/raid1/www/Hosts/bankrupt/CAR_Public/090811.mbx
C L A S S A C T I O N R E P O R T E R
Tuesday, August 11, 2009, Vol. 11, No. 157
Headlines
ALLSCRIPTS-MISYS: Faces Securities Fraud Litigation in Illinois
AMERICAN TRAFFIC: Faces Lawsuit Over Fla. City's Traffic Cameras
CITY OF FRESNO: Man Files Calif. Lawsuit Over $40 Towing Fee
CORBIS CORP: Faces Suit Over Unauthorized Publication of Photos
DAVID J. STERN: Fla. Judge Certifies Class in Foreclosure Case
E-TRADE FINANCIAL: Oct. 16 Hearing Set for "Greenberg" Agreement
GENERAL ELECTRIC: Reaches $40M Settlement in N.Y. Workers' Suit
HEWLETT-PACKARD: Faces Ex-Workers' Suit Over Sales Commissions
HOLLYWOOD TANNING: Third Circuit Reverses Ruling in "Nafar" Case
HUTTON, INGRAM: Oct. 1 Hearing to Consider FDCPA Settlement
JEFFERSON COUNTY: Court to Hear Appeal in Occupational Tax Case
METROPOLITAN LIFE: Indiana Judge Dismisses Teachers' Litigation
PETLAND INC: Ariz. Court Nixes Suit Over "Manufactured" Puppies
POMEROY IT: Lawsuit Over Hebron, Desert Mountain Deal Dismissed
PROSHARES ULTRASHORT: Faces Securities Fraud Litigation in N.Y.
RIO TINTO: Court Allows Claims in Bougainville Islanders' Suit
New Securities Fraud Cases
ACCURAY INC: Glancy Binkow Files Securities Fraud Suit in Calif.
CONSECO INC: Izard Nobel LLP Announces Securities Lawsuit Filing
CONSECO INC: Shalov Stone Announces N.Y. Securities Suit Filing
FLOTEK INDUSTRIES: Coughlin Stoia Files Securities Fraud Lawsuit
HURON CONSULTING: Berger & Montague Files Securities Fraud Suit
INTERNATIONAL GAME: Charles H. Johnson Announces Lawsuit Filing
REPROS THERAPEUTICS: Murray Frank Files Securities Fraud Lawsuit
REPROS THERAPEUTICS: Rosen Law Firm Announces Stock Suit Filing
*********
ALLSCRIPTS-MISYS: Faces Securities Fraud Litigation in Illinois
---------------------------------------------------------------
Allscripts-Misys Healthcare Solutions Inc. (Nasdaq: MDRX)
says it has been notified that a purported class action
complaint had been filed in the United States District Court for
the Northern District of Illinois against the Company and
certain of its executive officers.
The complaint alleges that between May 8, 2007, and
February 13, 2008 the Company failed to disclose certain facts
about the Company's business, and on that basis the complaint
asserts violations of federal securities laws.
The Company stated that it believes the allegations made in
the complaint are without merit and that it intends to
vigorously defend against the complaint.
Allscripts-Misys Healthcare Solutions Inc. --
http://www.allscripts.com/-- uses innovation technology to
bring health to healthcare. More than 160,000 physicians, 800
hospitals and nearly 8,000 post-acute and homecare organizations
utilize Allscripts to improve the health of their patients and
their bottom line. The company's award-winning solutions
include electronic health records, electronic prescribing,
revenue cycle management, practice management, document
management, hospital care management, emergency department
information systems and homecare automation. Allscripts is the
brand name of Allscripts-Misys Healthcare Solutions, Inc.
AMERICAN TRAFFIC: Faces Lawsuit Over Fla. City's Traffic Cameras
----------------------------------------------------------------
American Traffic Solutions and the City of Temple Terrace,
Florida face a purported class-action lawsuit over the city's
traffic cameras, MyFox Tampa Bay reports.
David Bulluck and four others filed the class-action suit. In
it, they claim the red light system, which is manufactured by
ATS, goes against Florida law, according to MyFox Tampa Bay.
"It's illegal for the state to do it. It's illegal for the city
to do it," attorney Jack Townsend, Esq., tells MyFox Tampa Bay.
Mr. Bulluck is represented by:
Jack Townsend, Esq.
