraud. Finally, the
lawsuit asks the court to rescind all contracts entered into
between Yellow Pages, Inc., and Illinois consumers using these
deceptive methods, and orders the defendants to pay restitution
to consumers.
Assistant Attorney General Henry J. Ford, Jr., is handling the
case for Attorney General Madigan's Consumer Fraud Division.
IMPERIAL TOBACCO: Expresses Disappointment Over Quebec Ruling
-------------------------------------------------------------
Imperial Tobacco Canada expressed extreme disappointed with the
Qu‚bec Superior Court's decision to certify two class actions
against the three major tobacco companies in Qu‚bec.
The decision will give rise to years of litigation as the
classes include potentially more than two million members.
Tobacco companies have indicated that it will result in as many
individual trials in order to determine such things as the
health history, lifestyle choices and smoking history of each
individual who claims to be part of the class.
"The real winners in this class action will be the legions of
lawyers who will be employed for years to come trying to deal
with the individual issues that are inevitable in this type of
class action," said company's head of Public Affairs, Yves-
Thomas Dorval.
The tobacco company argued against certification, citing that
each class member would have to separately pursue their own
claim. This is because numerous individual issues are involved
and each individual claim would have to be adjudicated on its
own merits.
The Company also argued that the health risks of smoking have
been publicized, debated and promoted for half a century in
Canada, over which period millions of people have chosen to quit
smoking. Virtually the only tobacco advertising in Canada since
the 1980s has been that conducted by governments, health groups
and others to promote health warnings and non- smoking.
A previous hearing in Canada resulted in the Honourable Justice
Warren Winkler of the Ontario Superior Court of Justice denying
the class action certification request of four plaintiffs, on
February 4, 2004. He ruled that the class action did not raise
"common issues" as it must in order to obtain certification as a
class action. Also, courts in the United States have repeatedly
refused to certify class actions against tobacco manufacturers
precisely because there are many individual issues, making
individual actions the only realistic option for those who wish
to pursue a claim.
MARCHFIRST: Securities Suit Settlement Hearing Set April 6, 2005
----------------------------------------------------------------
The United States District Court for the Northern District of
Illinois - Eastern Division will hold a fairness hearing for the
proposed $18 million settlement in the matter: In re marchFIRST
Securities Litigation on behalf of all persons who purchased the
Company's common stock during the period from March 23, 2000
through November 20, 2000.
The Honorable John H. Grady will preside over the hearing in the
United States Courthouse, 219 South Dearborn Street, Chicago, IL
60604 at 11:30 a.m., on April 6, 2005.
For more details, contact In re marchFIRST Securities Litigation
c/o Gilardi & Co. LLC, Claims Administrator by Mail: P.O. Box
8040, San Rafael, CA 94912-8040 or visit their Web site:
http://www.gilardi.com.
NVIDIA CORPORATION: SEC Obtains Judgment V. Robert J. Prevett
-------------------------------------------------------------
The Securities and Exchange Commission obtained a judgment
against Robert J. Prevett (Prevett) ordering disgorgement of
ill-gotten gains, imposing an injunction against future
violations, and imposing civil penalties for illegal insider
trading in the securities of nVidia Corporation.
On Dec. 16, 2003, U.S. District Court Judge James Ware entered
final judgment for the Commission by permanently enjoining and
restraining Prevett from violating Section 10(b) of the
Securities Exchange Act, 15 U.S.C. 78j(b), and ordering
Prevett to disgorge illegal profits plus prejudgment interest in
the total amount of $401,032, and pay a civil penalty of
$300,000 pursuant to Section 21A of the Securities and
Exchange Act of 1934, 15 U.S.C. 78u-1 in light of Prevett's
willful conduct.
As described in the Commission's filings and/or the Court's Dec.
16, 2003 order, on Sunday, March 5, 2000, nVIDIA and Microsoft
entered into an agreement providing for nVIDIA to design and
manufacture the 3D computer graphics and multimedia sub-system
for Microsoft's planned video game console, the X-Box. That
evening, nVIDIA's president and chief executive officer sent an
email entitled "X is Ours!" to all nVIDIA employees, informing
them of the agreement and its huge revenue impact on nVIDIA. The
next morning, March 6, nVIDIA's vice president of marketing sent
an email to all nVIDIA employees entitled "xbox shhhhhh...",
reminding them that news of the X-Box agreement was
confidential.
On the morning of March 6, 2000, after reading both emails,
Prevett purchased 10,000 shares of nVidia stock on the open
market at a total price of $629,768. From March 7 through March
9, 2000, nVIDIA's share price soared, as rumors about the X-Box
contract circulated on the Internet and in the press. After
Microsoft announced the X-Box agreement to the public on the
morning of March 10, 2000, nVIDIA shares continued to rise,
closing that day at $118 per share, more than twice the closing
price on March 6.
The Commission filed its lawsuit against Prevett on Nov. 19,
2001. A criminal proceeding, which resulted in a conviction, was
also filed against Prevett at the same time.
In its civil suit, the Commission named Prevett, his then girl
friend, Wendy Goody, and her father, Clifford Goody, as
defendants. In July 2003, a civil jury found that Prevett had
violated Section 10(b) of the Exchange Act by purchasing 10,000
nVIDIA shares on March 6, 2000, while possessing material non-
public information. The jury did not find, however, that Prevett
tipped material non-public information to Wendy Goody or that
Wendy Goody traded upon or tipped material nonpublic
information. The jury also failed to find that Clifford Goody
traded upon material non-public information.
The Commission filed lawsuits against sixteen individuals,
including Prevett, for trading in nVidia securities in March
2000 prior to the public announcement of the X-Box contract. At
the current time, only the civil litigation against Atul Bhagat
is still pending. The action is entitled, SEC v. Robert J.
Prevett, et al., Civil Case No. C-01-21069] (LR-19091).
NY FISH: Recalls Salt Cured Herring For Botulinum Contamination
----------------------------------------------------------------
NY Fish, Inc., 738 Chester Street, Brooklyn, NY 11236 is
recalling all containers of its "Salt Cured Herring". The
herring was discovered to be uneviscerated by New York State
Department of Agriculture and Markets Food Inspectors during a
routine inspection. Management confirms that the fish had not
been eviscerated prior to processing.
This product may be contaminated with Clostridium botulinum
spores, which can cause Botulism, a serious and potentially
fatal food-borne illness.
The sale of this type of fish is prohibited under New York State
Agriculture and Markets regulations because Clostridium
botulinum spores are more likely to be concentrated in the
viscera than any other portion of the fish. Uneviscerated
processed fish has been linked to outbreaks of botulism
poisoning. Symptoms of botulism include blurred or double
vision, general weakness, poor reflex, difficulty swallowing and
respiratory paralysis.
