/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/090505.mbx C L A S S A C T I O N R E P O R T E R Tuesday, May 5, 2009, Vol. 11, No. 87 Headlines AGAPE WORLD: Faces Suit Over Scheme That Defrauded 6T Investors BIOVAIL CORP: Seeks Dismissal of Pa. Wellbutrin Antitrust Suit BLOOMBERG L.P.: Faces Gender Discrimination Suit by 80 Workers CALIFORNIA FAMILY: Faces Reverse Gender Discrimination Lawsuit CLARK HOLDINGS: Contesting Claims in N.J. Suit Over Fuel Charges COLLINS & AIKMAN: July 27 Hearing Set for $10.8M Suit Settlement COSTCO WHOLESALE: NATSO CEO Comments "Hot Fuel" Suit Settlement DIEDRICH COFFEE: April 27 Final Hearing Set for Labor Suit Deal EBAY INC: Sellers File Motion Over Search Terms in Calif. Suit FLEETWOOD ENTERPRISES: Defending FEMA Trailers/Homes Litigation FLEETWOOD ENTERPRISES: Still Faces "Browder" Suit in California GENERAL MOTORS: Pa. Judge Gives Final OK to "Soders" Settlement HARBOR WALK: Faces Va. Litigation Over Defective Chinese Drywall IDEARC INC: Shareholders File Suit Over "Worthless Receivables" LENNAR CORP: Faces Suit in Florida Court over Defective Drywall MASSEY ENERGY: W.Va. Judge To Combine Water Pollution Lawsuits MIDWAY GAMES: Dismissed from Securities Fraud Suit on March 11 PHARMACY INDUSTRY: Representatives Object to AWP Suit Settlement SEQUENOM INC: Investors File Securities Fraud Lawsuit in Calif. SOUTHWEST AIRLINES: Suits Over F.A.A. Violations Remain Pending SUN-TIMES MEDIA: Settlement of Securities Suits Pending Approval TENNESSEE VALLEY: Faces Tenn. Lawsuits Over Kingston Ash Spill WILLING HOLDING: Fees & Damages in "Hosking" Remain Undetermined New Securities Fraud Cases DEUTSCHE BANK: Weiss & Lurie Files Securities Fraud Litigation OPPENHEIMER NEW JERSEY: Stull Stull Announces Stock Suit Filing SEQUENOM INC: Brodsky & Smith Announces Securities Suit Filing SEQUENOM INC: Johnson Bottini Files Securities Fraud Litigation SEQUENOM INC: Stull Stull Announces Securities Fraud Suit Filing ********* AGAPE WORLD: Faces Suit Over Scheme That Defrauded 6T Investors --------------------------------------------------------------- Agape World, Inc. is facing a purported class-action lawsuit over an alleged scheme which federal authorities say took in more than $410 million from as many as 6,000 investors, Long Island Business News reports. Also named in the class-action lawsuit filed against Agape in February were former Nassau policeman Martin Hartmann, 63, of Massapequa, and his son Martin Hartmann, 34, Long Island Business News reported. The class-action suit alleges that "all members of the Agape enterprise had actual knowledge of the illegal activities," according to the Long Island Business News report. BIOVAIL CORP: Seeks Dismissal of Pa. Wellbutrin Antitrust Suit -------------------------------------------------------------- Biovail Corp. and SmithKline Beecham Corp. moved to dismiss a consolidated class-action complaint against them by indirect purchasers of Wellbutrin XL alleging the drug companies illegally monopolized the market for the antidepressant by blocking generic competitors, Law360 reports. The motions, filed on April 30, 2009 in the U.S. District Court for the Eastern District of Pennsylvania, seek to dismiss the complaint in its entirety, according to the Law360 report. BLOOMBERG L.P.: Faces Gender Discrimination Suit by 80 Workers -------------------------------------------------------------- Bloomberg L.P., the financial services company founded by Mayor Michael R. Bloomberg, is facing a purported class-action lawsuit filed on behalf of more than 80 female employees who claim they were discriminated, The Associated Press reports. No trial date has been set for the lawsuit, which does not name the mayor as a defendant. The case was brought by the Equal Employment Opportunity Commission and individual plaintiffs, according to the AP report. CALIFORNIA FAMILY: Faces Reverse Gender Discrimination Lawsuit -------------------------------------------------------------- California Family Fitness is being sued for alleged gender discrimination for operating workout areas and one club dedicated to women, Kelly Johnson of The Sacramento Business Journal reports. A proposed class-action suit, the case heads to mediation this week. The chain operates 15 clubs in Sacramento and Placer counties, according to the Sacramento Business Journal report. CLARK HOLDINGS: Contesting Claims in N.J. Suit Over Fuel Charges ---------------------------------------------------------------- Clark Holdings Inc. continues to contest the allegations and defend itself and each of its subsidiaries named in a complaint -- seeking class-action status – that was filed in the U.S. District Court for the District of New Jersey. On Oct. 28, 2008, the complaint was filed against The Clark Group, Inc., Clark Distribution Systems, Inc., Highway Distribution Systems, Inc., Clark Worldwide Transportation, Inc., and Evergreen Express Lines, Inc. by Multi-Media International, alleging, among other things: (i) common law fraud, aiding and abetting fraud, negligent misrepresentation, conversion and unjust enrichment, (ii) violation of N.J. Stat. Sections 56:8-2, and (iii) breach of good faith and fair dealing, relating to alleged excessive fuel surcharges by the Subsidiaries between Oct. 1, 2002 and Oct. 1, 2008. On Nov. 24, 2008, the plaintiff filed for a voluntary dismissal of the lawsuit in U.S. District Court for the District of New Jersey. As of April 20, 2009, the suit has not been refiled, according to the company's latest Form 10-K filing with the U.S. Securities and Exchange Commission for the fiscal year ended Jan. 3, 2009. On behalf of itself and the putative class, plaintiff seeks to recover the alleged excessive fuel charges, enjoin the alleged improper calculation of fuel charges by defendants and payment of punitive (or treble) damages and attorney's fees. Clark Holdings Inc. -- http://www.glacteam.com-- formerly Global Logistics Acquisition Corporation, is a transportation management and logistics services company whose core business is the shipment of mass market consumer magazines throughout the U.S. and between the United States and other countries. The company