6408 E Fowler Ave.
Tampa, Florida 33617
Phone: 813-914-7363
E-mail: info@jacktownsend.com
Web site: http://www.jacktownsend.com/
CITY OF FRESNO: Man Files Calif. Lawsuit Over $40 Towing Fee
------------------------------------------------------------
A man who had his car towed after a traffic stop is suing the
City of Fresno, California and Police Chief Jerry Dyer, claiming
a $40 fee associated with getting the vehicle back from the
towing company is illegal, John Ellis of The Fresno Bee reports.
William Solorazano is seeking class-action status for the suit,
and asks that the $40 fee be refunded to everyone who has had a
car towed since the fee was enacted in 2004. That amounts to
about $5.5 million, the suit claims.
Nathan Miller, Esq., who filed the lawsuit on Mr. Solorazano's
behalf, said, "If you are receiving money to recoup losses
[associated with towing vehicles], you need to show that as an
even-keel number in your budget," reports Mr. Ellis.
Instead, the lawsuit claims, the city "is receiving a windfall
from the added revenues in extreme excess of its costs." The
extra money has been used to fund "various" Fresno Police
Department programs.
That violates the state vehicle code, which states any towing
fee only be enough to cover costs incurred, according to the
lawsuit. Because it generates income above that amount, it is a
tax as defined under Proposition 218. As a tax, the suit says,
it has not been properly approved by voters, according to The
Fresno Bee.
Mr. Solorazano's lawsuit says that on an unnamed date, his
vehicle was towed at the request of Fresno police. He had to
pay $175 to a towing company to get his car back. Of that, the
suit says, $40 went to Fresno. That is in addition to a
vehicle-release fee to the city of around $294, Mr. Miller told
The Fresno Bee.
The lawsuit was filed in Fresno County Superior Court and is
docketed as Case No. 09CECG0274, the Honorable Donald S. Black,
presiding. Docket data is available at http://is.gd/2am7mat no
charge.
CORBIS CORP: Faces Suit Over Unauthorized Publication of Photos
---------------------------------------------------------------
Corbis Corporation faces a purported class-action filed by
celebrities who are claiming it sold their photos to newspapers
and advertisers without their consent, Karina Brown at
Courthouse News Service reports.
The suit was filed on Aug. 5, 2009, in the U.S. District Court
for the Central District of California by Anna Maria
Alberghetti, Bonnie Pointer, and comedian Judy Tenuta, and is
captioned Ana Maria Alberghetti, et al. v. Corbis Corporation,
Case No. 09-cv-05735.
Ms. Alberghetti was a child star in the 1950s, then appeared in
movies with Dean Martin and Bing Crosby, and Ms. Pointer was a
member of the disco-era Pointer Sisters, then went on to a
successful solo career. Ms. Tenuta is an accordion-playing
comedienne who encourages fans to convert to her religion,
"Judyism," writes Ms. Brown.
The three women want $5 million in damages, including the
company's profits from the sale of the photos and a permanent
injunction, according to Courthouse News.
A copy of the complaint is available free of charge at:
http://ResearchArchives.com/t/s?4140
The three celebrities are represented by:
Kevin A. Seely, Esq.
Robbins Umeda LLP
600 B Street Suite 1900
San Diego, CA 92101
Phone: 619-525-3990
Fax: 619-525-3991
E-mail: kseely@robbinsumeda.com
DAVID J. STERN: Fla. Judge Certifies Class in Foreclosure Case
--------------------------------------------------------------
Following a two-day hearing last week, Judge Thomas Barkdull of
the 15th Judicial Circuit of Florida granted class-action status
to a lawsuit against an attorney, along with his law firm, who
collected foreclosure-related fees from Wells Fargo mortgage
holders, Susan Spencer-Wendel at MiamiHerald.com reports.
The lawsuit was filed by Loren Banner, an electrician from Palm
Springs, who claims Plantation attorney David J. Stern, Esq.,
charged fees for services he did not perform or that were
excessive after Wells Fargo foreclosed on his property and Mr.
Banner sought to pay what he owed the bank and get his mortgage
reinstated, according to MiamiHerald.com.
With the case certified as a class-action, potentially 2,500
Wells Fargo mortgage holders around Florida who received
mortgage reinstatement letters between Jan. 18, 2003, and Feb.
19, 2009, could qualify to be part of the class. Those letters
set forth money due to Wells Fargo, including various fees,
writes Ms. Spencer-Wendel.
The suit, identified as Case No. 502007CA000815XXXXMB, was filed
in 2007 by West Palm Beach attorney Louis Silber, Esq., on
behalf of Mr. Banner. It claims that Mr. Banner paid too much
to get his mortgage reinstated.