NY Fish, Inc. "Salt Cured Herring" is packaged in 5-gallon,
white buckets. The recalled product was sold to stores in
Brooklyn, Queens and Staten Island. No illnesses have been
reported to date.
Consumers who have NY Fish, Inc. "Salt Cured Herring" are
advised not to eat it, but should return it to the place of
purchase. Consumers with questions should contact the Company at
718-342-4100.
PLUG POWER: Securities Suit Settlement Hearing Set April 29,2005
----------------------------------------------------------------
The United States District Court for the Eastern District of New
York will hold a fairness hearing for the proposed $5 million
settlement in the matter: In re Plug Power, Inc. Securities
Litigation (CV-00-5553 (ERK)(RML)) on behalf of all persons or
entities who purchased the common stock of Plug Power, Inc.
during the period commencing October 29, 1999 through and
including August 2, 2000.
The court will hold a hearing before the Honorable Edward R.
Korman in United States District Court for the Eastern District
of New York, 225 Cadman Plaza East, Brooklyn, New York 11201, at
3:00pm, on April 29, 2005.
For more details, contact Plug Power Securities Litigation c/o
The Garden City Group, Inc., Claims Administrator by Mail: P.O.
Box 9000 #6268, Merrick, NY 11566-9000 or by Phone:
(800) 261-6723.
POWEREX: A.G. Lockyer Launches Energy Price-Gouging Suit
--------------------------------------------------------
California Attorney General Bill Lockyer filed a lawsuit against
the Canadian energy company PowerEx, seeking restitution and
damages for massive over-charging on the part of the state
agency that bought power on behalf of ratepayers at the height
of the California Energy Crisis.
"PowerEx gamed the market, then gouged the state, taxpayers and
ratepayers," said the Attorney General. "It created conditions
that allowed it to hold California businesses and consumers
hostage, and left the state no choice but to pay the ransom. We
want that money back."
Filed on behalf of the California Department of Water Resources
(CDWR) in Sacramento County Superior Court, the lawsuit alleges
PowerEx helped manipulate the market to inflate prices and
create phony supply shortages. PowerEx then overcharged CDWR
when the agency was forced to buy energy directly from the
company to balance the electricity grid and avoid blackouts,
according to the complaint.
CDWR bought energy from PowerEx in so-called "out of market"
(OOM) transactions on thousands of occasions from January 17,
2001 through December 31, 2001, the complaint alleges. From
January 17, 2001 through June 20, 2001, when prices in OOM
transactions were uncapped, PowerEx overcharged CDWR about $850
million on purchases that totaled $1 billion, according to
Lockyer's office and CDWR.
After former Governor Gray Davis in January 2001 declared a
state of emergency related to the energy crisis, legislation was
enacted that charged CDWR with buying electricity to ensure a
stable supply for California homes and businesses. Subsequently,
the state's electricity grid operator, the California
Independent System Operator (ISO), called on CDWR to buy energy
when needed to maintain grid reliability or avoid blackouts. On
many occasions, CDWR was forced to buy more than 1,000 megawatts
of energy.
"Through duress and undue influence, PowerEx took an oppressive
and unfair advantage of the distress created by the California
Energy Crisis and the necessities which compelled (CDWR) to
procure sufficient energy to avoid blackouts," the complaint
alleges. "As a result of PowerEx's exercise of duress and undue
influence at the time the transactions with (CDWR) were made,
(CDWR's) agreements to the terms of the transactions were not
real, mutual or free. Moreover, the transactions are contrary to
the public policy and public interest of the State of
California."
The complaint lays out how PowerEx gouged CDWR. Starting in
January 2001, PowerEx and other companies refused to supply
energy to California through ISO and the other entity created to
run a wholesale electricity market, the California Power
Exchange (PX). Additionally, PowerEx and the other marketers
also refused to negotiate OOM transactions with ISO. Instead,
PowerEx insisted on dealing directly with CDWR in OMM
transactions. Why? Because under bizarre rules set by the
Federal Energy Regulatory Commission (FERC), dealing out of
market directly with CDWR left PowerEx freer to charge whatever
price it wanted.
When ISO turned to CDWR in dire straights, PowerEx, with its
access to extensive hydroelectric energy, often was the only
company able to provide CDWR the large amounts of power ISO
demanded. Having already unlawfully manipulated the market,
PowerEx then went on a gouging spree in its OOM transactions
with CDWR.
"PowerEx was ... aware that no other energy marketers were able
to supply (CDWR) with large volumes of energy on a real-time
basis and that PowerEx was (CDWR's) only option in its efforts
to help the ISO maintain grid reliability and avoid blackouts
during the Energy Crisis," the complaint alleges. "PowerEx used
this knowledge to demand exorbitant prices and impose onerous
transaction terms for the energy it supplied to (CDWR). In doing
so, PowerEx unfairly extracted millions of dollars from (CDWR)."
In the lawsuit, CDWR seeks to rescind all transactions with
PowerEx from January 17, 2001 through December 31, 2001 because
they resulted from duress and undue influence by PowerEx. On the
same grounds, the complaint asks the court to declare all the
transactions void and unenforceable. As financial remedy, the
complaint seeks compensatory damages and restitution of all
monetary benefits unjustly received by PowerEx from CDWR.
The lawsuit comes on the heels of testimony submitted last week
by Attorney General Lockyer, CDWR and other California parties
that provided new evidence of how PowerEx colluded with Enron to
perfect market manipulation schemes in Canada before setting its
sights on California. The California parties first submitted
evidence about PowerEx market misconduct to FERC in 2003.
The contract recission lawsuit is the second filed by California
officials against PowerEx. The Attorney General on December 22,
2004 filed a lawsuit alleging PowerEx violated California's
commodities fraud law by engaging in Enron-devised market
manipulation tactics such as Death Star, Fat Boy, Get Shorty and
Ricochet.
RADIATION THERAPY: Plaintiff Dismisses FL Securities Fraud Suit
---------------------------------------------------------------
The Kissel Family Trust voluntarily dismissed without prejudice
its securities class action filed against Radiation Therapy
Services, Inc. and certain of its directors and officers in the
United States District Court for the Middle District of Florida.
The complaint purported to be a class action on behalf of all
persons who purchased the Company's common stock between June
17, 2004 and September 8, 2004. The suit alleged that heavy
trading occurred on the Nasdaq during the initial offering, in
which 5.5 million shares of common stock were offered at $13 a
share. Radiation Therapy Services trades under the symbol RTSX.
The lawsuit further alleged that the Company prospectus had
indicated that Radiation Therapy's growth strategy was to
increase its market share within its regional networks and to
move into new regions, expand its offering of advanced treatment
services, add more radiation oncologists and pursue other growth
avenues.