was a blank check company formed primarily to effect a merger, capital stock exchange, asset acquisition or other similar business combination with an operating business in the transportation and logistics sector and related industries. It did not engage in any substantive commercial business until it consummated its business combination with The Clark Group, Inc. (Clark) on Feb. 12, 2008. Clark owns Clark Distribution Systems Inc. (CDS) and Highway Distribution Systems Inc., through which the company conducts its domestic operations; and Clark Worldwide Transportation Inc. (CWT), which carries out operations overseas. Holdings is considered to be in the development stage. COLLINS & AIKMAN: July 27 Hearing Set for $10.8M Suit Settlement ---------------------------------------------------------------- The U.S. District Court for the Eastern District of Michigan will hold a fairness hearing on July 27, 2009 at 3:00 p.m. for the proposed $10.8 million settlement in the class-action lawsuit, "In re Collins & Aikman Corporation Securities Litigation, Civil Action No. 2:03-cv-71173-GER." The hearing will be held before the Honorable Gerald E. Rosen in the United States Courthouse, 231 West Lafayette Blvd., Detroit, MI 48226. The settlement covers all persons who purchased the common stock of Collins & Aikman Corp. during the period from Aug. 7, 2001 through Aug. 5, 2002, inclusive. For more details, contact In re Collins & Aikman Securities Litigation Settlement Fund c/o The Garden City Group, Inc., Claims Administrator P.O. Box 9336 Dublin, OH 43017-4236 Phone: 1-866-396-9678 Web site: http://www.gardencitygroup.com - and - Barry A. Weprin, Esq. Milberg LLP One Penn Plaza New York, NY 10119-0165 Phone: (212) 594-5300 COSTCO WHOLESALE: NATSO CEO Comments "Hot Fuel" Suit Settlement --------------------------------------------------------------- A proposed settlement agreement with Costco Wholesale Corp. over "hot fuel" is the latest attempt by trial lawyers to mislead the public, according to Lisa Mullings, CEO of NATSO, a national association representing travel plazas and truckstops. Despite claims that the warehouse club will "fix hot fuel," the only likely results from the 19-page settlement agreement are a payout for plaintiffs' lawyers and an end to the litigation for defendant Costco. The proposed class-action lawsuit claims that when consumers buy gasoline in warm-weather states, they get less than they pay for because warmer fuel expands. According to comments made by trial lawyers and lawyer-funded groups such as Consumer Watchdog, Costco has agreed to "fix hot fuel" in at least 14 states within five years. By that time, they insist, devices installed on Costco fuel pumps will dispense more or less gasoline depending on the temperature. Mullings says news of the settlement came as a surprise because a California government body, the California Energy Commission, concluded just weeks ago that automatic fuel temperature compensation devices would actually increase the retail cost of gas and diesel. In 2007, California's legislature directed the CEC to study the effects of mandating automatic fuel temperature compensation, or ATC. The report, released in March, concluded that "under all the options examined," ATC presented a "net cost to society." In fact, transcripts reveal that one commissioner remarked during the release of the study that "hot fuel" was "a lot of hot air and big dollars." Yet another commissioner remarked, "I say this as a public interest lawyer. [R]econsider what are the most important public interests here. Rome is burning, the Titanic is sinking...this just does not seem like the highest and best use of the state of California…" Mullings said, "The trial lawyers can continue their charade, but the cat's out of the bag on ATC—it would cost consumers more." She continued, "Despite all the hype, the mere existence of this agreement does not require Costco to install these devices. We believe this is simply a ploy by trial attorneys to induce other defendants into settling frivolous litigation." She noted: -- Automatic temperature compensation is not permitted by law. The settlement agreement puts the burden of obtaining legal approval for ATC squarely on the plaintiff’s lawyers, not on Costco. -- The agreement states that as long as Costco believes that the devices cannot be installed under any state's law, they do not have to install them in that state. -- If the settlement agreement directly or indirectly results in higher fuel costs for Costco in any state ("determined solely in the good faith subjective judgment of Costco" in provision 4.8) (emphasis added), Costco is able to unilaterally rescind or cancel the agreement for that state. -- If any other defendant secures "a more favorable settlement," Costco ("in its sole discretion") can modify its agreement to take advantage of the more favorable terms, according to provision 4.7. "The fact that these trial attorneys are willing to enter into this agreement tells me that they are desperate to secure a financial windfall while they still can. It is unconscionable that they will go this far to score a big settlement award," said Mullings. "Costco will not pay one penny in damages to the proposed class of consumers. On the other hand, the agreement clearly requires Costco to pay the plaintiffs' lawyer fees awarded by the court." NATSO is the trade association of America's travel plaza and truckstop industry. Founded in 1960, NATSO represents the industry on legislative and regulatory matters; serves as the official source of information on the diverse travel plaza and truckstop industry; provides education to its members; conducts an annual convention and trade show; and supports efforts to generally improve the business climate in which its members operate. DIEDRICH COFFEE: April 27 Final Hearing Set for Labor Suit Deal --------------------------------------------------------------- The U.S. District Court for the Central District of California has yet to give final approval for the settlement reached in a purported class-action suit against Diedrich Coffee, Inc., alleging that it violated labor laws. On Sept. 21, 2006, a