/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/080124.mbx C L A S S A C T I O N R E P O R T E R Thursday, January 24, 2008, Vol. 10, No. 17 Headlines APPLIED SIGNAL: Court Mulls Appeal in Dismissed Securities Suit BATTAT INC: Recalls Construction Sets with Detachable Magnets CALPINE: Automatic Stay Lifted; Hawaii Fund May Pursue Lawsuit COMPUTER SCIENCES: Continues to Face Ark. Suit Over Colossus CROCUS INVESTMENT: Class Certification to be Decided Next Month FEDEX GROUND: Appeals Court Rejects Certification Review Request HELEN OF TROY: Reaches $4.5M Settlement in Tex. Securities Suit INTER-AMERICAN PRODUCTS: Recalls Deli Chef Tri-Bean Salad INTERVOICE-BRITE: 5th Circuit Vacates Class Certification Order ISRAEL ELECTRIC: Residents Sue Over Undelivered Services MOSAIC CO: Fla. Court Considers Appeal in Pollution Litigation NEW ERA CANNING: Recalls Contaminated Canned Vegetables NEW YORK MORTGAGE: Settles Employees Unpaid Overtime Lawsuit NORDSTROM: Recalls Taper and Votive Candles Posing Fire Hazard NORTHFIELD LABORATORIES: Seeks Dismissal of Securities Complaint NORTHWEST AIRLINES: Objects to Karpiuk, et al.'s Claim No. 12285 OKK TRADING: Recalls Toy Racing Cars on Paint's High Lead Level PALM INC: Settles Lawsuit Over Treo 600, 650 Smartphones PHILIPPINES: Reporters' Suit Against First Gentleman Continues RC2 CORP: $30M Thomas & Friends Suit Settlement Gets Initial OK RENAISSANCERE HOLDINGS: $13M Securities Suit Deal Gets Approval SCHOLASTIC CORP: Faces Consolidated N.Y. Securities Fraud Suit SCHOLASTIC CORP: Faces FACTA Violations Lawsuit in Florida SHAW GROUP: Plaintiffs Amend Complaint in N.Y. Securities Suit SHAW GROUP: Fifth Circuit Mulls Appeal in La. Securities Lawsuit SHUFFLE MASTER: Still Faces Consolidated Securities Suit in Nev. New Securities Fraud Cases HOMEBANC CORP: Chitwood Harley Files Securities Suit in Ga. LEAP WIRELESS: Lockridge Grindal Files Securities Fraud Suit ********* APPLIED SIGNAL: Court Mulls Appeal in Dismissed Securities Suit --------------------------------------------------------------- The U.S. District Court for the Northern District of California has heard plaintiffs' appeal against a dismissal of a consolidated securities class action against Applied Signal Technology, Inc. On March 11 and July 19, 2005, purported securities class actions were filed against the company. Later, these suits were consolidated as, "In re Applied Signal Technology Inc. Securities Litigation, Master File No. 4:05-cv-1027 (SBA)." The amended consolidated complaint is brought on behalf of a putative class of persons who purchased the company's company's securities from Aug. 24, 2004 to Feb. 22, 2005. The complaints name the company, its chief executive officer, and its chief financial officer as defendants, and allege that false and misleading statements regarding the company were issued during the class period. On Feb. 8, 2006, the court dismissed the case with prejudice and entered judgment in defendants' favor. Plaintiffs appealed the judgment of dismissal on March 23, 2006, and the appeal was heard on Dec. 6, 2007. The suit is "In Re: Applied Signal Technology, Inc. Securities Litigation, Case No. 05-CV-01027," filed in the U.S. District Court for the Northern District of California under Judge Saundra Brown Armstrong. Representing the plaintiffs are: Robert S. Green, Esq. Green Welling, LLP 595 Market Street, Suite 2750 San Francisco, CA 94105 Phone: 415/477-6700 Fax: 415-477-6710 E-mail: RSG@CLASSCOUNSEL.COM Representing the defendants is: David A. Priebe, Esq. DLA Piper US, LLP 2000 University Avenue East Palo Alto, CA 94303-2248 Phone: 650-833-2000 Fax: 650-833-2001 E-mail: david.priebe@dlapiper.com BATTAT INC: Recalls Construction Sets with Detachable Magnets ------------------------------------------------------------- Battat Magnabild of Plattsburgh, N.Y., in cooperation with the U.S. Consumer Product Safety Commission, is recalling about 125,000 Magnetic Building Systems. The company said the small magnets inside the building pieces can fall out. Magnets found by young children can be swallowed or aspirated. If more than one magnet is swallowed, the magnets can attract each other and cause intestinal perforations or blockages, which can be fatal. CPSC and Battat have received 16 reports of magnets coming out of the long flexible rods, 1-inch rods, and of the corners of square building pieces. No injuries have been reported. This recall involves the 293-piece (item number BB1502H) and the 180-piece (item number BB1431H) Magnabild Magnetic Building System sets. Both sets come in rotating display cases that contain 1-inch and 4-inch rods with magnets, curved 1-inch rods, triangle and square pieces with magnets, square-shaped plastic building pieces, triangles and 5-sided pieces, and metal balls. The pieces come in different colors. All of the plastic building pieces, except the 4-inch flexible rods, have the word "Magnabild" in raised lettering on them. The item number is found on a hang tag attached to the set. The product is designed for children older than three years. The construction sets were made in China and sold at various retailers nationwide and online sellers from 2005 through 2007 for between $30 and $40. Consumers should immediately take the recalled Magnabild Magnetic Building System away from children and contact Battat to receive a pre-paid mailer to return the toy and to receive a free replacement product. For additional information, contact Battat at (800) 247-6144 between 8 a.m. and 4:30 p.m. ET Monday through Friday or visit http://www.battatco.com. To see this recall on CPSC's web site, including pictures of the recalled products, please go to: http://www.cpsc.gov/cpscpub/prerel/prhtml08/08173.html CALPINE: Automatic Stay Lifted; Hawaii Fund May Pursue Lawsuit -------------------------------------------------------------- In a Court-approved stipulation, the Hawaii Structural Ironworkers Pension Trust Fund and the Debtors agree to lift the automatic stay to allow the Fund to prosecute its securities class action currently pending against Calpine (together with affiliates in bankruptcy, the Debtors) in the Superior Court of the state of California, County of Santa Clara, until the entry of a judgment provided that the judgment may only be enforced against the insurance policies applicable to the Fund's claims. The Fund also agrees to release and discharge its right to collect from the Debtors any claims and causes of action relating in any way to the Santa Clara Litigation except to the extent necessary to access applicable insurance proceeds. The Fund's Claim No. 5166 and any other claims filed by the Fund are disallowed and expunged with prejudice. The Fund will not be entitled to receive any distributions from the Debtors on behalf of those Claims. (Calpine Bankruptcy News, Issue No. 78; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). COMPUTER SCIENCES: Continues to Face Ark. Suit Over Colossus ------------------------------------------------------------ Computer Sciences Corp. continues to face a class action in Miller County Circuit Court (Arkansas) that is claiming that defendants conspired to wrongfully use the Colossus software products licensed by the company and the other software vendors to reduce the amount paid to the licensees' insureds for bodily injury claims. The suit, entitled, "Hensley, et al. v. Computer Sciences Corp., et al.," was filed as a putative nationwide class action on Feb. 7, 2005. It was originally filed by plaintiff Georgia Hensley, individually and as a class representative (Class Action Reporter, Oct. 11, 2007). The suit faults the defendants for civil conspiracy, breach of contract, breach of the covenant of good faith and fair dealing, unjust enrichment, and fraud. Plaintiffs sought injunctive and monetary relief of less than $75,000 for each class member, as well as attorney’s fees and costs. The company reported no development in the matter in its Jan. 11, 2008 Form 10-Q Filing with the U.S. Securities and Exchange Commission for the quarter ended Sept. 28, 2007. The suit is "Hensley, et al. v. Computer Sciences Corp., et al., Case No.: CV-2005-0059-3," filed in Miller County Circuit Court (Arkansas), under Judge Kirk Johnson. Representing the plaintiff is: John Goodson, Esq. Keil & Goodson, P.A. 611 Pecan Street Texarkana, AR 71854 Phone: (870)772-4113 Representing defendant State Automobile Insurance Company are: Mark Burgess, Esq. 2301 Moores Lane P.O. Box 6297 Texarkana, Texas 75505-6297 (Bowie Co.) Web site: http://www.cbplaw.com - and - Jason Horton, Esq. Crisp, Boyd, Poff & Burgess, L.L.P. Moores Lane, P.O. Box 6297 Texarkana, Texas 75505-6297 Phone: 903-838-6123 Fax: 903-832-8489 2301 Web site: http://www.cbplaw.com CROCUS INVESTMENT: Class Certification to be Decided Next Month --------------------------------------------------------------- Justice Kenneth Hanssen of the Court of Queen's Bench of Manitoba will decide next month whether a purported $200 million class action by investors against the Crocus Investment Fund will go ahead, CBC News reports. At a recent hearing, Justice Hanssen told both parties that he will decide on Feb. 25, 2008, whether the lawsuit can be certified as a class action. Case Background About 34,000 shareholders invested more than $150 million in the labor-sponsored venture capital fund that collapsed in December 2004. It stopped trading amid allegations its shares weren't properly valued. The fund's securities were frozen in late 2004. It went into receivership in June 2005. A 2005 report by the province's Auditor-General alleged improper accounting and abuses of