/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
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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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