During initial trading, 5.5 million shares of stock were sold to
the public, which raised $71.5 million for the Company,
according to the lawsuit. On September 9, Banc of America
Securities evaluated Radiation Therapy for investors'
consideration and issued a "sell" rating and an $11 target
price.
The Company allegedly failed to disclose that the initial public
offering was "purely a liquidity event for management/owners,
not a source of growth capital" the lawsuit says of the bank
securities house report, an earlier Class Action Reporter story
(December 22,2004) states. The Company was also allegedly
engaged in numerous transactions that increased its risk of
violating state and federal laws governing corporate medical
practices, such as fee splitting and physician referrals.
On December 10, 2004 an order was entered by the court
dismissing this action without prejudice in response to a notice
of voluntary dismissal without prejudice filed by counsel for
the Kissel Family Trust. The Company did not pay any
consideration or compensation to the Kissel Family Trust or
their counsel in connection with the dismissal.
The suit is styled "Kissel Family Trust v. Radiation Therapy
Services, Inc. et al, case no. 2:04-cv-00470-JES-SPC," filed in
the United States District Court for the Middle District of
Florida under Judge John E. Steele.
Representing the defendants is Charles P. Campbell, Jr.,
Shumaker, Loop & Kendrick, LLP, Phone: 101 E. Kennedy Blvd.,
Suite 2800, P.O. Box 172609, Tampa, FL 33672-0609, Phone:
813/229-7600, Fax: 813/229-1660, E-mail: pcampbel@slk-law.com.
Representing the plaintiffs are:
(1) Chris A. Barker, Barker, Rodems & Cook, P.A., 300 W.
Platt St., Suite 150, Tampa, FL 33606, Phone: 813/489-
1001, Fax: 813/489-1008, E-mail:
cbarker@barkerrodemsandcook.com
(2) Marc A. Topaz, Schiffrin & Barroway, LLC, 280 King of
Prussia Road, Radnor, PA 19087, Phone: 610/667-7706
SALTON INC.: Recalls 2,700 Cordless Kettles For Lead Leaching
-------------------------------------------------------------
Salton, Inc. of Lake Forest, IL, is voluntarily recalling
approximately 2,700 Russell Hobbsr Mona Cordless Jug Kettles,
Model No. RHMK 3022, manufactured by Chiaphua Industries
Limited, due to their alleged ability to leach lead. Lead
exposure may cause serious injury to infants and young children.
To date, Salton, Inc. has only received notice of one such
consumer complaint.
The only affected kettles are the Russell Hobbsr Mona Cordless
Jug Kettles, Model No. RHMK 3022, shipped in limited quantities
only during the period between July 2002 through October 2004.
The affected kettles are 10 inches in height, are silver in
color, and were sold in the United States through Bloomingdales
and Bed Bath & Beyond, through Salton, Inc.'s online store and
some of Salton, Inc.'s outlet stores, and through various e-
tailers during that same period of time.
Consumers in possession of a Russell Hobbsr Mona Cordless Jug
Kettle should contact Salton, Inc.'s 24-hour Consumer Relations
Department at 800-233-9054. Further information will be
available at Salton's website, http://www.esalton.com.
SCOTTSDALE SUZUKI: AZ A.G. Goddard Alleges TV Ads Are Fraudulent
----------------------------------------------------------------
Arizona Attorney General Terry Goddard filed suit against
Scottsdale Suzuki Superstore, Inc. alleging the dealer made
misleading and deceptive statements in television ads
guaranteeing a minimum trade-in for the purchaser of a new car
at its Tempe dealership. In addition, the lawsuit alleges that
Scottsdale Suzuki Superstore, Inc. placed misleading information
concerning "dealer installed accessories and service charges" on
the window stickers of new cars.
The lawsuit states that Scottsdale Suzuki Superstore, Inc. ran
television ads on KSAZ, Channel 10 in Phoenix and corresponding
print ads in the East Valley Tribune. The ads indicated that
Scottsdale Suzuki would guarantee a minimum of $5,000 for a
trade-in during a sales campaign in May 2004, called "Push,
Pull, Tug or Tow your Trade." Small print appearing briefly
onscreen and at the bottom of the newspaper ads, stated that the
offer applied only to the purchase of vehicles in the "service
area". The lawsuit alleges that there were only four or five
only used vehicles in the service area for which a consumer
could receive the advertised minimum trade.
According the complaint filed in Maricopa County Superior Court,
a consumer went into the dealership to take advantage of the
$5,000 trade-in and was turned down. She eventually purchased a
2004 Suzuki Forenza, including the "Dealer Installed Accessories
and Service Charges". The lawsuit alleges that days later she
realized that she had not received the accessories listed on the
window sticker worth about $2,000.
"New and used car purchase problems continue to be among the top
complaints received each year," Goddard said. "Arizona Consumers
depend on a fair and truthful marketplace, this kind of bait and
switch practices are intolerable. We will continue to monitor
car sales ads to ensure consumers are not tripped up by
deceptive sales pitches."
The Attorney General's Office is asking the Maricopa County
Superior Court to:
(1) Prohibit Scottsdale Suzuki from engaging in false
advertising
(2) Order Scottsdale Suzuki to offer restitution for
consumers
(3) Reimburse attorneys' fees and investigation costs
(4) Impose a penalty of up to $10,000 for each willful
violation of the Arizona Consumer Fraud Act
Consumers who attempted to take advantage of the advertised
guaranteed trade-in deal at Scottsdale Suzuki Superstore, Inc.
of this sale and could not are requested to file a consumer
complaint with the Attorney General's Office by visiting the
Attorney General's Web site: http://www.azag.gov(click on the
consumer complaint form box). Consumers can also contact the
Phoenix office at 602-542-5763. A copy of the complaint can be
found at this Website:
http://www.attorney_general.state.az.us/press_releases/feb/2005/
suzuki%20complaint.pdf.
SOUTH KOREA: Class Action Law Revision Allows "Grace Period"
-----------------------------------------------------------
The legislation and judiciary committee of South Korea's
National Assembly held a sub-committee meeting for legislation
deliberation on February 21 and passed the revised bill for the
securities class action law, with the outline that if a company
opens to the public its account book to resolve its past window-
dressing, it will be exempt from class action of that specific
instance until the end of 2006, the Donga.com, South Korea
reports.
Specifically the revised bill will not only exempt the company
which committed the window-dressing in the past, but also the
accounting firm or accountant which audited the account books of
that company will also be exempted from the securities class
action for two years.
The Finance and Economy Ministry, the Justice Ministry, the
Financial Supervisory Commission, and the Financial Supervisory
Service jointly planned the revised bill that was passed.