travel and expense policies. Soon there after, the Crocus Investors Association filed the suit after fund that was created by the Manitoba government failed. The case named as defendants the government of Manitoba, the Manitoba Securities Commission, former auditors PricewaterhouseCoopers LLP, and former investment bankers BMO Nesbitt Burns Inc., Wellington West Capital, Inc, Chubb Insurance Company of Canada. Settlement With Chubb Insurance The judge's announcement puts pressure on attorneys working towards a settlement between the fund's insurance company, and former Crocus officers and directors. It was announced last week that Chubb Insurance has agreed to put $3 million into a fund for shareholders in exchange for dropping officers and directors from the lawsuit. According to a report by Aldo Santin of Winnipeg Free Press, attorney Patrick Riley, who represents former Crocus chief executive Sherman Kreiner and chief financial officer Jane Hawkins, confirmed that a settlement of $3.15 million to be paid by Chubb Insurance has been reached in the case. Mr. Riley pointed out though that the settlement was made with no admission of fault or liability on the part of the directors and officers (Class Action Reporter, Jan. 8, 2008). If the settlement is finalized, that would leave the class action to continue against the other defendants. Bernie Bellan, who heads the Crocus Investors Association, told CBC News that shareholders agreed to have the settlement from Chubb be given to the court-appointed receiver, Russ Holmes of Deloitte & Touche LLP, who is liquidating the Crocus assets. Mr. Bellan explains that the settlement should allow the receiver to begin distributing money it raised through liquidating the fund's investments. In its latest report, Deloitte said it has $58.1 million in cash being held for investors, and is still working to sell more assets. Lead attorney for the investors is: David Klein, Esq. David Klein, Klein Lyons Suite 1100 - 1333 West Broadway Vancouver, B.C. V6H 4C1 Phone: (604) 874-7171 FEDEX GROUND: Appeals Court Rejects Certification Review Request ---------------------------------------------------------------- The U.S. Court of Appeals for the 7th Circuit upheld a ruling by the U.S. District Court in Indiana to grant class certification to a lawsuit that asserted delivery drivers in FedEx Corp.'s FedEx Ground/Home Delivery subsidiary are direct employees and not independent contractors. The three-judge panel rejected FedEx's request to review the nationwide class certification of the drivers' claim for employee benefits under the Employee Retirement Income Security Act (ERISA) and other state claims, said Lynn Rossman Faris, lead counsel for the drivers in their nationwide class action. "This is the latest in a string of major legal setbacks for FedEx," commented Ms. Faris. "We now look forward to the District Court issuing the class certification decisions in the remaining lawsuits. The 7th Circuit decision also means the cases can move forward without the delay an appeal would have created. We are one step closer to justice for the tens of thousands of misclassified FedEx drivers." She noted that the Internal Revenue Service recently ordered FedEx to pay back taxes and penalties of $319 million for a single year, after finding that FedEx misclassified drivers as contractors instead of employers. The total financial liability FedEx faces in the IRS case has been estimated by stock analysts at between $1 billion and $2.5 billion. That does not include what FedEx owes its drivers for expenses, improper deductions from wages and overtime. Lynn Rossman Faris, Esq. is the lead trial lawyer in the original lawsuit against FedEx alleging misclassification of the drivers as a way to shift the burden for paying millions in overhead expenses -- including fuel, insurance and uniforms -- from the company to the drivers, enabling FedEx Ground to compete illegally. FedEx Corp. -- http://www.fedex.com/-- provides a portfolio of transportation, e-commerce and business services through companies that compete collectively, operate independently and manage collaboratively, under the respected FedEx brand. HELEN OF TROY: Reaches $4.5M Settlement in Tex. Securities Suit --------------------------------------------------------------- Helen of Troy, Ltd. reached a tentative $4.5 million settlement of a securities fraud class action filed against in in the U.S. District Court for the Western District of Texas, according to the company's Jan 9, 2008 Form 10-Q Filing with the U.S. Securities and Exchange Commission for the quarter ended Nov. 30, 2007. Class actions were consolidated into one action against the company, Gerald J. Rubin, the company's chairman of the board, president, and chief executive officer, and Thomas J. Benson, the company's chief financial officer, on behalf of purchasers of publicly traded securities of the company. The plaintiffs alleged violations of Sections 10 (b) and 20(a) of the U.S. Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder, on the grounds that the company and the two officers engaged in a scheme to defraud the company's shareholders through the issuance of positive earnings guidance intended to artificially inflate the company's share price so that Mr. Rubin could sell almost 400,000 of the company's common shares at an inflated price. The plaintiffs sought unspecified damages, interest, fees, costs, an accounting of the insider trading proceeds, and injunctive relief, including an accounting of and the imposition of a constructive trust and/or asset freeze on the defendants' insider trading proceeds. The class period stated in the complaint was Oct. 12, 2004 through Oct. 10, 2005. An agreement in principle has been reached to settle the consolidated class action. The proposed settlement remains subject to a number of conditions, including the negotiation of final settlement documents and court approval following notice to class members. Under the proposed settlement, the lawsuit would be dismissed with prejudice in exchange for a cash payment of $4.5 million. The suit is "In Re: Helen of Troy, Ltd., Securities Litigation, Case No. 3:05-cv-00431-DB," filed in the U.S. District Court for the Western District of Texas under Judge David Briones. Representing the plaintiffs are: Ariel Acevedo, Esq. Tower One, 5200 Town Center Circle, #600 Boca Raton, FL 33486 Phone: (561) 361-5000 - and - Daniel R. Malone, Esq. The Malone Law Firm 300 East Main, #1100 El Paso, TX 79901 Phone: (915) 533-5000 Fax: 915/533-5009 Representing the defendants are: Nicholas Even, Esq. Noel M. Hensley, Esq. Haynes Boone, LLP 901 Main St., Ste. 3100 Dallas, TX 75202-3789 Phone: (214) 651-5000 Fax: 214/651-5940 and 214/200-0470 E-mail: nick.even@haynesboone.com - and - H. Christopher Mott, Esq. Krafsur Gordon Mott, PC 4695 North Mesa Street El Paso, TX 79912-6103 Phone: (915) 545-1133 Fax: 915/545-4433 E-mail: cmott@gordonmottpc.com INTER-AMERICAN PRODUCTS: Recalls Deli Chef Tri-Bean Salad --------------------------------------------------------- Inter-American Products, a division of The Kroger Co. (NYSE: KR), announced a voluntary recall on all codes of Deli Chef Tri- Bean Salad sold from store deli counters in some states because the product has the potential to be contaminated with Clostridium botulinum, a bacterium which can cause a potentially life threatening condition called botulism. Consumers should not consume this product even if it does not look or smell spoiled. The Tri-Bean Salad was sold at deli counters in stores in Colorado, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Nebraska, Ohio, New Mexico, Utah, Washington, West Virginia, and Wyoming. The green beans in the Tri-Bean Salad were processed by the New Era Canning Company, which has announced a recall of the beans. No illnesses have been reported. No other salad products are affected by this recall. Customers are encouraged to dispose of the product and should contact the store where the product was purchased to receive a refund. Consumers with questions or concerns may call Inter-American Products at 1-800-697-2448. INTERVOICE-BRITE: 5th Circuit Vacates Class Certification Order --------------------------------------------------------------- The U.S. Court of Appeals for the 5th Circuit vacated a class certification order by the U.S. District Court for the Northern District of Texas in the suit, "David Barrie, et al. v. InterVoice-Brite, Inc., et al., Case No. 3-01CV1071-D." Initially, several related class actions were filed on behalf of purchasers of common stock of InterVoice, Inc. during the period from Oct. 12, 1999 through June 6, 2000. Plaintiffs have filed claims, which were consolidated into one proceeding, under Sections 10(b) and 20(a) of the U.S. Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5 against the company as well as certain named current and former officers and directors of Intervoice on behalf of the alleged class members. In the complaint, Plaintiffs claim that the company and the named current and former officers and directors issued false and misleading statements during the Class Period concerning the financial condition of Intervoice, the results of the merger with Brite Voice Systems, Inc. and the alleged future business projections of Intervoice. Plaintiffs have asserted that these alleged statements resulted in artificially inflated stock prices. The District Court dismissed the Plaintiffs’ complaint because it lacked the degree of specificity and factual support to meet the pleading standards applicable to federal securities litigation. The Plaintiffs’ appealed the dismissal to the U.S. Court of Appeals for the 5th Circuit, which affirmed the dismissal in part and reversed in part. The 5th Circuit remanded a limited number of issues for further proceedings in the District Court. On Sept. 26, 2006, the District Court granted the Plaintiffs’ motion to certify a class of people who purchased Intervoice stock during the Class Period between Oct. 12, 1999 and June 6, 2000. On Nov. 14, 2006, the Fifth Circuit granted the company’s petition to appeal the District Court’s decision to grant Plaintiffs’ motion to certify a class. The briefing on the merits of company’s appeal is now complete, and oral argument occurred on Oct. 1, 2007. The company filed a motion to stay further discovery pending the Fifth Circuit’s decision on the merits of the company's appeal, but the District Court denied the motion. The District Court granted Plaintiffs’ motion for leave to file a second amended compliant. The company has moved to dismiss portions of that amended complaint. On Jan. 8, 2008, the Fifth Circuit vacated the District Court’s class-certification order and remanded the case to the District Court for further consideration in light of the Fifth Circuit’s decision in the case, “Oscar Private Equity Investments v. Allegiance Telecom, Inc.” The suit is "Barrie, et al. v. Intervoice Brite Inc., et al., Case No. 3:01-cv-01071," filed in the U.S. District Court for the Northern District of Texas under Judge Ed Kinkeade. Representing the plaintiffs are: Marc R. Stanley, Esq. Stanley Mandel & Iola 3100 Monticello Ave., Suite 750 Dallas, TX 75205 Phone: 214/443-4301 Fax: 214/443-0358 E-mail: mstanley@smi-law.com - and - Lauren M. Winston, Esq. Lerach Coughlin Stoia Geller Rudman & Robbins 100 Pine St., Suite 2600 San Francisco, CA 94111 Phone: 415/288-4545. Representing the defendants is: Timothy R. McCormick, Esq. Thompson & Knight 1700 Pacific Ave, Suite 3300, Dallas, TX 75201-4693 Phone: 214/969-1103 Fax: 214/880-3253 E-mail: timothy.mccormick@tklaw.com ISRAEL ELECTRIC: Residents Sue Over Undelivered Services -------------------------------------------------------- The Israel National News reported that residents of Gush Etzion are filing a class action against the Israel Electric Company for refusing to upgrade and provide proper maintenance for the electricity infrastructure in the region. Residents claim they have suffered from blackouts and damage to their appliances. They have already hired a lawyer and a meeting is set for next Wednesday in Efrat's Community Center to discuss the matter, the report said. Israel Electric Company is a Government fully-owned company. For more information on the suit call 052 480 0188. MOSAIC CO: Fla. Court Considers Appeal in Pollution Litigation -------------------------------------------------------------- The Florida Second District Court of Appeal has yet to rule on plaintiffs' appeal regarding a dismissal of a class action against The Mosaic Co. over the release of phosphoric acid process water from the Riverview, Florida phosphogypsum management system. In September 2004, prior to the completion of the combination of IMC Global Inc. and the fertilizer businesses of Cargill, Inc., a class action complaint and demand for jury trial was filed against Cargill, Inc. in the Circuit Court of the Thirteenth Judicial Circuit for Hillsborough County, Florida. The complaint, which arises out of the sudden release of phosphoric acid process water from the company's Riverview facility, contains four counts, including statutory strict liability, common law strict liability, common law public nuisance and negligence. The strict liability counts relate to the discharge of pollutants or hazardous substances. Plaintiffs seek class certification and an award of damages, attorneys' fees and costs on behalf of a class of unknown size comprising "all fishermen and those persons engaged in the commercial catch and sale of fish, bait, and related products in the Tampa Bay area who lost income and suffered damages because of the pollution, contamination and discharge of hazardous substances by the defendant." The motion to dismiss the statutory strict liability counts was granted in November 2005; the company's other motions to dismiss the action were denied. Plaintiffs have amended their complaint and the company has filed an additional motion to dismiss which was heard by the Circuit Court in August 2006. The court granted the company's second motion to dismiss the case with prejudice on Jan. 9, 2007. Plaintiffs have appealed the dismissal to the Florida Second District Court of Appeal, according to the company's Jan 9, 2008 Form 10-Q Filing with the U.S. Securities and Exchange Commission for the quarter ended Nov. 30, 2007. The Mosaic Co. -- http://www.mosaicco.com/-- is a producer of phosphate and potash combined, as well as nitrogen and animal feed ingredients. The Company operates its business through four business segments: phosphates, potash, offshore and nitrogen. NEW ERA CANNING: Recalls Contaminated Canned Vegetables ------------------------------------------------------- New Era Canning Company of New Era, Michigan is recalling all cans of green beans and garbanzo beans in #10 cans (large cans containing between 6 and 7 pounds) because they may have been processed under conditions which could have led to contamination by Clostridium botulinum bacterium spores, which can cause life- threatening illness or death. The codes on the affected product begin with the numbers “00249,” or the letters “GREEN” or “GARB”. This recall does not include Italian Green Beans because that is a different product. Clostridium botulinum bacterium spores have the potential for growth that produces a toxin that causes a potentially fatal form of food poisoning - botulism. Symptoms of botulism poisoning in humans can begin from 6 hours to 2 weeks after eating food that contains the toxin. Symptoms may include double vision, blurred vision, drooping eyelids, slurred speech, difficulty swallowing, and muscle weakness that moves progressively down the body, affecting the shoulders first, then descending to the upper arms, lower arms, thighs, and calves. Botulism poisoning also can cause paralysis of the breathing muscles, which can result in death unless assistance with breathing (mechanical ventilation) is provided. Individuals who have these symptoms and who may have recently eaten the green beans or garbanzo beans currently under recall or other food products made with these items should seek immediate medical attention. The issues were uncovered in a FDA inspection of products that were in the company’s possession. NO product has tested positive for the toxin and there have been NO cases of botulism reported from these products. This recall only affects the products in the large #10 cans, the majority of which were potentially sold nationwide to various food service customers. However these products may also have been purchased by consumers at retail stores. The code on the cans may be embossed (stamped into the metal of the can) or printed in ink on one of the metal can ends. Examples of how a code may appear on a can of green beans are: "00249 2BH7FL", "00249 1515 2BH7FL", "GREEN 2BH7FL" or "GREEN 1515 2BH7FL". (These are not necessarily actual can codes). Examples of how a code may appear on a can of garbanzo beans are: "00249 34F7LG", "00249 1515 34F7LG", "GARB 34F7LG" or "GARB 1515 34F7LG". (These are not necessarily actual can codes). New Era Canning, in conjunction with the US Food and Drug Administration and the Michigan Department of Agriculture, is thoroughly evaluating all processes and procedures to determine the cause of the problem. Any food that may be contaminated should be disposed of carefully. Even tiny amounts of toxins ingested, inhaled, or absorbed through the eye or a break in the skin can cause serious illness. Skin contact should be avoided as much as possible, and the hands should be washed immediately after handling the food. Customers who have the product or any foods made with these products should throw them away immediately. Double bag the cans in plastic bags that are tightly closed, then place in a trash receptacle for non-recyclable trash outside of the home. Restaurants and institutions are encouraged to assure that such products are only placed in locked receptacles which are not accessible to the public. Additional instructions for safe disposal can be found at www.cdc.gov/botulism/botulism_faq.htm. Anyone with questions can call FDA at 1-888-SAFEFOOD. The following product labels are affected: -- Bunny brand, Distributed by Bunn Capitol Company, Springfield, IL -- Blue Lake mixed and shortcut green beans (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 6444500193). -- Classic Sysco brand, Distributed by Sysco Corporation, Houston, TX. -- Blue Lake cut green beans, 3 sieve (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans (UPC 7486510779). -- Blue Lake cut green beans, 4 sieve, (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans (UPC 7486510487). -- Garbanzo beans (garbanzo beans, water, salt, calcium chloride, EDTA) in 108.0 oz (6 lb. 12 oz.) cans (UPC 7486510484). -- Mixed & short cut green beans (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 1207310120). -- Fancy garbanzo beans without sulfites (garbanzo beans, water, salt, disodium EDTA) in 6 lb. 14 oz. cans (UPC 1207316120). -- ComSource brand, Distributed by ComSource, Atlanta, GA. -- Blue Lake cut green beans (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 5254952333). -- Blue Lake cut green beans, 3 sieve, (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 