purported class-action complaint entitled, "Jason Reid; Kimberly Cornia, et al. v. Diedrich Coffee, et al.," was filed in the U.S. District Court for the Central District of California by two former employees, who worked in the positions of team member and shift manager. The case involves the issue of whether employees and former employees who worked in California stores during specified time periods were deprived of overtime pay, missed meal and rest breaks. In addition to unpaid overtime, this case seeks to recover waiting time penalties, interest, attorneys' fees and other types of relief on behalf of the current and former employees in the purported class. The company has entered into a settlement with the plaintiffs in the lawsuit. This settlement has been given preliminary approval by the court. A final approval hearing had been set for April 27, 2009. As of March 4, 2009, the company estimates the total amount to settle this claim to be $693,000 and has recorded an accrual for this amount, according to Diedrich Coffee's April 20, 2009 Form 10-Q Filing with the U.S. Securities and Exchange Commission. Diedrich Coffee, Inc. -- http://www.diedrich.com/-- is a specialty coffee roaster, wholesaler and retailer. The company sells brewed, espresso-based and various blended beverages primarily made from its own fresh roasted premium coffee beans, as well as light food items, whole bean coffee and accessories, through company operated and franchised retail locations. EBAY INC: Sellers File Motion Over Search Terms in Calif. Suit -------------------------------------------------------------- eBay, Inc. sellers who filed a putative antitrust class-action lawsuit against the online auction company have claimed the company is blocking access to electronically stored documents by refusing to use certain search terms in querying databases, Law360 reports. The plaintiffs filed a motion on April 29, 2009 in the U.S. District Court for the Northern District of California asking the judge to order eBay to apply the plaintiffs' proposed search terms, according to the Law360 report. FLEETWOOD ENTERPRISES: Defending FEMA Trailers/Homes Litigation --------------------------------------------------------------- Fleetwood Enterprises, Inc. continues to dispute the allegations in all putative class-action complaints filed against manufacturers of travel trailers and manufactured homes supplied to the Federal Emergency Management Agency (FEMA). The units were to be used for emergency living accommodations in the wake of Hurricane Katrina. The complaints generally allege injury due to the presence of formaldehyde in the units. (Class Action Reporter, Nov. 14, 2008) One bellwether trial against Fleetwood has been scheduled to commence on Oct. 26, 2009, according to the company's April 20, 2009 Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended Jan. 25, 2009. Fleetwood Enterprises, Inc. -- http://www.fleetwood.com/-- is engaged in producing both recreational vehicles and manufactured housing. The Company also operates three supply companies that provide components for the recreational vehicle and housing operations, while also generating outside sales. FLEETWOOD ENTERPRISES: Still Faces "Browder" Suit in California --------------------------------------------------------------- Fleetwood Enterprises, Inc. still faces a purported class-action lawsuit titled, "Jesse Browder et al v. Fleetwood Enterprises, Inc.," in the U.S. District Court, Central District of California, Riverside. The case was filed in the U.S. District Court, Central District of California, Riverside, in which plaintiffs allege a variety of claims relating to Fleetwood's method of installing blown-in ceiling insulation in its manufactured homes. The District Court issued an order on Sept. 4, 2008, granting plaintiffs' motion for class certification. The company intends to challenge the class certification and the merits of plaintiffs' claims, according to its April 20, 2009 Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended Jan. 25, 2009. Fleetwood Enterprises, Inc. -- http://www.fleetwood.com/-- is engaged in producing both recreational vehicles and manufactured housing. The Company also operates three supply companies that provide components for the recreational vehicle and housing operations, while also generating outside sales. GENERAL MOTORS: Pa. Judge Gives Final OK to "Soders" Settlement --------------------------------------------------------------- Judge Louis J. Farina of the Court of Common Pleas of Lancaster County gave final approval to a settlement of a nine-year-old class-action lawsuit over a General Motors Corp. marketing surcharge, Tim Mekeel of Lancaster Newspapers reports. The judge gave final approval to the accord on April 28, 2009, which will give $200 rebate certificates to people who bought new GM vehicles from Pennsylvania dealers between 1988 and early 1999, according to the Lancaster Newspapers report. The settlement was in connection to the purported class-action lawsuit, "Soders v. General Motors Corp., No. CI-00-04255," involving GM's marketing programs (Class Action Reporter, Feb. 12, 2009). The case is about GM adding 1% of the Manufacturer's Suggested Retail Price ("MSRP") to the invoice for certain new vehicles it sold to its dealers, as part of their "Marketing Initiative" programs. The lawsuit claims that GM required dealers to use the 1% amount for advertising, and that this violated Pennsylvania law. The lawsuit also claims that dealers passed this amount on to consumers when they purchased vehicles. GM denies any wrongdoing, and states that the 1% was a legal, wholesale price increase to its dealers, and that dealers did not necessarily pass on the 1% amount to each purchaser. The settlement includes a group of people, called a "Class" or "Class Members," who bought a new vehicle at retail in Pennsylvania from a franchised dealer that was made or distributed by GM. The GM dealer must have purchased the new vehicle on or before March 31, 1999, but after (a) Sept. 1, 1998 for Chevrolet or GMC Truck vehicles; (b) July 1, 1989 for Cadillac or Oldsmobile vehicles; (c) July 1, 1990 for Pontiac vehicles; and (d) Aug. 1, 1990 for Buick vehicles. The Class does not include anyone who purchased vehicles under the GM Employee Purchase Plans, GM qualified fleet purchasers, government entities, attorneys of record in this case, lessees, or anyone who previously requested exclusion from the Class. The settlement provides rebates certificates worth up to $200 toward the purchase or lease of a new GM vehicle. Certificates will be valid for three years after the settlement receives final court approval. Up to two certificates can be used toward the purchase of one vehicle. Notices informing Class Members about their legal rights are scheduled to appear in Pennsylvania newspapers and magazines leading up to a hearing on April 28, 2009, when the Court will decide whether to grant final approval to the settlement. The Court has appointed Joseph F. Roda and Michele S. Burkholder, RodaNast, P.C. of Lancaster, Pennsylvania, to represent the Class as "Class Counsel." Those affected by the settlement can send in a claim form to ask for a rebate certificate, object to the settlement, or ask to appear and speak at the fairness hearing. Claim forms must be postmarked no later than June 15, 2009. The deadline to object to the settlement or request to appear and speak at the hearing is March 16, 2009. For more details, contact: "Soders v. General Motors Corp." PO Box 91196 Seattle, WA 98111-9296 Phone: 1-888-866-1738 Web site: http://www.onepercentcase.com HARBOR WALK: Faces Va. Litigation Over Defective Chinese Drywall ---------------------------------------------------------------- Harbor Walk Development, LLC along with several other firms are facing a purported class-action lawsuit in the U.S. District Court for the Eastern District of Virginia over defective drywall, Josh Brown of The Virginian-Pilot reports. Aside from Walk Development, others named as defendants inb the suit are Venture Supply LLC, the distributor of the drywall, and Shandong Taihe Dong-xin Co. Ltd, a Chinese company that has been connected to defective drywall found in homes in Florida, and The Porter-Blaine Corp., a contractor affiliated with Venture Supply. The suit was filed by five Hampton Roads homeowners on May 1, 2009. Two of those homeowners are are residents of a 240-unit Harbor Walk condominium complex built in Norfolk back in 2006, reports The Virginian-Pilot. The plaintiffs alleges that the companies were negligent for selling the drywall and not warning homeowners and customers that it was defective. "The heart of the complaint was that these companies installed drywall into homes that was unfit for the purpose and in fact has now caused these homeowners to have houses they can't live in," Richard Serpe, Esq., the plaintiffs' Norfolk attorney tells The Virginian-Pilot. The suit is seeking damages in excess of $5 million and class- action status, according to The Virginian-Pilot report. For more details, contact: Law Offices of Richard J. Serpe, P.C. 580 East Main Street Suite 310 Norfolk, VA 23510 Phone: 757-233-0009 or 877-544-5323 Fax: 757-233-0455 IDEARC INC: Shareholders File Suit Over "Worthless Receivables" --------------------------------------------------------------- Top executives of Idearc, Inc. are accused in a purported federal class-action lawsuit that they "relaxed" the company's credit policies to juggle the books and report tens of millions of uncollectable receivables as income before the company filed for bankruptcy in March, The Courthouse News Service reports. Shareholders of the company say in their lawsuit -- filed in the U.S. District Court for the Northern District of Texas – that the company had to write off "$47 million in worthless receivables" from the executives' actions, according to the Courthouse News Service report. The plaintiffs -- represented by Thomas E. Bilek of The Bilek Law Firm, L.L.P -- sued CEO Katherine Harless, CFO Andrew Coticchio, CFO Samuel Jones, executive vice president Frank Gatto, for former CEO Scott Klein, reports the Courthouse News Service. For more details, contact: Thomas E. Bilek, Esq. The Bilek Law Firm, L.L.P 808 Travis, Suite 802 Houston, TX 77002 Phone: (713) 227-7720 or (800) 909-4645 Fax: (713) 227-9404 Web site: LENNAR CORP: Faces Suit in Florida Court over Defective Drywall --------------------------------------------------------------- Lennar Corp. defends a putative class-action lawsuit entitled, "Lorena Garcia, et.al. v. Lennar Corporation, et.al., Case No. 09-20739," in the U.S. District Court for the Southern District of Florida. The action was filed on March 23, 2009, in Florida. As of April 17, 2009, Lennar Corporation had not been served with process in connection with this action. The company learned of the action by searching the Court records. Like many other homebuilders, the company learned recently that its subcontractors utilized drywall manufactured in China during the construction of its homes primarily in 2005 and 2006, and the company has now learned that certain drywall manufactured in China contains high levels of sulfur and may emit various sulfur-based gases. The action purports to be a class action on behalf of all owners and residents of homes in the United States, which contain drywall manufactured, sold or distributed by defendants that emits excessive amounts of sulfur gases as well as any individual or entity that paid for or performed repairs of damage caused by the drywall. The named defendants include the company that the plaintiffs claim manufactured in China drywall that allegedly emits sulfur- containing gases at concentrations higher than that present in background air and three companies (including the company that the plaintiffs identify as "the nation's largest distributor of drywall and related building products") that the plaintiffs claim distributed defective drywall in the United States, including Florida. The plaintiffs claim to have bought two homes from the company, and the complaint includes a claim that the presence of defective drywall is a violation of plaintiffs' agreement, and they believe, the contracts of each and every member of the class (although the purported class is not limited to persons who bought homes