The revised bill states that the acts to notify publicly the
exact amount on the financial statement from window-dressing
without increasing or decreasing it during the grace period, and
to decrease the excessively added amount or increase the
underreported amount will be excluded from class action
lawsuits. It also limits the subjects of class action lawsuit to
"false public notification acts" and not simply "past window-
dressing."
In addition to the exemptions, the revised bill will also
subject increasing the window-dressing scale to hide the past
window-dressing or window-dressing with a new accounting item
will all be considered as "current window-dressing," to the
lawsuit.
The ruling and opposition parties are set to deliberate on the
revised bill and pass it in a plenary meeting of the legislation
and judiciary committee on February 23, and then it will handle
the revised bill in the regular session on February 25.
SPEAR & JACKSON: Shareholders Lodge Stock Fraud Suits in S.D. FL
----------------------------------------------------------------
Plaintiffs filed a consolidated securities class action against
Spear & Jackson, Inc. in the U.S. District Court for the
Southern District of Florida on behalf of purchasers of the
Company's publicly traded securities during the period between
July 14, 2003 and April 15, 2004. The suit also names as
defendants Sherb & Co LLP, the Company's outside auditor, and
certain of the Company's directors and officers, including
Dennis Crowley, its chief executive officer and William
Fletcher, chief financial officer.
The complaint charges the Company and certain of its officers
and directors with violations of the Securities Exchange Act of
1934. SJCK manufactures and distributes tools, garden tools,
metrology equipment, woodworking tools and magnetic equipment.
The suit is styled Lee, et al v. Spear & Jackson, et al, case
no. 04-CV-80375, filed in the U.S. District Court Southern
District of Florida (W.Palm Beach), under Judge Donald M.
Middlebrooks.
Representing the Company is Allan Michael Lerner, 2888 E Oakland
Park Boulevard, Fort Lauderdale, FL 33306, Phone: 954-563-8111.
Lawyers for the plaintiffs are:
(1) Paul Jeffrey Geller, Jack Reise, Robert Jeffrey
Robbins, Lerach Coughlin Stoia Geller Rudman & Robbins,
197 S Federal Highway, Suite 200, Boca Raton, FL 33432,
Phone: 561-750-3000
(2) Samuel H. Rudman, Cauley Geller Bowman & Rudman, 200
Broadhollow Road, Melville, NY 11747
(3) Kenneth J. Vianale, Vianale & Vianale, 5355 Town Center
Road, Suite 801, Boca Raton, FL 33486, Phone: 561-391-
4900
TARGET CORPORATION: Recalls 135T "ENA" Boots Due To Injury Risk
---------------------------------------------------------------
In cooperation with the U.S. Consumer Product Safety Commission
(CPSC), Target Corporation, of Minneapolis, Minn. is recalling
about 135,000 Merona Women's Sidezip "ENA" Style Boots.
The heel on the boot can detach from the sole while in use,
causing the consumer to fall. Target has received 19 complaints
of the heels breaking off, including one report of a sprained
ankle.
The Merona Women's sidezip boot comes in black or brown with a
three-inch heel in sizes 5 1/2 through 11. The style numbers
included in this recall are 096-10-1180 through 1190 for the
black boots and 096- 10-1200 through 1210 for the brown boots.
These numbers appear on the interior zipper liner along with the
words, "All Man Made Materials," "Made in China," "Merona" and
"ENA".
Manufactured in China, the boots were sold at all target stores
nationwide and through Target's Web site from July 2004 through
January 2005 for about $25.
Consumers should stop wearing the boots immediately and return
them to the nearest Target store for a full refund.
Consumer Contact: Consumers can either go on line at
http://www.target.comor visit or call their local store for
information or to obtain a refund.
UNITED STATES: S.5 Could Precipitate Consolidation Of Law Firms
---------------------------------------------------------------
The passage of the Class Action Fairness Act of 2005, also known
as S.5, could accelerate the consolidation of law firms that
specialize in bringing class-action suits, according to lawyers,
the Reuters News Service reports.
"It will have a deterrent effect on the small law firms,"
Merrida Coxwell, who heads Coxwell & Associates, a five-lawyer
firm and who is also the president of the Mississippi Trial
Lawyers Association told Reuters. "In a way, it may cause
consolidation of lawyers into bigger national law firms."
The new law, which was sought by businesses but opposed by
consumer groups, would shift suits seeking class-action status
such as those against sellers of tobacco and asbestos products
to federal court if the total amount of claims exceeds $5
million.
With its passage, lawyers say that plaintiffs' lawyers, who have
often preferred to file cases in states where judges are more
inclined than federal judges to certify class-action status,
which can mean big payouts to lawyers who are successful in
winning big awards, would have to spend time and money traveling
to distant U.S. district courts. In addition, they also might be
under pressure to produce more sophisticated, better-researched
material in front of a higher court.
Backers of the new law though reiterate that the changes are
necessary to stop aggressive trial lawyers from seeking out
friendly state judges willing to grant class-action status and
to approve large settlements against out-of-state businesses.
Plaintiffs' lawyers, however, say that the new law is a win for
big business. Also, according to them, the law will flood an
already crowded and overburdened federal court by shifting the
workload to the fewer than 800 federal judges from the thousands
of state judges.
Elizabeth Cabraser, founding partner of the San Francisco firm
Lieff Cabraser Heimann & Bernstein, told Reuters she expects the
new law will force smaller firms or single practitioners to hook
up with larger firms such as hers that have the resources to see
a suit through to either a judgment or a settlement.
Lawyer Lorie Almon, an attorney at Seyfarth Shaw in New York,
who defends corporations, told Reuters the new law would put an
end to the coziness that comes from familiarity in the state
court systems. According to her, "I think often law firms carve
out a niche for themselves where they are, because they play
golf with a particular judge or because they understand local
practice." That advantage though ends in federal court, where
jurisdictions are spread over a larger area, she points out.
Still, defense attorneys know that their adversaries are a
feisty, aggressive lot, and not easily deterred. "The
plaintiffs' bar is highly resilient," Evan Tager, an attorney
with Mayer, Brown, Rowe & Maw LLP, the firm that represented the
U.S. Chamber of Commerce in its lobbying effort in favor of the
act, told Reuters. Mr. Tager said he expects lawyers to craft
their complaints to meet the federal criteria for class-action
status.
VALENTINE KANSAS: Settles KS A.G. Kline's Consumer Fraud Suit
-------------------------------------------------------------
An Overland Park dating service sued for committing numerous
alleged violations of the Kansas Consumer Protection Act will
provide restitution to 86 Kansas consumers as part of a
settlement agreement announced by Kansas Attorney General Phill
Kline and Sedgwick County District Attorney Nola Foulston last
week.
"I am pleased with this settlement not only because it provides
restitution to those consumers who were deceived by the
practices of this company, but also because it will help protect
future customers from such practices," Attorney General Kline
said.