5254952321). -- ComSource Medallion Premium Quality brand, distributed by ComSource, Atlanta, GA. -- Fancy Blue Lake cut green beans, 4 sieve, (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 5254952325). -- ComSource Merit Excellence Food Service brand, Distributed by ComSource, Inc, Atlanta, GA. -- Cut Blue Lake green beans, 5 sieve (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 5254952327). -- Fancy Blue Lake cut green beans, 4 sieve, (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 5254952325). -- ComSource Traditional brand, Distributed by ComSource, Atlanta, GA. -- Blue Lake cut green beans, mixed and short cut, (green beans, water, salt) in 101 oz (6 lb. 5 oz.) cans (UPC 5254952359). -- Cut Blue Lake green beans, 4 sieve, (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 5254952427). -- Cut Blue Lake green beans, 5 sieve, (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 5254952429). -- Frosty Acres Restaurant's Pride Preferred brand, Packed for F.A.B., Inc., Alpharetta, GA. -- Fancy Blue Lake cut green beans, 3 sieve (green beans, water, salt), in 101 oz. (6 lb. 5 oz.) cans (UPC 4820067373). -- Cut Blue Lake green beans, 4 sieve (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans (UPC 4820067445). -- Blue Lake cut green beans, 5 sieve (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans (UPC 4820067451). -- Fancy cut Blue Lake green beans (green beans, water, salt), in 101 oz. (6 lb. 5 oz.) cans (UPC 4820067339). -- Fancy cut Blue Lake green beans, 4 sieve (green beans, water, salt), in 101 oz. (6 lb. 5 oz.) cans (UPC 4820067446). -- Mixture of Blue Lake short cut, cut green beans (green beans, water, salt), in 101 oz. (6 lb. 5 oz.) cans (UPC 4820068464). -- Fancy garbanzos "chick pea" (garbanzo beans, water, salt, calcium chloride, disodium EDTA) in 111 oz. (6 lb. 15 oz.) cans (UPC 4820068264). -- GFS brand, Distributed by Gordon Food Service, Grand Rapids, MI -- Fancy Blue Lake cut green beans, 4 sieve (green beans, water, salt) in 6 lb. 5 oz. cans, reorder no. 118737 (UPC 9390111873). -- Cut Blue Lake green beans, mixed sieve, (green beans, water, salt) in 6 lb. 5 oz. cans, reorder no. 273856 (UPC 9390127385). -- goodtaste brand, Distributed by New Era Canning in New Era, MI. -- Cut green beans (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 3683512340). -- Harvest Value brand, distributed by U.S. Food Service, Columbia, MD -- Cut green beans, mixed and short cut, (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans, 173619 (UPC 5810803534). -- Cut green beans (green beans, water, salt) in 101 (6 lb. 5 oz.) cans, 170524 (UPC 5810801047). -- Cut green beans, short cut (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans, 173349 (UPC 5810803538). -- Kitchen brand, Distributed by Potato Products, Detroit, MI. -- 5 sieve- EX.-STD. cut Blue Lake green beans (green beans, water, salt) in 6 lb. 6 oz. cans -- Kitchen Essentials brand, Distributed by Gordon Food Service, Grand Rapids, MI. -- Cut green beans, mixed sieve, (green beans, water, salt) in 6 lb. 6 oz. cans, reorder no. 156337 (UPC 9390115633). -- Monarch brand, Distributed by Reid, Murdoch & Co., Columbia, MD -- Extra Fancy Blue Lake cut green beans, 4 sieve, (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans, 177039 (UPC 5810811196). -- Fancy Blue Lake cut green beans, 3 sieve, (green beans, water, salt) in 101 oz (6 lb 5 oz) cans, 170672 (UPC 5810801040). -- Monarch Premium brand, packed for PYA/Monarch, Inc, Greenville, SC. -- Fancy Blue Lake cut green beans, 3 sieve, (green beans, water, salt) in 6 lb. 5 oz. cans, 173205 (No UPC code). -- Mount Stirling brand, Distributed by Pocahontas Foods USA, Richmond, VA. -- Blue Lake cut green beans, 5 sieve, (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 4156033379). -- Necco brand, Packed by New Era Canning Company, New Era, MI. -- Cut green beans (green beans, water, salt) in 6 lb. 6 oz. cans (UPC 3683513340). -- New Era brand, Distributed by New Era Canning Co, New Era, MI. -- Veri-Green cut green beans (green beans, water, salt, zinc chloride) in 102 oz. (6 lb. 6 oz.) cans (No UPC code). -- Cut green beans (green beans, water, salt) in 108 oz. (6 lb. 12 oz.) cans (UPC 3683511340). -- Cut Blue Lake green beans, no salt added, (green beans, water) in 102 oz. (6 lb. 6 oz.) cans (No UPC code). -- Garbanzo beans (garbanzo beans, water, salt, calcium chloride, EDTA) in 108 oz. (6 lb. 12 oz.) cans (UPC 3683511684). -- Nugget brand, Distributed by Nugget, Atlanta, GA. -- Green beans, 4 sieve, (green beans, water, salt) in 101 oz. (6lb. 5oz.) (UPC 4410540023). -- Cut green beans, 5 sieve (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 4410501930). -- Veri-green cut green beans (green beans, water, salt, zinc chloride) in 6 lb. 12 oz. cans (UPC 4410502101). -- Mixed short cut green beans (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 4410518838). -- Blue Lake cut green beans, 4 sieve, (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans (UPC 4410501989). -- Pocahontas brand, Distributed by Pocahontas Foods USA, Richmond, VA. -- Fancy Blue Lake cut green beans, 4 sieve, (Blue Lake green beans, water, salt), 10282, in 6 lb. 5 oz. cans (UPC 4156010282). -- Fancy long cut green beans (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 4156010325). -- Fancy Blue Lake green beans, 3 sieve, (Blue Lake green beans, water, salt), 10280, in 6 lb. 5 oz. cans (UPC 4156010280). -- Reliance Sysco, Distributed by Sysco Corporation, Houston, TX. -- Mixed cut green beans (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans (UPC 7486512175). -- Blue Lake cut green beans, 4 sieve, (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans. (UPC 7486512172). -- Blue Lake cut green beans, 5 sieve, (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans (UPC 7486512174). -- Sysco brand, Distributed by Sysco Corporation, Houston, TX. -- 5096342 Imperial Blue Lake cut green beans, 3 sieve (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 7486512136). -- 5096359 Imperial Blue Lake cut green beans, 4 sieve (green beans, water, salt) in 6 lb. 5 oz. cans (UPC 7486512137). -- US brand Distributed by U.S. FoodService, Columbia, MD. -- Cut green beans, mixed sieve, (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans, 171132 (UPC 5810801048). -- Fancy Blue Lake cut green beans (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans, 173416 (UPC 5810811195). -- Fancy Blue Lake cut green beans, 3 sieve, (green beans, water, salt) in 101 oz. (6 lb. 5 oz.) cans, 170672 (UPC 5810801040). -- Fancy Blue Lake cut green beans, 4 sieve, (green beans, water, salt) 170232 in 101 oz. (6 lb. 5 oz.) cans, 170672 (UPC 5810801041). -- Cut green beans, 5 Sieve, (green beans, water, salt) in 101 oz (6 lb 5 oz) cans, 170675 (UPC 5810801042). -- USDA, Food and Nutrition Service, Special Nutrition Programs, Alexandria, VA label. -- Cut green beans (green beans, water, salt) in 6 lb. 6 oz. cans (UPC 1500101061). -- Garbanzo beans (garbanzo beans, water, salt, calcium chloride, EDTA) in 6 lb. 12 oz. cans (UPC code 1500101089). Customers with questions may contact New Era Canning at 1-800- 282-9007 Ext. 111. NEW YORK MORTGAGE: Settles Employees Unpaid Overtime Lawsuit ------------------------------------------------------------ New York Mortgage Trust, Inc. (OTC BB: NMTR) announced that an agreement in principle has been reached to settle the previously disclosed overtime class action litigation between the Company and certain employees of the Company's discontinued mortgage lending operation. The terms of the settlement remain subject to court approval. The proposed settlement terms will result in a charge of approximately $1 million to the Company's fourth quarter 2007 results. Steven Mumma, Co-Chief Executive Officer, President and Chief Financial Officer of NYMT commented, "We are very pleased to have reached settlement terms on our discontinued operations litigation. We are now focused on the investment of new capital into Agency MBS and look forward to returning the Company to profitability and restoring the dividend in the near future." New York Mortgage Trust, Inc. is a self-advised real estate investment trust (REIT) engaged in the investment management of mortgage-backed securities (MBS) and high credit quality residential adjustable rate mortgage (ARM) loans. As of March 31, 2007, the Company exited the mortgage lending business. As a REIT, the Company is not subject to federal income tax, provided that it distributes at least 90% of its REIT income to stockholders. NORDSTROM: Recalls Taper and Votive Candles Posing Fire Hazard -------------------------------------------------------------- Nordstrom Inc., of Seattle, Wash., in cooperation with the U.S. Consumer Product Safety Commission, is recalling about 2,500 Nordstrom “At Home” Taper and Votive Candles. The company said the candle's exterior coating can ignite, posing a fire hazard. Nordstrom has received four reports of flames or smoke coming from the candle or the exterior coating. One instance of property damage was reported but no injuries have been reported. This recall involves Nordstrom “At Home” 10-inch taper candles and Nordstrom “At Home” votive candles. The taper candles were sold under style numbers NR-07059G and NR-07059S. The votive candles were sold under style numbers NR-07001G and NR-07001S. The candles came in silver and gold and were sold in a box of six. The style number can be found on a sticker at the bottom of the packaging. These recalled candles were manufactured in Taiwan and were being sold at Nordstrom stores nationwide from September 