from the company). The plaintiffs seek compensation "to the full extent required by law" and medical monitoring. The company has engaged in a process of inspecting and identifying homes it delivered during the time period when apparently defective drywall was purchased form China by various of its subcontractors, and has been paying to have the Chinese drywall and aspects of homes affected by it (including heat, ventilation and air conditioning systems) replaced. Independent government organizations have determined that exposure to the gases emitted by the drywall does not present any danger to human health. The company has commenced litigation against the manufacturer and the distributors of the Chinese drywall that was installed in homes delivered by the company and against the subcontractors who purchased that drywall and used it in building those homes. The company has already established reserves for the estimated cost of replacing the drywall in homes it has confirmed contain drywall manufactured in China to the extent such costs are not covered by insurance. To the extent the company incurs additional costs in replacing drywall, Lennar believes these costs will be covered by insurance, according to its Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on April 20, 2009. Based in Miami, Fla., Lennar Corp. -- http://www.lennar.com/-- builds affordable, move-up and retirement homes primarily under the Lennar brand name. Lennar's Financial Services segment provides primarily mortgage financing, title insurance and closing services for both buyers of the company's homes and others. MASSEY ENERGY: W.Va. Judge To Combine Water Pollution Lawsuits -------------------------------------------------------------- Judge Michael Thornsbury of Mingo County Circuit Court in West Virginia will combine hundreds of water pollution lawsuits against a Massey Energy subsidiary into a class-action case, The Associated Press reports. Judge Thornsbury stayed at the Williamson courthouse until almost midnight of April 30, 2009, working with lawyers to reach settlements for other plaintiffs. Residents claim Rawl Sales & Processing pumped 1.4 billion gallons of coal slurry into abandoned mines, contaminating their well supplies, according to the AP report. The plaintiffs' attorney Kevin Thompson, Esq. says while the process seemed chaotic, it streamlined the case and shaved weeks or months off the trial, reports The Associated Press. The Associated Press reported that Mr. Thompson refused to say how many people settled, or for how much. Nor would he comment on what amounts Virginia-based Massey and its insurers had offered his clients. MIDWAY GAMES: Dismissed from Securities Fraud Suit on March 11 ---------------------------------------------------------------- Midway Games, Inc. was dismissed from a consolidated securities fraud class-action suit filed in the U.S. District Court for the Northern District of Illinois on March 11, 2009. Beginning on July 6, 2007, a number of putative securities class-actions were filed against Midway, as well as against these individuals: * Steven M. Allison * James R. Boyle * Miguel Iribarren * Thomas E. Powell, and * David F. Zucker. The lawsuits are essentially identical and purport to bring suit on behalf of those who purchased the Company's publicly traded securities between Aug. 4, 2005, and May 24, 2006. The plaintiffs allege that the defendants made a series of misrepresentations and omissions about Midway's financial well- being and prospects concerning its financial performance, including decisions regarding reductions in work force, the company's need to seek additional capital, and decisions by Sumner Redstone and his related parties with respect to their ownership or trading of the company's common stock, that had the effect of artificially inflating the market price of the company's securities during the Class Period. They also claim that the defendants lacked a reasonable basis for the company's earnings projections, which the plaintiffs alleged were materially false and misleading. The suit seeks to recover damages on behalf of all purchasers of the company's common stock during the Class Period. The actions have all been consolidated, and on Oct. 16, 2007, the Court appointed lead plaintiffs and lead counsel. The lead plaintiffs filed a Consolidated Amended Complaint on Dec. 17, 2007, asserting the same allegations and the same claims. Midway and the individual defendants filed motions to dismiss the Consolidated Amended Complaint in its entirety on Feb. 15, 2008. The plaintiffs responded to these motions on March 20, 2008, and the defendants filed replies on April 8, 2008. On Feb. 20, 2009, Midway filed a suggestion of bankruptcy, informing the Court of its Feb. 12, 2009 bankruptcy petition in the U.S. Bankruptcy Court for the District of Delaware. In response, Plaintiffs filed a notice on March 3, 2009, voluntarily dismissing Midway from the action, without prejudice. The Court dismissed the company from the case on March 11, 2009, terminating the action as to Midway. The action remains pending against the remaining defendants, according to the company's April 6, 2009 Form 10-K filing with the U.S. Securities and Exchange Commission for the fiscal year ended Dec. 31, 2008. The suit is "Joseph Zerger, et al. v. Midway Games Inc., et al., Case No. 07-CV-03797," filed in the U.S. District Court for the Northern District of Illinois, Judge David H. Coar, presiding. Representing the plaintiffs are: Lasky & Rifkind, Ltd. 100 Park Avenue New York, NY, 10017 Phone: 212-907-0800 Fax: 212-684-6083 - and - Lerach Coughlin Stoia Geller Rudman & Robbins LLP 655 West Broadway, Suite 1900 San Diego, CA, 92101 Phone: 619-231-1058 Fax: 619-231-7423 PHARMACY INDUSTRY: Representatives Object to AWP Suit Settlement ---------------------------------------------------------------- Representatives of the pharmacy industry are objecting to recent settlements in average wholesale price (AWP) litigation against drug pricing publishers First DataBank Inc. and Medi-Span, claiming the deal will cost pharmacies $68 million a year in Medicaid reimbursements, Law360 reports. According to the