Valentine Kansas City, LLC, d/b/a Great Expectations, one of its
owners, Michael Holland, regional director Robert Rance, center
directors Nikki Sade and Jody Johnson, and salespeople Christina
Morgan and Jules Seelen were all named as defendants in the
lawsuit filed in February 2004 in Sedgwick County District
Court. The suit sought consumer restitution and civil fines and
penalties for over one hundred alleged violations of the Kansas
Consumer Protection Act and the Kansas No-Call Act while Great
Expectations solicited new clients.
Valentine Wichita, LLC, d/b/a Great Expectations, was also named
in the suit but declared bankruptcy on December 10, 2004.
"Collaboration between this office and the Kansas Attorney
General's Office resulted in a settlement for consumers in
Sedgwick County and other Kansas counties," Sedgwick County
District Attorney Nola Foulston said. "This office welcomes
other collaborative opportunities with the Attorney General's
Office to protect the consumer rights of citizens in this county
and throughout Kansas."
Under terms of the settlement agreement, Great Expectations
admitted that they made misrepresentations to 86 consumers who
had filed complaints with Attorney General Phill Kline's office
and with the Sedgwick County District Attorney's office.
Specifically, the defendants admitted that they:
(1) Told potential members that the business did "criminal
background checks" on members, when they knew that no
such checks were performed;
(2) Misrepresented the number of members available to those
consumers; and
(3) Over-promised the consumers that they would get dates
with a certain type or quality of person.
Great Expectations also agreed to provide restitution totaling
$215,000 by March 29, 2005 to the consumers named in the suit.
Those consumers will receive letters later this month telling
them how to submit a claim for their share of the proceeds.
Consumers should receive reimbursement for the initial cost of
their membership and may receive part of any monthly fees paid
as well, depending on the number of consumers who file a claim
for restitution.
Great Expectations has also agreed to make significant changes
in the way it does business. Under terms of the settlement, the
company has agreed to:
(i) Post the number of current members at that location in
a conspicuous place for current and potential customers
to see;
(ii) Continue recording all sales interviews and make those
available to the Kansas Attorney General or Sedgwick
County District Attorney upon request; and
(iii) Refrain from making any promises as to particular
outcome or assuring someone that they can find a date
through the service.
The Company will also start providing a separate written notice
to consumers that will disclose the number of current active
members and that no particular number of dates can be promised
if they decide to join. They have also started to use an outside
screening service that checks for criminal convictions of
potential members but will disclose to potential members that
this is only a limited criminal screening process.
"I applaud the excellent work done by the Consumer Protection
and Antitrust Division of this office and that of District
Attorney Nola Foulston's Economic Crime and Consumer Fraud
Division," Kline said. "This is another great example of what
can be accomplished through multi-agency cooperation and I look
forward to continuing the strong working relationship we have
with District Attorney Foulston in the future."
Attorney General Phill Kline's Consumer Protection and Antitrust
Division and Sedgwick County District Attorney Nola Foulston's
Economic Crime and Consumer Fraud Division will be reimbursed a
total of $100,000 to cover the cost of the investigation,
litigation, and distribution of consumer restitution.
VALUEPOINT PARTNERS: Suit Settlement Hearing Set February 2005
--------------------------------------------------------------
The United States District Court for the Northern District of
California will hold a fairness hearing for the proposed
settlement in the matter: In re Valuepoint Partners, Inc. v. ICN
Pharmaceuticals, Inc. on behalf of all persons and entities who,
on or before July 10, 2002, purchased or otherwise acquired any
of the $525 million of 6.5% convertible subordinated notes due
2008 sold by ICN in or traceable to the offering, which occurred
on or about November 9, 2001.
The court will hold a hearing before the Honorable David O.
Carter, on February 28, 2005, at 8:30 a.m., at the United States
District Court for the central District of California, 411 West
Fourth Street, Santa Ana, CA.
For more details, contact In re Valuepoint Partners, Inc. v. ICN
Pharmaceuticals, Inc. c/o A.B. Data, Ltd. by Phone: P.O. Box
170200, Milwauke, WI 53217-8016 OR S. Gene Cauley, Esq. or J.
Allen Carney, Esq. or Marcus N. Bozeman, Esq. by Mail: 11311
Arcade Drive, Suite 200, Little Rock, AR 72212.
WORLD WIDE: IL A.G. Madigan Launches Illegal Advertising Lawsuit
----------------------------------------------------------------
The office of Attorney General Lisa Madigan filed a lawsuit in
federal court alleging a Florida credit service organization
that solicits customers across the United States by sending spam
faxes has violated both state and federal consumer protection
laws with its illegal advertising practices and false credit
repair promises.
Attorney General Madigan's lawsuit alleges that a Florida credit
repair company illegally solicits businesses by sending
unsolicited fax messages, has never registered to do business in
Illinois, makes false promises to consumers about repairing
their credit histories and accepts money for services they do
not perform.
The Attorney General's lawsuit charges World Wide Search
Systems, Inc., a Florida corporation also doing business as
National Financial Credit Association, with violations of the U.
S. Credit Repair Organizations Act, U.S. Telephone Consumer
Protection Act, Illinois Consumer Fraud and Deceptive Business
Practices Act and Illinois Credit Services Organization Act. The
lawsuit was filed today in U.S. District Court for the Northern
District of Illinois, Eastern Division.
According to the lawsuit, World Wide Search Systems allegedly
made false claims that it would improve clients' credit scores
by 15 percent within 90 days; remove derogatory items such as
bankruptcies, tax liens, student loans, late payments, judgments
and foreclosures from credit histories; assist clients in
preparing a 100-word statement to be added to their credit
reports; and negotiate consumers' debts.
The lawsuit also alleges World Wide Search Systems accepted
between $500 and $4,200 per consumer to repair their credit
histories. The company allegedly requested at least partial
payment in advance for its services.
Additionally, the complaint alleges that World Wide Search
Systems never registered as a credit services organization with
the Illinois Secretary of State's office, as required by state
law, and allegedly falsely claimed to be recognized by the
Federal Trade Commission to perform credit repair services.
Finally, Attorney General Madigan's complaint asserts that in
violation of federal law, World Wide Search Systems allegedly
sent unsolicited advertisements to small businesses and
individual consumers' fax machines. In addition, these fax
messages allegedly were often sent without the date and time of
the message included at the top of the page and without
identifying the business or individual that sent the message.
One of the Company's faxed ads says, "We can go where most all
other credit organizations fail to go." Another ad asks, "Are
you or someone you know being held hostage by your credit score?
Do you know yours?"
"World Wide Search Systems uses fax machines to transmit false
promises of improved credit," the Attorney General said. "Not
only are the company's advertising techniques in violation of
federal law, but their pledge to improve people's credit is in
violation of our state consumer protection laws. Unless there
are errors involved, which you can find yourself, the only
person who can improve your credit is you."