2007 through December 2007 for about $18 for the taper candles and about $12 for the votive candles. Picture of recalled candles: http://www.cpsc.gov/cpscpub/prerel/prhtml08/08170.jpg Consumers are advised to stop using these candles immediately and return them to any Nordstrom store for a full refund. For additional information, contact Nordstrom at (800) 804-0806, 24 hours per day, visit the company's Web site: http://www.nordstrom.com,or email: contact@nordstrom.com NORTHFIELD LABORATORIES: Seeks Dismissal of Securities Complaint ---------------------------------------------------------------- Northfield Laboratories, Inc. plans to file a motion to dismiss an amended complaint in a consolidated securities fraud class action filed against it in the U.S. District Court for the Northern District of Illinois. Between March 17, 2006 and May 15, 2006, ten separate complaints were filed, each purporting to be on behalf of a class of company's stockholders, against Northfield and Dr. Steven A. Gould, its chief executive officer, and Richard DeWoskin, its former chief executive officer. Those putative class actions have been consolidated in a case pending in the U.S. District Court for the Northern District of Illinois. The consolidated amended class action complaint was filed on Sept. 8, 2006, and alleges, among other things, that during the period March 19, 2001 through March 20, 2006, the named defendants made or caused to be made a series of materially false or misleading statements and omissions about Northfield's elective surgery clinical trial and business prospects in violation of Section 10(b) of the U.S. Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder and Section 20(a) of the Exchange Act. Plaintiffs allege that those allegedly false and misleading statements and omissions caused the purported class to purchase shares of the company's common stock at artificially inflated prices. As relief, the complaint seeks, among other things, a declaration that the action be certified as a proper class action, unspecified compensatory damages (including interest) and payment of costs and expenses (including fees for legal counsel and experts). The putative class action is at an early stage and it is not possible at this time to predict the outcome of any of the matters or their potential effect, if any, on Northfield or the clinical development or future commercialization of PolyHeme. The Company and the individual defendants filed a motion to dismiss the complaint, and on Sept. 25, 2007, the court granted that motion, finding that the plaintiffs failed to state a claim. The court dismissed the complaint without prejudice and the plaintiffs have until Nov. 20, 2007 to file an amended complaint. The Company intends to file a motion to dismiss the new complaint, according to the company's Jan 9, 2008 Form 10-Q Filing with the U.S. Securities and Exchange Commission for the quarter ended Nov. 30, 2007. The suit is "Topaz Realty Corp., et al. v. Northfield Laboratories, Inc., et al., Case No. 06-CV-1493," filed in the U.S. District Court for the Northern District of Illinois under Judge George M. Marovich. Representing the plaintiffs are: Patrick Vincent Dahlstrom, Esq. Pomerantz Haudek Block Grossman & Gross LLP One North LaSalle Street, Suite 2225 Chicago, IL 60602-3908 Phone: (312) 377-1181 E-mail: pdahlstrom@pomlaw.com - and - Anthony F. Fata, Esq. Cafferty Faucher LLP 30 North LaSalle Street, Suite 3200 Chicago, IL 60602 E-mail: afata@caffertyfaucher.com Representing the defendants is: Ronald L. Marmer, Esq. Jenner & Block LLP 330 North Wabash Chicago, IL 60611 Phone: (312) 222-9350 E-mail: rmarmer@jenner.com NORTHWEST AIRLINES: Objects to Karpiuk, et al.'s Claim No. 12285 ---------------------------------------------------------------- Northwest Airlines (together with affiliates in bankruptcy, the Debtors) asked the U.S. Bankruptcy Court for the Southern District of New York to expunge Claim No. 12285 filed by Jennifer Karpiuk, Neil Hastings and Thomas Bahle on behalf of themselves and a purported class of participants in certain pension plans sponsored by the Debtors. The Debtors explain that: -- Ms. Karpiuk, et al., never obtained class certification pursuant to Rule 7023 of the Federal Rules of Bankruptcy Procedure and any attempt to do so now would be untimely; -- the individual allegations of Ms. Karpiuk, et al., fail because, with respect to Mr. Hastings and Ms. Karpiuk, the claim is redundant of a judgment obtained on their behalf in State Court for which a general unsecured claim has already been allowed in the Debtors' bankruptcy cases; and -- the Debtors are not a fiduciary with respect to a certain employees' pension plan, and the sole discretion to invest the stock holdings of Ms. Karpiuk, et al., was vested in an independent trustee and the Claimants themselves. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, relates that Ms. Karpiuk filed a complaint in the United States District Court for the District of Minnesota, on behalf of a purported class of participants in Northwest- sponsored pension plans alleging violations of the Employment Retirement Income Security Act of 1974, by certain members of the Debtors' Board of Directors and certain senior officers. Mr. Hastings filed a substantially similar complaint in the same District Court on November 3, 2005. The Hastings Complaint was consolidated with the Karpiuk Complaint on April 28, 2006. In general, the Consolidated Complaint alleges that the NWA Corp. stock in the Debtors' pension plans should have been "sold" or otherwise disposed of prior to the Debtors' filing for bankruptcy. The Court dismissed the Consolidated Complaint on the basis that the claims were preempted by the Railway Labor Act. The Claimants appealed the matter to the United States Court of Appeals for the Eighth Circuit. The case is currently pending. Mr. Petrick tells Judge Gropper that without class certification, Ms. Karpiuk, et al., can only pursue the Claim on their own behalf. Moreover, Mr. Hastings and Ms. Karpiuk have participated in the distributions on account of the General Unsecured Claim, and can not recover twice for damages for the same claim. (Northwest Airlines Bankruptcy News, Issue Number 84; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). OKK TRADING: Recalls Toy Racing Cars on Paint's High Lead Level --------------------------------------------------------------- OKK Trading Inc., of Commerce, Calif., in cooperation with the U.S. Consumer Product Safety Commission, is recalling 2,000 toy racing cars. The company said surface paint on the toy cars contains excessive levels of lead, violating the federal lead paint standard. No incidents/injuries have been reported so far. This recall involves toy racing cars that are operated with a remote control. The toy racing car comes with four additional tires and one remote control. "Formula 1" is printed on the packaging. The toy racing cars were made in China and sold at tetail dollar and discount stores nationwide from October 2007 through November 2007 for about $1. Consumers are advised to immediately take this car away from children and return it to the store where purchased for a refund. For additional information, contact the company toll-free at (877) 655-8697 between 8:30 a.m. and 5:30 p.m. PT Monday through Friday, or visit http://www.okktrading.com. To see this recall on CPSC's web site, including a picture of the recalled products, please go to: http://www.cpsc.gov/cpscpub/prerel/prhtml08/08172.html PALM INC: Settles Lawsuit Over Treo 600, 650 Smartphones -------------------------------------------------------- Palm, Inc. has agreed to provide a cash rebate to Class Members who experienced two or more repairs or replacements in lieu of repair, who purchase a new Palm smartphone within a defined time period, and who send in a valid claim form. The lawsuit claimed that the Treo 600 and Treo 650 smartphones had certain defects, failed at unacceptable rates, and that Palm made misrepresentations concerning the Treo 600 and Treo 650 smartphones. Palm, Inc. denies all allegations and has asserted many defenses. Palm is entering into this settlement to avoid burdensome and costly litigation. The settlement is not an admission of wrong-doing or an indication that any law was violated. The settlement will provide either: (a) a cash rebate to any United States resident who purchased a Treo 600 or Treo 650 smartphone, experienced two or more repairs or replacements (in lieu of repair) on that device, and purchases a new Palm smartphone within a defined time period; or (b) a right of repair for hardware defects, beyond the expiration of the warranty on your Treo 600 or Treo 650, even if buyers did not experience two or more repairs or replacements. The claim form for a cash rebate must be postmarked on or before July 28, 2008 and received by Palm no more than 21 days thereafter. If the warranty on the buyers' device has already expired by the Effective Date, the right of repair is valid for 120 days from the Effective Date. If the warranty on the device is still in effect on the Effective Date, the right of repair will extend for 120 days beyond the expiration of that warranty. The Court will hold a hearing in this case, “In re Palm Treo 600 and 650 Litigation, Master Case No. C-05-03774-RMW,” on May 2, 2008, at 9:00 a.m. to consider whether to approve the settlement and attorneys’ fees and expenses totaling no more than $1,554,000 and incentive payments to the named Plaintiffs in the aggregate amount of $21,000. Deadline for exclusion in the settlement is April 7, 2008. Objections must be