Law360 report, the National Association of Chain Drug Stores and the Food Marketing Institute were among several groups that filed notice on May 1, 2009, objecting to the settlement. SEQUENOM INC: Investors File Securities Fraud Lawsuit in Calif. ---------------------------------------------------------------- A group of investors filed a securities class-action lawsuit in the U.S. District Court for the Southern District of California on behalf of all persons who purchased or otherwise acquired securities of Sequenom, Inc. (NASDAQ: SQNM) between June 4, 2008 and April 29, 2009 against Sequenom, Inc and certain officers and directors over alleged violations of Federal Securities Laws. According to the complaint the plaintiff alleges that Sequenom, Inc and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading statements between June 04, 2008 and April 28, 2009. The Complaint alleges that on April 29, 2009, after the market closed, Sequenom announced that the expected launch of its SEQureDxTM Down syndrome test will be delayed because of employee mishandling of data and results. As a result, in after-market trading, Sequenom stock lost more than two-thirds of its trading value, falling from $14.91 to $4.69. Sequenom, Inc. -- http://www.sequenom.com/-- is a diagnostic testing and genetics analysis company. The Company is focused on providing products, services, diagnostic testing, applications and genetic analysis products that translate the results of genomic science into solutions for biomedical research, translational research, molecular medicine applications, and agricultural, livestock and other areas of research. Its development and commercialization efforts in various diagnostic areas include non-invasive prenatal diagnostics, oncology, infectious diseases and other disorders. The Company is researching, developing and pursuing the commercialization of various non-invasive molecular diagnostic tests for prenatal genetic disorders and diseases, oncology, infectious diseases, and other diseases and disorders. On November 14, 2008, it completed the asset acquisition of the Center for Molecular Medicine, LLC (CMM). On November 17, 2008, the Company acquired Grand Rapids, a center for molecular medicine. SOUTHWEST AIRLINES: Suits Over F.A.A. Violations Remain Pending --------------------------------------------------------------- Two purported class-action lawsuits over alleged violations of Federal Aviation Administration safety regulations remain pending against Southwest Airlines Co. On March 6, 2008, F.A.A. notified Southwest Airlines that it was seeking to fine the airline company approximately $10 million in connection with an incident concerning the company's potential non-compliance with an airworthiness directive. Southwest accrued the proposed fine as an operating expense in the first quarter of 2008. The company has started an "informal conference" with the F.A.A., which is a process through which the parties may explore common ground, or differences, to determine whether the matter will be formally litigated or resolved. In connection with the incident, during the first quarter and early second quarter of 2008, the company was named as a defendant in two putative class action suits on behalf of persons who purchased air travel from the company while the company was allegedly in violation of F.A.A. safety regulations. Claims alleged by the plaintiffs in these two putative class action complaints include breach of contract, breach of warranty, fraud or misrepresentation, unjust enrichment, and negligent and reckless operation of an aircraft. (Class Action Reporter, Aug. 1, 2008) No further updates regarding the class action lawsuits were provided in the company's April 17, 2009 Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended March 31, 2009. Southwest Airlines Co. -- http://www.southwest.com/-- is a passenger airline that provides scheduled air transportation in the U.S. Southwest predominantly serves short-haul routes with high frequencies. It complements this service with more medium to long-haul routes, including transcontinental service. SUN-TIMES MEDIA: Settlement of Securities Suits Pending Approval ---------------------------------------------------------------- The settlement of the securities class-action lawsuits filed against Sun-Times Media Group, Inc., formerly Hollinger Inc., is pending court approval. In 2004, certain stockholders of the company initiated securities class-action claims asserted against it, a number of its former directors and officers, certain affiliated companies, and its auditor, KPMG LLP, in a consolidated class-action case in the U.S. District Court for the Northern District of Illinois entitled, "In re Hollinger International Inc. Securities Litigation, No. 04C-0834," and in similar actions that have been initiated in Saskatchewan, Ontario, and Quebec, Canada. Those actions assert, among other things, that from 1999 to 2003 the defendants breached U.S. federal, state, and/or Canadian law by allegedly making misleading disclosures and omissions regarding certain "non-competition" payments and the payment of allegedly excessive management fees. On July 31, 2007, the company entered into agreements to settle these suits and litigation over its directors and officers insurance coverage. The company's settlement of the securities class action lawsuits will be funded entirely by $30.0 million in proceeds from its insurance policies. The settlement includes no admission of liability by the company or any of the settling defendants and the company continues to deny any such liability or damages. In addition, the company's insurers have deposited $24.5 million in insurance proceeds into an escrow account in return for a release from any other claims for the July 1, 2002 to July 1, 2003 policy period. If the securities class action settlement is approved, there will then be a court proceeding to determine how the $24.5 million in the insurance escrow account should be distributed. The insurance settlement agreement is conditioned upon approval of the class-action settlement. The parties are in the process of seeking these approvals in the appropriate