Attorney General Madigan's lawsuit requests that World Wide
Search Systems be prohibited from further violating federal or
state consumer protection laws. The lawsuit also seeks a civil
penalty of $50,000, additional penalties of $50,000 per
violation found to have been committed with the intent to
defraud and a $10,000 penalty for each violation found to be
committed against persons 65 years or older. Finally, her
lawsuit asks the court to order the defendants to pay
restitution to consumers.
Assistant Attorney General Ryan Tyrrell is handling the case for
Attorney General Madigan's Consumer Fraud Division.
XCEL ENERGY: ERISA Settlement Hearing Scheduled April 1
-------------------------------------------------------
The United States District Court for the District of Minnesota
will hold a fairness hearing for the proposed $8 million
settlement in the matter: In re Xcel Energy, Inc. ERISA
Litigation (Case Nos. 03-2218 and 03-2219) on behalf of all
persons who were participants or beneficiaries in the Xcel
Energy Inc. 401 (k) Savings Plan and its predecessor plans or
the New Century Energies Employees Savings and Stock Ownership
Plan for Bargaining Unit and Non-Bargaining Unit Employees and
who had Xcel Common stock allocated to your account at any time
from September 23, 1999 to March 31, 2003.
The court will hold a hearing on April 1, 2005 at the United
States Courthouse, 300 S. 4th Street, Minneapolis, Minnesota.
For more details, contact the Settlement Administrator by Phone:
1-866-890-4859 or visit their Web site:
http://www.xcelenergysettlement.com.
XCEL ENERGY: Securities Suit Settlement Hearing Set April 1,2005
----------------------------------------------------------------
The United States District Court for the District of Minnesota
will hold a fairness hearing for the proposed settlement in a
securities class action lawsuit about the prices of Xcel Energy,
Inc. stock and NRG Energy, Inc. Senior Notes, and in a
derivative lawsuit about the actions of Xcel's board of
directors and officers.
The court will hold a hearing on April 1, 2005 at the United
States Courthouse, 300 S. 4th Street, Minneapolis, Minnesota.
For more details, contact the Xcel Energy Settlement, c/o
Analytics, Inc. by Mail: P.O. Box 2007, Chanhassen, MN 55317-
2007 by Phone: 1-866-890-4859 or visit their Web site:
http://www.xcelenergysettlement.com
ZUCHORA CONSTRUCTION: Faces FL Attorney General's Fraud Suit
------------------------------------------------------------
Florida Attorney General Charlie Crist filed a civil complaint
alleging that a contractor no longer licensed by the State of
Florida sold contracts to elderly South Florida consumers
promising hurricane preparedness services but then failed to
deliver the services during the state's devastating 2004
hurricane season.
Attorney General Crist sued Zuchora Construction, Inc., and its
President, Ronald Zuchora, for violations of the Florida
Deceptive and Unfair Trade Practices Act. Mr. Zuchora, a
resident of Lighthouse Point, had his general contractor's
license revoked by the state in 2001.
The Attorney General's complaint alleges that since 2000,
Broward County-based Zuchora Construction sold $250-a-year
service contracts to Palm Beach County consumers - most of whom
were elderly - promising to install hurricane shutters whenever
a hurricane warning was issued for their area. Zuchora promised
to then remove the shutters within 72 hours after the hurricane
warning was lifted. The Company said it would perform the
services automatically, without the consumer having to make a
specific request. However, the services were not provided as
promised during the recent hurricane season.
"Many of our elderly citizens were the victims of empty
promises," said Attorney General Crist. "These consumers thought
they were buying a measure of comfort and security, but in the
end all they received were disappointment and worry. There is no
place in our state for anyone who would treat consumers with
such shameful disregard."
The Attorney General's complaint alleges that in order to
solicit customers, Zuchora Construction repeatedly
misrepresented that it was a state-certified general contractor,
even though its license had been revoked. The company received
$250 annual payments from customers, but was not required to
perform the promised installation services for several years
because no hurricanes threatened the Palm Beach County area.
Many consumers renewed their contracts annually, paying Mr.
Zuchora up to $1,250 for five consecutive years of hurricane
protection.
The Company began to break its promises in 2004, when Hurricanes
Frances and Jean threatened Palm Beach County. Some customers
received the shutter services, but many received nothing from
Mr. Zuchora but false promises that hurricane shutters would be
installed promptly. To date the Attorney General's Office has
received complaints and sworn affidavits from 91 consumers, the
vast majority of whom reported that Mr. Zuchora failed to
install any shutters for them during the 2004 hurricane season.
Many of these consumers had to make emergency arrangements with
other installers at prices ranging from $200 to $1,050, while
others were forced to place their lives and property at risk by
foregoing hurricane protection.
Mr. Zuchora sent a letter of apology to its customers promising
refunds, and did in fact make some refunds. However, the
majority of consumers have not received the promised refunds.
The Attorney General's lawsuit seeks full restitution for all
affected consumers and an injunction prohibiting Zuchora
Construction and Ronald Zuchora from contracting for hurricane-
or shutter-related services, from general contracting work, or
from any services involving the collection of an advance payment
or deposit. The complaint also seeks penalties of $15,000 per
violation where the victim was a senior citizen and $10,000 for
each violation involving younger victims.