received by April 7, 2008. The Settlement on the Net: http://www.palzasettlement.com For more information, send an e-mail message to Palza.Settlement@palm.com, or write to: Ralph M. Stone, Esq. Co-Lead Counsel Shalov Stone Bonner and Rocco 485 Seventh Avenue, Suite 1000 New York, NY 10018 PHILIPPINES: Reporters' Suit Against First Gentleman Continues -------------------------------------------------------------- Makati Regional Trial Court Branch 143 Judge Zenaida Laguilles denied a second motion to dismiss a class action filed against Jose Miguel “Mike” Arroyo -- husband of Philippine President Gloria Macapagal Arroyo -- by 40 journalists and three media organizations in response to his numerous libel suits, the Pinoy Press reports. On Dec. 28, 2006, dozens of Filipino journalists who are facing libel suits filed by Mr. Arroyo filed a counter civil class action against the presidential spouse at the Makati Regional Trial Court (Class Action Reporter, Dec. 29, 2006). Plaintiffs most of whom are charged by Mr. Arroyo with libel are backed by other journalists, media, and journalists' organizations. Such groups include the Philippine Center for Investigative Journalism and Center for Media Freedom and Responsibility. They are contesting the First Gentleman's claim that he has been maligned as a private citizen, for which he is seeking at least $2,872,275.41 (PHP141 million) in damages. The libel cases were in connection with reports of alleged election fraud and corruption involving Mr. Arroyo. The journalists are accusing Mr. Arroyo of trying to stifle freedom of the press (Class Action Reporter, Nov. 21, 2006). Retaliating against the charges filed against them, the journalists are in turn suing Mr. Arroyo for abuse of power and for seeking to undermine civil liberties. The suit is asking for about $305,561.21 (PHP15 million) in damages for the anxiety, loss of income, and other inconveniences Mr. Arroyo's libel suits have allegedly caused. In January 2007, Mr. Arroyo filed a counterclaim against dozens of Filipino journalists who filed the suit (Class Action Reporter, Jan. 10, 2007). Mr. Arroyo’s first motion to dismiss the case, which was earlier denied by Judge Laguilles, argued that the journalists have no cause of action, since not all of them had been sued by Mr. Arroyo, and that they had paid insufficient docket fees, the report said. Mr. Arroyo filed the second motion to dismiss the class suit on the ground that the journalists were not cooperating with the case as they have filed a motion against his motion to make them answer a questionnaire and to bring to court the articles they wrote about Mr. Arroyo. Judge Laguilles however dismissed the motion by the journalists so they will now have to comply. In a decision signed on 19 December 2007 but released only in January 2008, Judge Laguilles, junked Mr. Arroyo’s motion to dismiss the case on “ground(s) of liberality.” “This is a victory for our side. Now the case is moving,” Harry Roque, lawyer of the journalists in the case, said. Mr. Arroyo's lead counsel is: Ruy Alberto Rondain, Esq. Rondain Mendiola & Pio De Roda Law Office 405 OMM-CITRA Bldg., 39 San Miguel Ave., Pasig City Phone: 633-2421 to 22 Plaintiffs' lawyer is: Harry Roque, Esq. 1904 Antel Corporate Center 121 Valero Street Salcedo Village Makati City Philippines 1227 Phone: +632 8873894 Fax: +632 8873893 RC2 CORP: $30M Thomas & Friends Suit Settlement Gets Initial OK --------------------------------------------------------------- An Illinois court granted preliminary approval to a nationwide class action settlement, resolving the claims of hundreds of thousands of people who bought Thomas & Friends toys allegedly contaminated with lead paint. The settlement, which is valued at over $30 million, also guarantees that RC2 Corporation –- the manufacturer of the popular children’s toys –- will implement a battery of safeguards to ensure that its toys are suitable for children to play with in the future. “In recent months, moms and dads from around the country have learned that they cannot assume that their children’ s toys are safe simply because they came from the shelves of large retailers. This settlement is an important step towards ensuring that this is a problem of the past,” explained Jay Edelson of KamberEdelson, LLC, who, along with his partner Scott A. Kamber, and William Audet of Audet & Partners, LLP, were appointed to represent the class as lead counsel. The settlement was joined by lawyers who filed similar class actions in Florida, California, New Jersey and Tennessee. The Court also appointed Gino L. DiVito of Tabet, DiVito, and Rothstein, LLC as part of the leadership group representing the class. Mr. DiVito formerly served as both a circuit court and appellate judge in Illinois and, prior to that, was a Cook County assistant state's attorney. Under the settlement agreement, eligible class members can receive full cash refunds or replacement toys with an additional “bonus” toy. The settlement also provides for $100,000 to go to an appropriate not-for-profit organization. The parties have established a website at http://www.thomastrainsettlement.comto provide additional details about the settlement. That site will be operational by no later than January 25, 2008. For more information, contact: Jay Edelson KamberEdelson, LLC Phone: 312-589-6370 E-mail: jedelson@kamberedelson.com RENAISSANCERE HOLDINGS: $13M Securities Suit Deal Gets Approval --------------------------------------------------------------- Judge William Pauley III of the U.S. District Court for the Southern District of New York granted final approval to a $13.5 million settlement of a securities fraud class action, "In re RenaissanceRe Holdings Ltd. Securities Litigation, No. 05-Civ.- 6764 (WHP)," BestWire Services reports. The settlement got preliminary approval in September. Final approval was granted at a Jan. 11 fairness hearing. The judge, however, denied a request by class counsel, for $3.37 million in fees, or what amounts to 25% of the settlement. He determined that a $3.37 million fee translates to an hourly rate of approximately $1,640. Also, a 25% attorney’s fee will leave less than $10 million, after reimbursement of expenses, to be divvied up by 52,000 plaintiffs. Judge Pauley ruled that the class counsel should instead take home $1.33 million, a recovery of about 10%. “This award should more than adequately compensate class counsel for its time and effort, for the modest risk it faced in this case, and for the high quality of its representation,Â the judge opined. Case Background Beginning in July 2005, seven putative class actions were filed against the defendants. In December 2005, these actions were consolidated and in February 2006, the plaintiffs filed a consolidated amended complaint, purportedly on behalf of all persons who purchased and/or acquired the publicly traded securities of the company between April 22, 2003 and July 25, 2005. The consolidated amended complaint names as defendants in addition to the company, current and former officers of the company as defendants. It alleges that the company and the other named defendants violated the U.S. federal securities laws by making material misstatements and failing to state material facts about the company's business and financial condition in, among other things, U.S. Securities and Exchange filings and public statements. In March 2006, defendants notified the court of their intention to move to dismiss the consolidated amended complaint. Thus on June 2006, they filed motions to dismiss the consolidated amended complaint. On Oct. 24, 2006, before those motions were ruled upon, counsel for the lead plaintiffs requested permission from the court to move for leave to file a second amended complaint (Class Action Reporter, Nov. 20, 2006). On October 30, 2006, the defendants consented to that request. Once the new complaint is filed, it is expected that the defendants will file motions to dismiss the new complaint. On Feb. 14, 2007, the company executed a memorandum of understanding with plaintiffs’ representatives setting forth an agreement in principle to settle the claims alleged in the Consolidated Amended Complaint, as amended. Last September, U.S. District Judge William Pauley III granted a preliminary approval of the settlement but decided to render a final judgment on whether the deal was “fair, adequate and reasonable” in January (BestWire, Oct. 5, 2007). The suit is "In re RenaissanceRe Holdings Ltd. Securities Litigation, No. 05-Civ.