courts in the United States and Canada, according to the company's April 14, 2009 Form 10-K filing with the U.S. Securities and Exchange Commission for fiscal year ended Dec. 31, 2008. Sun-Times Media Group, Inc. -- http://www.thesuntimesgroup.com/ -- publishes, prints and distributes newspapers in the greater Chicago, Illinois metropolitan area and operates various related Internet Websites. The company's revenue for the year ended Dec. 31, 2007, included the Chicago Sun-Times, Post-Tribune, SouthtownStar and other newspapers in the Chicago metropolitan area and associated Websites. In March 2009, the company filed for bankruptcy protection at the U.S. Bankruptcy Court in Delaware. TENNESSEE VALLEY: Faces Tenn. Lawsuits Over Kingston Ash Spill -------------------------------------------------------------- Tennessee Valley Authority (TVA) is face four lawsuits seeking class-action status for individuals allegedly damaged by the 2008 ash spill at TVA's Kingston Fossil Plant located near Kingston, Tennessee. On December 22, 2008, a dike failed at Kingston, allowing approximately five million cubic yards of water and coal fly ash to flow out onto approximately 300 acres, primarily Watts Bar Reservoir and shoreline property owned by the United States and managed by TVA. TVA had originally estimated that 50 acres of property not managed by TVA had been affected by the spill. However, more detailed examinations determined that only eight acres of property not managed by TVA had been directly impacted by the ash. "Mays v. TVA" A landowner in Roane County, Tennessee, filed suit on Jan. 7, 2009, against TVA. The plaintiff is seeking class-action status on behalf of all similarly situated landowners. The complaint alleges that the ash spill constitutes a private nuisance which has interfered with the use and value of the property of the proposed class members, and seeks compensatory damages in excess of $5 million. "Blanchard v. TVA" Nine individual landowners in Roane County, Tennessee, filed suit on Jan. 9, 2009, against TVA. The plaintiffs are seeking class-action status on behalf of all similarly situated persons. The complaint alleges causes of action based in tort - negligence, negligence per se, gross negligence, and trespass, among other things - and inverse condemnation, - and seeks compensatory damages in excess of $5 million. "Giltnane v. TVA" Six individual landowners in Roane County, Tennessee, and one local business filed suit on Jan. 9, 2009. The plaintiffs are seeking class-action status on behalf of all entities (including individuals and businesses) located within a 25-mile radius of Kingston. The complaint alleges, among other things, gross negligence, strict liability, nuisance per se, and violation of various state and federal environmental statutes. The plaintiffs seek, among other forms of relief, compensatory damages, punitive damages, and an injunction requiring TVA to perform immediate medical and environmental testing, to abate the nuisance, and to remediate the environmental damage. "Long v. TVA" Forty-three individuals in Roane County, Tennessee, filed suit on March 17, 2009, against TVA, four TVA employees, and certain TVA contractors. The plaintiffs are seeking class action status on behalf of all entities (including all individuals and businesses) within a 10-mile radius of Kingston. As to TVA, the complaint alleges causes of action based in tort - negligence, gross negligence, recklessness, willful misconduct, wanton misconduct, negligence per se, trespass, nuisance, ultra hazardous activity, misrepresentation/fraud, intentional infliction of emotional distress, and negligent infliction of emotional distress - and also alleges National Environmental Policy Act (NEPA) claims under the Administrative Procedures Act. Plaintiffs seek compensatory and punitive damages, and injunctive relief relating to spill remediation, including an order directing TVA to fund medical monitoring. As to the four TVA employees, the complaint alleges constitutional tort claims in addition to state-law tort claims. WILLING HOLDING: Fees & Damages in "Hosking" Remain Undetermined ---------------------------------------------------------------- The amount of damages and attorney's fees in "Gary Hosking v. New World Mortgage, Inc. and New World Capital Holdings, Inc., Case No. 2007cv02200," has yet to be determined by the U.S. District Court of the Eastern District of New York, according to Willing Holding, Inc.'s April 6, 2009 Form 10-12G filing with the U.S. Securities and Exchange Commission. On July 21, 2008, a default judgment against the company's subsidiary, New World, was entered in the Eastern District of New York in Gary Hosking's case for failure to appear in a class-action lawsuit under the Fair Labor Standards Act to recover unpaid overtime compensation, liquidated damages, allegedly unlawfully withheld wages, statutory penalties, and damages owed to certain loan officers formerly employed by New World. Willing Holding, Inc. was organized in 2005, as a technology company with a focus on the telecommunications industry. Since inception, the company has conducted various consulting and other startup activities in the telecommunications sector but have not yet generated any revenues and only incurred minimal expenses relating to those activities. With the acquisition of its wholly-owned subsidiary, New World, in April 2008, a significant portion of the company's operations has consisted of providing mortgage and e-commerce products and services through its Telemarketing Group and sales organization. New Securities Fraud Cases DEUTSCHE BANK: Weiss & Lurie Files Securities Fraud Litigation -------------------------------------------------------------- The law firm of Weiss & Lurie filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf all persons who acquired the 7.60% Trust Preferred Securities of Deutsche Bank Capital Funding Trust III pursuant or traceable to the materially false and misleading registration statement and prospectus issued in connection with the February 2008 offering of the Securities (the "Offering" or "Class"). The complaint charges Deutsche Bank AG, certain of its