A copy of the complaint against Brink can be viewed at:
http://www.myfloridalegal.com/ZuchoraComplaint.pdf
Meetings, Conferences & Seminars
* Scheduled Events for Class Action Professionals
-------------------------------------------------
February 28, 2005
LEXISNEXIS PRESENTS WALL STREET FORUM: ASBESTOS
Mealey Publications
The Ritz-Carlton Hotel, Battery Park, New York City
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
February 28 - March 1, 2005
REINSURANCE ARBITRATIONS
American Conferences
New York, NY
Contact: http://www.americanconference.com
February 28 - March 1, 2005
INSURANCE LITIGATION 101
Mealey Publications
The Rittenhouse Hotel, Philadelphia
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 1, 2005
INSURANCE COVERAGE FOR FINANCIAL INSTITUTION EXPOSURES
Mealey Publications
The Ritz-Carlton Hotel, Battery Park, New York City
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 3-4, 2005
TRANSPORTATION MEGACONFERENCE VII
American Bar Association
New Orleans, LA
Contact: 800-285-2221; abasvcctr@abanet.org
March 3-4 , 2005
LITIGATING DISABILITY INSURANCE CLAIMS
American Conferences
Coral Gables
Contact: http://www.americanconference.com
March 3-5, 2005
LITIGATING MEDICAL MALPRACTICE CLAIMS
ALI-ABA
Scottsdale, Arizona
Contact: 215-243-1614; 800-CLE-NEWS x1614
March 7-8, 2005
INSURANCE LITIGATION 101
Mealey Publications
Hotel Crescent Court, Dallas
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 7-8, 2005
CLASS ACTIONS
American Conferences
San Francisco
Contact: http://www.americanconference.com
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
March 14-15, 2005
WELDING ROD LITIGATION CONFERENCE
Mealey Publications
The Ritz Carlton Phoenix, Phoenix AZ
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 17-18, 2005
Mass Torts Made Perfect
The Plaza New York, New York
Mass Torts Made Perfect
Contact: 1-800-320-2227; 850-436-6094
March 18, 2005
CONFERENCE ON INSURANCE AND FINANCIAL SERVICES LITIGATION
American Bar Association
New York
Contact: 800-285-2221; abasvcctr@abanet.org
March 21, 2005
FAMILY LAW CONFERENCE
Mealey Publications
Wyndham Franklin Plaza Hotel, PA
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 21, 2005
MOTOR VEHICHLE LIABILITY CONFERENCE
Mealey Publications
Wyndham Franklin Plaza Hotel, PA
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 21-22, 2005
AIRLINE RESTRUCTURING
American Conferences
New York
Contact: http://www.americanconference.com
March 31-April 1, 2005
THE 4TH INTERNATIONAL ADVANCED FORUM ON RUN-OFF AND COMMUTATIONS
American Conferences
The Warwick New York Hotel, New York, NY
Contact: http://www.americanconference.com
April 4-5, 2005
MANAGED CARE LIABILITY
Mealey Publications
The Four Seasons Hotel, Philadelphia
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
April 7-8, 2005
THE 4TH NATIONAL ADVANCED GUIDE TO CONSUMER FINANCE LITIGATION
AND CLASS ACTIONS
American Conferences
Le Meridien , Chicago, IL
Contact: http://www.americanconference.com
April 11-12, 2005
BAD FAITH AND PUNITIVE DAMAGES
American Conferences
San Francisco
Contact: http://www.americanconference.com
April 13-16, 2005
INSURANCE INSOLVENCY AND REINSURANCE ROUNDTABLE
Mealey Publications
The Fairmont Scottsdale Princess, Scottsdale AZ
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
April 18-19, 2005
ENVIRONMENTAL LITIGATION CONFERENCE
Mealey Publications
The Four Seasons Hotel, Houston
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
May 2005
INTERNATIONAL ASBESTOS CONFERENCE
Mealey Publications
London, England
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
May 11, 2005
BROKER AND INSURANCE COMPANY PRACTICES AND LIABILITIES
CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel, Boston
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
May 12-13, 2005
ADDITIONAL INSURED CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel, Boston
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
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 16-17, 2005
RUN-OFFS SEMINAR
Mealey Publications
The Ritz-Carlton Hotel, Boston
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
May 16-17, 2005
ADDITIONAL INSURED CONFERENCE
Mealey Publications
The Ritz-Carlton Huntington Hotel & Spa, Pasadena CA
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
May 19-20, 2005
DIGITAL DISCOVERY AND ELECTRONIC EVIDENCE
ALI-ABA
Chicago
Contact: 215-243-1614; 800-CLE-NEWS x1614
June 9-10, 2005
NURSING HOME LITIGATION CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel, Amelia Island
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
June 9-10, 2005
ASBESTOS BANKRUPTCY CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel, Chicago
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
June 13-14, 2005
PPA & EPHEDRA LITIGATION CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel, New Orleans
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
June 13-14, 2005
DRUG LITIGATION 101
Mealey Publications
The Ritz-Carlton Hotel, New Orleans
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
June 13-14, 2005
MOLD LITIGATION CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel, Marina Del-Ray, CA
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
June 27-28, 2005
LITIGATING EMPLOYMENT DISCRIMINATION & SEXUAL HARASSMENT CLAIMS
2005
Practising Law Institute
New York, NY
Contact: 800-260-4PLI; 212-824-5710; info@pli.edu
JulY 28 - 29, 2005
CLASS ACTION LITIGATION: PROSECUTION & DEFENSE STRATEGIES 2005
Practising Law Institute
New York, NY
Contact: 800-260-4PLI; 212-824-5710; info@pli.edu
August 18-19, 2005
PRODUCTS LIABILITY
ALI-ABA
San Francisco
Contact: 215-243-1614; 800-CLE-NEWS x1614
September 8-9, 2005
CLASS ACTION LITIGATION: PROSECUTION & DEFENSE STRATEGIES 2005
Practising Law Institute
Chicago, IL
Contact: 800-260-4PLI; 212-824-5710; info@pli.edu
September 26-27, 2005
REINSURANCE SUMMIT
Mealey Publications
The Ritz-Carlton Hotel, Boston
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
September 27, 2005
ARBITRATION CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel, Boston
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
October 2005
INTERNATIONAL ASBESTOS CONFERENCE
Mealey Publications
London, England
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
October 6-7, 2005
ASBESTOS LITIGATION IN THE 21ST CENTURY
ALI-ABA
Chicago
Contact: 215-243-1614; 800-CLE-NEWS x1614
November 3-4, 2005
CONFERENCE ON LIFE INSURANCE COMPANY PRODUCTS
ALI-ABA
Washington DC
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
------------------------
February 01-28, 2005
HBA PRESENTS: AUTOMOBILE LITIGATION: DISPUTES AMONG
CONSUMERS, DEALERS, FINANCE COMPANIES AND FLOORPLANNERS
CLEOnline.Com
Contact: 512-778-5665; info@cleonline.com
February 01-28, 2005
CONSTRUCTION DISPUTES: TEXAS RESIDENTIAL CONSTRUCTION DEFECT
LIABILITY
CLEOnline.Com
Contact: 512-778-5665; info@cleonline.com
February 01-28, 2005
HBA PRESENTS: ETHICS IN PERSONAL INJURY
CLEOnline.Com
Contact: 512-778-5665; info@cleonline.com
February 01-28, 2005
IN-HOUSE COUNSEL AND WRONGFUL DISCHARGE CLAIMS:
CONFLICT WITH CONFIDENTIALITY?