-6764 (WHP)," filed in the U.S. District Court for the Southern District of New York under Judge William H. Pauley, III. Representing the plaintiffs are: Samuel Howard Rudman, Esq. Lerach, Coughlin, Stoia, Geller, Rudman & Robbins, LLP 58 South Service Road, Suite 200 Melville, NY 11747 Phone: 631-367-7100, Fax: 631-367-1173 E-mail: srudman@lerachlaw.com Christopher J. Keller, Esq. Labaton Rudoff & Sucharow, LLP, 100 Park Avenue New York, NY 10017 Phone: (212) 907-0853 Fax: (212) 883-7053 E-mail: ckeller@labaton.com Representing the defendants is: Steven Robert Paradise, Esq. Vinson & Elkins, L.L.P. 666 Fifth Avenue, 26th Floor New York, New York 10103 Phone: (917) 206-8000 Fax: (917) 849-5338 E-mail: sparadise@velaw.com SCHOLASTIC CORP: Faces Consolidated N.Y. Securities Fraud Suit -------------------------------------------------------------- Scholastic Corp. faces a consolidated securities fraud class action in the U.S. District Court for the Southern District of New York. On Aug. 20, 2007, the Alaska Laborers Employers Retirement Fund filed a lawsuit seeking class action status in the U.S. District Court for the Southern District of New York against the Corporation, Richard Robinson, the Corporation’s Chairman, President and Chief Executive Officer, and Mary Winston, the former Chief Financial Officer of the Corporation. A second complaint was filed on Sept. 21, 2007 by Paul Baicu against the same parties. Each complaint claims in substance that the Corporation made false and misleading statements concerning its operations and financial results during the period from March 18, 2005 through March 23, 2006. Both are styled as class actions on behalf of a class of persons who purchased the Corporation’s securities during such time and asserts claims pursuant to Sections 10(b) and 20(a) of the Exchange Act. They seek unspecified compensatory damages, costs and attorneys fees. On Nov. 8, 2007, the suits were consolidated and entitled, “In re Scholastic Corporation Securities Litigation.” The suit is “In re Scholastic Corporation Securities Litigation,” filed in the U.S. District Court for the Southern District of New York. Representing the plaintiffs is: Lerach Coughlin Stoia Geller Rudman & Robbins LLP 58 South Service Road, Suite 200 Melville, NY 11747 Phone: 631.367.7100 Fax: 631.367.1173 SCHOLASTIC CORP: Faces FACTA Violations Lawsuit in Florida ---------------------------------------------------------- Scholastic Corp. faces a purported class action in the U.S. District Court for the Southern District of Florida, alleging violations of the Fair and Accurate Credit Transactions Act (FACTA). On Nov. 13, 2007, Marlene Root filed a lawsuit seeking class action status in the U.S. District Court for the Southern District of Florida against the Corporation. The complaint claims that, in connection with credit card transactions in certain operations, the Company violated the provisions of the Fair and Accurate Credit Transactions Act. The complaint seeks unspecified compensatory, statutory, and punitive damages, as well as injunctive relief, costs and attorney fees. The suit is “Root v. Scholastic Corp., Case No. 0:07-cv-61632- UU,” filed in the U.S. District Court for the Southern District of Florida under Judge Ursula Ungaro. Representing the plaintiffs is; Stephen Richard Astley, Esq. Coughlin Stoia Geller Rudman & Robbins LLP 120 East Palmetto Park Road, Suite 500 Boca Raton, FL 33432 Phone: 561-750-3000 Fax: 561-750-3364 E-mail: sastley@csgrr.com Representing the defendant are: Nicolas Swerdloff, Esq. Hughes Hubbard & Reed 201 S. Biscayne Boulevard, Suite 2500 Miami, FL 33131-4332 Phone: 305-891-1155 Fax: (305) 371-8759 E-mail: swerdlof@hugheshubbard.com - and - Stephanie Reed Traband, Esq. Proskauer Rose 2255 Glades Road, Suite 340 West Boca Raton, FL 33431-7360 Phone: 561-241-7400 Fax: 561-241-7145 E-mail: straband@proskauer.com SHAW GROUP: Plaintiffs Amend Complaint in N.Y. Securities Suit -------------------------------------------------------------- An amended complaint was filed in the class action, "City of Brockton Retirement System v. The Shaw Group Inc, et al., Case No. 06CV8245," which is pending in the U.S. District Court for the Southern District of New York. The purported class action was filed against The Shaw Group, Inc. and certain of its officers on Oct. 10, 2006, alleging violations of federal securities laws. It alleges claims under Sections 10(b) and Rule 10b-5 promulgated thereunder, and 20(a) of the U.S. Securities and Exchange Act of 1934 on behalf of purchasers of the company's common stock during the period from Jan. 6, 2006 to July 9, 2006. It also alleges, among other things, that: -- the company falsely represented that internal controls were adequate and effective in the second quarter of fiscal 2006, and -- in the second quarter of 2006, materially overstated revenues and understated losses. The complaint does not specify the amount of damages sought. To date, the action has not been certified as a class action by the Court. On Sept. 25, 2007, the judge in the matter signed an order appointing as lead plaintiffs The City of Brockton Retirement System and The Norfolk County Retirement System, and appointing as lead counsel for plaintiffs the firm of Labaton Sucharow & Rudoff LLP. On Dec. 3, 2007, plaintiffs served an amended class action complaint, which includes the same substantive allegations and the same two claims as the initial complaint. The suit is "City of Brockton Retirement System v. The Shaw Group, Inc., et al., Case No. 1:06-cv-08245-RCC," filed in the U.S. District Court for the Southern District of New York under Judge Richard C. Casey. Representing the plaintiffs are: Alan Ian Ellman, Esq. Christopher J. Keller, Esq. Andrei V. Rado, Esq. Labaton Sucharow & Rudoff, LLP 100 Park Avenue New York, NY 10017 Phone: 212-907-0877, 212-907-0853 and 212-907-0700 Fax: (212) 883-7077 and (212) 883-7053 E-mail: aellman@labaton.com ckeller@labaton.com SHAW GROUP: Fifth Circuit Mulls Appeal in La. Securities Lawsuit ---------------------------------------------------------------- The U.S. Court of Appeals for the Fifth Circuit has yet to issue a ruling on an appeal in the consolidated securities fraud lawsuit, "Thompson et al. v. Shaw Group, Inc." On July 23, 2004 an investor filed a complaint against The Shaw Group, Inc. claiming the company and three top officers misled the investing public about its finances (Class Action Reporter, Jan. 19, 2007). The class action was filed in the U.S. District Court for the Eastern District of Louisiana and seeks damages for violations of federal securities laws on behalf of all investors who bought Shaw Group common stock from Oct. 19, 2000, through and including June 10, 2004. The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission. The complaint names as defendants: -- Shaw Group; -- J.M. Bernhard Jr., chairman and chief executive officer; -- Tim Barfield, Jr., president, chief operating officer, and director since 2003; and -- Robert L. Belk, chief financial officer and executive vice president. The complaint alleges that, during the class period, Shaw Group issued materially false and misleading information about its financial performance to the investing public. Specifically, the lawsuit alleges that Shaw Group established excessive or "general" contract reserves in conjunction with two acquisitions and then tapped those "cookie jar" reserves to artificially boost its earnings when needed. Defendants also prematurely recognized revenue in connection with its long-term construction contracts, violating its own reported revenue recognition policy. These actions violated Generally Accepted Accounting Practices and resulted in significantly overstated revenues and net income throughout the class period, which in turn inflated Shaw Group's stock price. The company took advantage of the artificially inflated stock price by offering $479 million in shares of Shaw Group common stock to the public, as well as millions of dollars of debt securities. Company insiders also took advantage of the inflated price by selling approximately 1.94 million shares of Shaw Group common stock during the class period, for proceeds of roughly $80 million. After the close of trading on June 10, 2004, the company shocked the investing public by announcing that Shaw Group was the subject of an informal investigation by the SEC into the company's method of accounting for acquisitions. In response to these revelations, the price of Shaw Group's common stock plummeted, falling 18% to $10.05 when trading resumed on June 14, 2004 (following a long weekend). On Aug. 16, 2004, competing motions for the consolidation of all related cases and for the appointment of lead plaintiff and lead counsel were filed with the court. On Aug. 31, 2004, all related cases were consolidated into one class action, "Thompson v. The Shaw Group Inc., No. 04-1685." On Oct. 20, 2004, a hearing on the motions for the appointment of lead plaintiff and lead counsel was held and, after argument, Judge Helen G. Berrigan took the motions under submission and ordered any supplemental briefing be filed by Nov. 3, 2004. Further briefing was filed and on Dec. 13, 2004, Judge Berrigan signed an Order appointing lead plaintiffs and lead counsel. Lead plaintiffs filed their consolidated class action complaint on Feb. 11, 2005 and names as an additional defendant, Richard F. Gill, who was until 2003, the company's executive vice president and chief operating officer. On June 16, 2005, defendants filed their motion to dismiss the consolidated complaint. On Nov. 3, 2005, lead plaintiffs filed an amended class action complaint. On Jan. 13, 2006, defendants filed their motion to dismiss the amended complaint. Oral arguments on the motion to dismiss were held on May 24, 2006 and the motion was denied. On July 18, 2006, the judge granted defendant's motion for an immediate appeal of the motion to dismiss to the fifth circuit court of appeals and that the case be stayed pending the outcome of the appeal. On Sept. 7, 2006, the U.S. Court of Appeals for the Fifth Circuit agreed to hear the appeal of the motion to dismiss. The company's and individual defendants' appeal is fully briefed and was argued on Oct. 2, 2007. The Fifth Circuit Court has taken the appeal under advisement and has not yet rendered a decision. The company reported no development in the matter in its Jan. 9, 2008 Form 10-Q Filing with the U.S. Securities and Exchange Commission for the quarter ended Nov. 30, 2007. The suit is "Thompson et al. v. Shaw Group, Inc., et al., Case No. 04-CV-1685," filed in the U.S. District Court for the Eastern District of Louisiana under Judge Helen G. Berrigan. Representing the plaintiffs