subsidiaries, its senior insiders, its auditors and the investment banks that underwrote the Offering with violations of the Securities Act of 1933. This action seeks to recover damages on behalf of all persons who acquired the Securities pursuant or traceable to the Registration Statement issued in connection with the Offering. A request for lead plaintiff status must satisfy certain criteria and be made on or before May 29, 2009. For more information, contact: Joseph H. Weiss, Esq. Weiss & Lurie The French Building 551 Fifth Avenue, Suite 1600 New York City 10176 Phone: (888) 593-4771 or (212) 682-3025 e-mail: infony@weisslurie.com OPPENHEIMER NEW JERSEY: Stull Stull Announces Stock Suit Filing --------------------------------------------------------------- The law firm of Stull, Stull & Brody announced that it has filed a class action complaint in the U.S. District Court for the District of New Jersey against Oppenheimer New Jersey Municipal Fund (NASDAQ: ONJAX) (NASDAQ: ONJBX) (NASDAQ: ONJCX) on behalf of all persons who purchased Class A, Class B and/or Class C shares of the Fund from April 24, 2006 through and including October 21, 2008 pursuant to various Registration Statements and Prospectuses issued by the Fund during the Class Period. The complaint alleges that the Fund, certain of its trustees and officers, and Oppenheimer Funds, Inc., violated the Securities Act of 1933, which prohibits materially false and misleading statements in registration statements and prospectuses of the kind used to sell shares in The Fund. The complaint alleges that the Fund failed to disclose that its use of derivative instruments, known as "inverse floaters," could, and did, effectively force the Fund to sell securities from its portfolio regardless of market conditions. In October 2008, the Fund filed a prospectus supplement alerting investors of the true risks of its investments -- the same risks that existed in 2006, 2007, and throughout 2008. By October 2008, however, those risks had already manifested themselves, dealing substantial losses to investors and causing shares to lose approximately 30% of their net asset value between January 2008 and October 2008. Plaintiffs seek to recover damages on their own behalf and on behalf of a Class. A request for lead plaintiff status must satisfy certain criteria and be made on or before June 23, 2009. For more details, contact: Howard T. Longman, Esq. (tsvi@aol.com) Stull, Stull & Brody 6 East 45th Street New York, NY 10017 Phone: 1-800-337-4983 Fax: 212/490-2022 Web site: http://www.ssbny.com SEQUENOM INC: Brodsky & Smith Announces Securities Suit Filing -------------------------------------------------------------- The Law office of Brodsky & Smith, LLC announces that a class action lawsuit has been filed on behalf of all persons who purchased common stock of Sequenom, Inc. (NASDAQ: SQNM) between June 4, 2008 and April 29, 2009. The class action lawsuit was filed in the United States District Court for the Southern District of California. The Complaint alleges that defendants violated federal securities laws by issuing a series of material misrepresentations to the market, thereby artificially inflating the price of Sequenom. No class has yet been certified in the above action. For more details, contact: Evan J. Smith, Esq. Marc L. Ackerman, Esq. Brodsky & Smith, LLC Two Bala Plaza, Suite 602 Bala Cynwyd, PA 19004 Phone: 877-LEGAL-90 e-mail: clients@brodsky-smith.com SEQUENOM INC: Johnson Bottini Files Securities Fraud Litigation --------------------------------------------------------------- Johnson Bottini, LLP filed a class action lawsuit in United States District Court for the Southern District of California on behalf of all persons who purchased or otherwise acquired securities of Sequenom, Inc. between June 4, 2008 and April 29, 2009. The complaint alleged that on April 29, 2009, after the market closed, Sequenom said the expected launch of its SEQureDx Down syndrome test would be delayed because of employee mishandling of data and results. Consequently, in after-market trading, Sequenom stock lost more than two-thirds of its trading value, falling from $14.91 to $4.69. For more information, contact: Frank A. Bottini, Esq. (frankb@johnsonbottini.com) Johnson Bottini, LLP Phone: 619-230-0063 SEQUENOM INC: Stull Stull Announces Securities Fraud Suit Filing ---------------------------------------------------------------- Stull, Stull & Brody announces that a class action lawsuit on behalf of all persons who purchased the common stock of Sequenom, Inc. (NASDAQ: SQNM) between June 4, 2008 and April 29, 2009 has been filed in the United States District Court for the Southern District of California alleging violations of the Federal securities laws against Sequenom and its senior executive officers. On Wednesday, April 29, 2009, Sequenom shocked the market by announcing that due to employee mishandling of data and studies of its Down syndrome detection devices, the Company's previously announced plans to conduct further and more advanced tests which were to be held in June of this year would be delayed by at least six months. This news caused the price of Sequenom common stock to plunge from its previous closing price of $14.91 to close at $3.69, a loss of $11.22, or more than 75% of its value. To date, at least four research and development employees have been suspended from the Company. Following the April 29, 2009 announcement, analysts following the Company's stock expressed doubts as to whether Sequenom's Down syndrome detection device will ever be released to the market. A request for lead plaintiff status must satisfy certain criteria and be made on or before April 29, 2009. For more details, contact: Howard T. Longman, Esq. (tsvi@aol.com) Stull, Stull & Brody 6 East 45th Street New York, NY 10017 Phone: 1-800-337-4983 Fax: 212/490-2022 Web site: http://www.ssbny.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 research, 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 S. Senorin, Stephanie T. Umacob, Gracele D. Canilao, and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1525-2272. 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