CLEOnline.Com
Contact: 512-778-5665; info@cleonline.com
February 01-28, 2005
BAYLOR LAW SCHOOL PRESENTS: 2004 GENERAL PRACTICE INSTITUTE --
FAMILY LAW, DISCIPLINARY SYSTEM, CIVIL LITIGATION, INSURANCE
& CONSUMER LAW UPDATES
CLEOnline.Com
Contact: 512-778-5665; info@cleonline.com
June 27-28, 2005
LITIGATING EMPLOYMENT DISCRIMINATION & SEXUAL HARASSMENT CLAIMS
2005
Practising Law Institute
Contact: 800-260-4PLI; 212-824-5710; info@pli.edu
TORTS PRACTICE: 18TH ANNUAL RECENT DEVELOPMENTS #1
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
TORTS PRACTICE: 18TH ANNUAL RECENT DEVELOPMENTS #2
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
TORTS PRACTICE: 18TH ANNUAL RECENT DEVELOPMENTS #3
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
TORTS PRACTICE: 19TH ANNUAL RECENT DEVELOPMENTS
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
CIVIL LITIGATION PRACTICE: 21ST ANNUAL RECENT DEVELOPMENTS #1
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
CIVIL LITIGATION PRACTICE: 21ST ANNUAL RECENT DEVELOPMENTS #2
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
CIVIL LITIGATION PRACTICE: 21ST ANNUAL RECENT DEVELOPMENTS #3
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
CIVIL LITIGATION PRACTICE: 22ND ANNUAL RECENT DEVELOPMENTS
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
PUNITIVE DAMAGES: MAXIMIZING YOUR CLIENT'S SUCCESS OR MINIMIZING
YOUR CLIENT'S EXPOSURE
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
EFFECTIVE DIRECT AND CROSS EXAMINAITON
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
STRATEGIC TIPS FOR SUCCESSFULLY PROPOUNDING & OPPOSING WRITTEN
DISCOVERY
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
CACI: CALIFORNIA'S NEW CIVIL JURY INSTRUCTIONS
CEB Online
Contact: customer_service@ceb.ucop.edu or 1-800-232-3444
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
OFFICEMAX INC.: Glancy Binkow Lodges Securities Fraud Suit in IL
----------------------------------------------------------------
The law firm of Glancy Binkow & Goldberg LLP initiated a Class
Action lawsuit in the United States District Court for the
Northern District of Illinois on behalf of a class (the "Class")
consisting of all persons or entities who purchased or otherwise
acquired securities of OfficeMax, Inc. ("OfficeMax" or the
"Company")(NYSE:OMX) between January 22, 2004 and January 11,
2005, inclusive (the "Class Period"). OfficeMax was formerly
known as Boise Cascade Corporation.
The Complaint charges OfficeMax and certain of the Company's
executive officers with violations of federal securities laws.
Plaintiff claims defendants' omissions and material
misrepresentations concerning OfficeMax's operations and
financial performance artificially inflated the Company's stock
price, inflicting damages on investors. OfficeMax is a
multinational contract and retail distributor of office
supplies, paper, technology products and office furniture. The
Complaint alleges that during the Class Period defendants
knowingly or recklessly misrepresented and failed to disclose
the following material adverse facts:
(1) for a period of at least two years, the Company
fraudulently booked millions of dollars as legitimate
sales;
(2) the Company was using -- and manipulating its use of -
"vendor allowances" in order to manipulate the
Company's earnings and timing of revenue recognition;
(3) the Company's fourth quarter 2004 results and those
beyond were being eroded by the Company's internal
investigation costs and the halting of the Company's
abusive vendor allowance scheme;
(4) the Company lacked the necessary internal controls to
insure all reported revenue complied with GAAP; and
(5) the Company had entered into a long-term paper supply
contract with Boise Cascade, LLC -- the Company's
timber successor company -- which, unbeknownst to
investors, was not commensurate with the market rate.
On January 12, 2005, OfficeMax issued a press release announcing
the resignation of the Company's chief financial officer and
noting that an ongoing Company investigation "has confirmed the
claims by a vendor to its retail business that certain employees
fabricated supporting documentation for approximately $3.3
million in claims billed to the vendor by OfficeMax during 2003
and 2004."
For more details, contact Lionel Z. Glancy or Michael Goldberg
of Glancy Binkow & Goldberg LLP, Los Angeles by Phone:
(310) 201-9150 or (888) 773-9224 by E-mail: info@glancylaw.com
or visit their Web site: http://www.glancylaw.com.
VEECO INSTRUMENTS: Brian M. Felgoise Files Securities Suit in NY
----------------------------------------------------------------
The Law Offices of Brian M. Felgoise, P.C. initiated a
securities class action on behalf of shareholders who acquired
Veeco Instruments, Inc. (NASDAQ: VECO) securities between April
26, 2004 and February 10, 2005, inclusive (the Class Period).
The case is pending in the United States District Court for the
Eastern District of New York, 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. No class has yet been
certified in the above action.
For more details, contact Brian M. Felgoise, Esq. by Mail: 261
Old York Road, Suite 423, Jenkintown, PA 19046 by Phone:
(215) 886-1900 or by E-mail: FelgoiseLaw@aol.com.
VEECO INSTRUMENTS: Marc S. Henzel Lodges Securities Suit in NY
--------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a class action
lawsuit in the United States District Court for the Eastern
District of New York on behalf of purchasers of Veeco
Instruments, Inc. (NASDAQ: VECO) common stock during the period
between April 26, 2004 and February 10, 2005 (the "Class
Period").
The complaint charges Veeco and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. Veeco designs, manufactures, markets and services a broad
line of equipment primarily used by manufacturers in the data
storage and semiconductors industry.
Prior to the start of the Class Period, on November 3, 2003, the
Company announced the acquisition of Emcore Corporation's
TurboDiscr Metal Organic Chemical Vapor Deposition (MOCVD)
business. Throughout the Class Period, defendants issued
numerous positive statements and filed quarterly reports with
the SEC which described the Company's increasing financial
performance due in part to the success of its TurboDisc
division. In fact, defendants reported that the Company exceeded
its quarterly guidance for the first and second quarters of
2004. These statements were materially false and misleading
because they failed to disclose and misrepresented the following
adverse facts, among others:
(1) that Veeco was materially overstating its financial
results by engaging in improper accounting practices.
As detailed herein, Veeco has admitted that its prior
financial reports are materially false and misleading
as it announced that it is going to restate its results
for the first three quarters of 2004;
(2) that the Company lacked adequate internal controls and
was therefore unable to ascertain its true financial
condition; and
(3) that as a result of the foregoing, the values of the
Company's inventory, accounts payable, revenue and net
income were materially overstated at all relevant
times.
Then, on February 11, 2005, Veeco announced that it would delay
releasing its fourth-quarter and yearly results while it
examines improper accounting at its TurboDisc division.
According to the press release, the Company's investigation is
focusing mainly on the value of inventory, accounts payable and
certain revenue items.
Upon this shocking news, shares of the Company's stock fell
$1.90 per share, or almost 10%, to close at $16.96 per share, on
unusually heavy trading volume.
For more details, contact the Law Offices of 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.
*********
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 2005. All rights reserved. ISSN 1525-2272.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The CAR subscription rate is $575 for six months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
* * * End of Transmission * * *