are: Peter E. Seidman, Esq. Milberg Weiss Bershad Hynes & Lerach LLP One Pennsylvania Plaza New York, NY 10119-0165 Phone: (212) 594-5300 - and - Lewis Stephen Kahn, Esq. Kahn Gauthier Law Group, LLC 650 Poydras St., Suite 2150 New Orleans, LA 70130 Phone: 504-455-1400 Representing the defendants are: Steven W. Copley, Esq. Gordon, Arata, McCollam, Duplantis & Eagan LLP 201 St. Charles Ave., Suite 4000 New Orleans, LA 70170-4000 Phone: (504) 582-1111 - and - J. J. (Jerry) McKernan, Esq. McKernan Law Firm 8710 Jefferson Hwy. Baton Rouge, LA 70809 Phone: 225-926-1234 SHUFFLE MASTER: Still Faces Consolidated Securities Suit in Nev. ---------------------------------------------------------------- Shuffle Master, Inc. continues to face a consolidated securities fraud class action in the U.S. District Court for the District of Nevada. Initially, several complaints were filed against the company. They are as follows: Stocke Litigation On June 1, 2007, a putative class action complaint for violation of the federal securities laws against the Company and the company's Chief Executive Officer, Mark L. Yoseloff, and Chief Financial Officer, Richard L. Baldwin, was filed in the U.S. District Court for the District of Nevada on behalf of persons who purportedly purchased the company's stock between Dec. 22, 2006, and March 12, 2007. The case is entitled, “Joseph Stocke vs. Shuffle Master, Inc., Mark L. Yoseloff and Richard L. Baldwin.” The company, as well as, Dr. Yoseloff, and Mr. Baldwin, were served with the complaint on June 6, 2007. The complaint asserts claims pursuant to Sections 10(b) and 20(a) of the U.S. Securities Exchange Act of 1934, and Rule 10b 5 promulgated thereunder. These claims allegedly relate to the company's March 12, 2007, announcement that it would restate its Fiscal Fourth Quarter and full year financial results. The complaint seeks compensatory damages in an unstated amount. On or about Aug. 4, 2007, four plaintiffs moved the Court for appointment as lead plaintiff. No decision has yet been made. On or about Sept. 6, 2007, one of those plaintiffs withdrew its application for appointment. Armistead Litigation On June 12, 2007, a second putative class action complaint for violation of the federal securities laws against the Company and Dr. Yoseloff and Mr. Baldwin was filed in the U.S. District Court for the District of Nevada. The case is entitled, “Robert Armistead, Jr. vs. Shuffle Master, Inc., Mark L. Yoseloff and Richard L. Baldwin.” The Company, Dr. Yoseloff and Mr. Baldwin were served with the complaint on June 12, 2007. This lawsuit effectively mirrors the allegations in the Stocke lawsuit filed against these same defendants on June 1, 2007, except that the Armistead complaint was filed on behalf of persons who purchased our stock between March 20, 2006, and March 12, 2007. Tempel Litigation On June 25, 2007, a third putative class action complaint for violation of the federal securities laws against the Company, Dr. Yoseloff and Mr. Baldwin was filed in the U.S. District Court for the District of Nevada. The case is entitled, “Andrew J. Tempel vs. Shuffle Master, Inc., Mark L. Yoseloff and Richard L. Baldwin.” This lawsuit is a “copycat” lawsuit of the Stocke lawsuit filed against these same defendants on June 1, 2007. Consolidation On June 22, 2007, a Joint Stipulation was filed in the U.S. District Court for the District of Nevada providing that all presently filed and any subsequently filed related class actions shall be consolidated and captioned, “In Re Shuffle Master, Inc. Securities Litigation.” The company reported no development in the matter in its Jan. 18, 2008 Form 10-K Filing with the U.S. Securities and Exchange Commission for the fiscal year ended Oct. 31, 2007. The suit is “In Re Shuffle Master, Inc. Securities Litigation, Case No. 07-CV-00715,” filed in the U.S. District Court for the District of Nevada under Judge Kent J. Dawson. Representing the plaintiffs are: Albright, Stoddard, Warnick & Albright 801 South Rancho Drive, Quail Park Suite D-4 Las Vegas, NV, 89106 Phone: 702.384.7111 Berger & Montague PC 1622 Locust Street, Philadelphia, PA, 19103 Phone: 800.424.6690 Fax: 215.875.4604 E-mail: investorprotect@bm.net Glancy Binkow & Goldberg LLP 1801 Ave. of the Stars, Suite 311 Los Angeles, CA, 90067 Phone: (310) 201-915 Fax: (310) 201-916 E-mail: info@glancylaw.com - and - Pomerantz Haudek Block Grossman & Gross LLP 100 Park Avenue, 26th Floor New York, NY 10017-5516 Phone: 212.661.1100 Fax: 212.661.8665 E-mail: info@pomerantzlaw.com New Securities Fraud Cases HOMEBANC CORP: Chitwood Harley Files Securities Suit in Ga. ----------------------------------------------------------- Chitwood Harley Harnes LLP announced it has filed a class action lawsuit on behalf of all persons who purchased the common stock of HomeBanc Corp. (OTC US: HMBN.PK) during the period from September 26, 2005 through August 3, 2007, inclusive. The defendants are Patrick S. Flood, who served as the Company's Chief Executive Officer and Chairman of the Board at all relevant times until his resignation from the Company on January 12, 2007, and Kevin D. Race, who served as the Company's Chief Executive Officer, President, Chief Operating Officer and Chief Financial Officer at all relevant times, and served as a director of the Company at all relevant times. The case is pending in the U.S. District Court for the Northern District of Georgia. A copy of the Complaint will be available at http://www.chitwoodlaw.com. The Complaint alleges that the officers of HomeBanc - Kevin D. Race and Patrick S. Flood - violated the Securities Exchange Act of 1934. Beginning on September 26, 2005, HomeBanc sought to register 2 million shares of 10% Series A Cumulative Redeemable Preferred Stock. On February 2, 2006, HomeBanc sold these preferred shares through its underwriters, raising approximately $50 million. However, HomeBanc failed to disclose in its registration statement that it was planning to sell its adjustable rate loans for cash, and was buying lower-quality, higher-risk, residential mortgage-backed securities. Throughout the Class Period, HomeBanc misrepresented its risk of loss due to interest rate fluctuations. HomeBanc was earning less in interest on its assets than the amount it had to pay in interest on its debts. As a result, HomeBanc had less cash available to meet its business and operating needs. HomeBanc, however, continued to tell the public throughout the Class Period that it had sufficient current cash balances and cash flows from its operations to support its liquidity needs for at least a year or more. Even as late as May 9, 2007, HomeBanc told the public that it had enough cash "to support our liquidity requirements for the foreseeable future." Just three months later, HomeBanc's common and Series A Preferred shares were delisted from the New York Stock Exchange. On August 7, 2007, HomeBanc filed for bankruptcy. Lead plaintiff filing deadline is January 29, 2008. For more information, contact: Chitwood Harley Harnes LLP Meryl W. Edelstein, Esq. E-mail: medelstein@chitwoodlaw.com or Mary Kathryn King, Esq. kking@chitwoodlaw.com Web site: www.chitwoodlaw.com Phone: 1-888-873-3999 or 404-873-3900 LEAP WIRELESS: Lockridge Grindal Files Securities Fraud Suit ------------------------------------------------------------ Lockridge Grindal Nauen P.L.L.P. filed a class action against Leap Wireless International, Inc. and certain of its officers and directors in the United States District Court for the Southern District of California, on behalf of investors who purchased or otherwise acquired Leap common stock from November 10, 2005 through November 8, 2007. The Complaint alleges that during the Class Period, Defendants issued materially false and misleading statements regarding the Company's business and prospects. As a result of Defendants' false statements, Leap stock traded at artificially inflated prices during the Class Period, reaching its all-time high of $99.04 per share on July 25, 2007. In November of 2007 the Company shocked the investment world when it announced that it was restating its financial statements for fiscal years 2004, 2005 and 2006 and for the first and second quarters of 2007 to correct errors in previously reported service revenues, equipment revenues, and operating expenses. When the truth about the Company's financials was finally revealed on November 9, 2007, the price of the Company's publicly traded stock plummeted to close at $36.72, damaging the Plaintiff and the other members of the Class. The Complaint alleges that Defendants orchestrated a fraudulent scheme and course of business that operated as a deceit on purchasers of Leap common stock. According to the Complaint, the scheme: (i) deceived the investing public regarding Leap's prospects and business; (ii) artificially inflated the price of Leap's common stock; (iii) allowed Company insiders to sell their own Leap stock at artificially inflated prices; and (iv) caused Plaintiff and other members of the Class to purchase Leap common stock at artificially inflated prices. Interested parties may move the court no later than January 28, 2008 for lead plaintiff appointment. For more information, contact: Karen H. Riebel, Esq. Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South, Suite 2200 Minneapolis, MN 55401 Phone: (612) 339-6900 E-mail: khriebel@locklaw.com ********* 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 Senorin, Ma. Cristina Canson, and Janice Mendoza, Editors. Copyright 2008. 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. 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