Jeffrey Tew, Esq., a Miami lawyer representing Mr. Stern, told
MiamiHerald.com that he will appeal Judge Barkdull's decision to
the Fourth District Court of Appeal.
Mr. Banner is represented by:
Louis M. Silber, Esq.
Silber Valente & Davis
1806 Old Okeechobee Road
West Palm Beach, FL 33409
Phone: 561-615-6200
Fax: 561-615-6206
Web site: http://www.silberandvalente.com
Mr. Stern is represented by:
Jeffrey Tew, Esq.
Tew Cardenas LLP
Four Seasons Tower, 15th Floor
1441 Brickell Avenue
Miami, Florida 33131-3407
Phone: 305-536-1112
Fax: 305-536-1116
Web site: http://www.tewlaw.com/
On-line docket information is available at http://is.gd/2anlgat
no charge.
E-TRADE FINANCIAL: Oct. 16 Hearing Set for "Greenberg" Agreement
----------------------------------------------------------------
The Superior Court of California for the County of Los Angeles
will hold a fairness hearing on Oct. 16, 2009 for the proposed
$7.5 million settlement in Nikki Greenberg, et al. v. E-Trade
Financial Corp., Case No. BC 360152.
The hearing will be held before Carolyn B. Kuhl of the Superior
Court of California for the County of Los Angeles, in Department
323 of the Los Angeles Superior Court, Central Civil West
Courthouse, located at 600 S. Commonwealth Ave. in Los Angeles.
The class-action suit, challenging the company's practice of
recording customer telephone calls without their knowledge or
consent, was filed on Oct. 11, 2006. It was brought on behalf
of all customers or consumers who allegedly made or received
telephone calls from E*Trade that were recorded without their
knowledge or consent following a telephone call from the
plaintiff to the company's Beverly Hills branch on Aug. 8, 2006,
that was recorded during a brief period when the company's
automated notice system was out of order, (Class Action
Reporter, Dec. 23, 2008).
On Feb. 7, 2008, class certification was granted and the class
defined to consist of:
-- all persons in California who received telephone calls
from E*Trade and whose calls were recorded without
their consent within three years of Oct. 11, 2006, and
-- all persons who made calls from California to the
company's Beverly Hills branch office on Aug. 8, 2006.
For more details, contact:
Greenberg Settlement Administrator
P.O. Box 6659
Portland, OR 97228-6659
Phone: (888) 236-1260
Web site:
https://www.greenbergclassactionsettlement.com/
The Plaintiff Class is represented by:
Paul R. Kiesel, Esq.
Kiesel, Boucher & Larson LLP
8648 Wilshire Boulevard
Beverly Hills, California 90211-2910
Phone: 310-854-4444
Fax: (310) 854-0812
E-mail: info@kbla.com
Web site: http://www.kbla.com
- and -
Neville Johnson, Esq.
Johnson & Johnson LLP
439 North Cannon Drive, Suite 200
Beverly Hills, California 90210
Phone: 310-975-1080
E-mail: njohnson@jjllplaw.com
Web site: http://www.jjllplaw.com/
GENERAL ELECTRIC: Reaches $40M Settlement in N.Y. Workers' Suit
---------------------------------------------------------------
General Electric Co. settled for $40 million a class-action suit
that was filed on behalf of 318,000 current and former employees
who claimed the conglomerate imprudently invested more than two-
thirds of the assets of their 401(k) retirement savings plan in
company stock, Law360 reports.
Judge Gary L. Sharpe of the U.S. District Court for the Northern
District of New York recently approved the settlement, which
would provide over $10 million in cash to former plan
participants and $30 million worth of structural changes to
benefit current employees, according to Law360.
HEWLETT-PACKARD: Faces Ex-Workers' Suit Over Sales Commissions
--------------------------------------------------------------
Hewlett-Packard Co. is facing a purported class-action lawsuit
alleging that it failed to properly pay employee sales
commissions due to faulty software, Justin Scheck at The Wall
Street Journal reports.
The suit was filed in the U.S. District Court for the Northern
District of California (Case No. 09-03596) on Aug. 6, 2009, by
former salespeople Jeffrey Johnson, Jennifer Riese, and Shaun
Simmons. It alleges that a software system at HP called Omega
failed to properly account for sales they made to clients,
writes Mr. Scheck.
The plaintiffs seek class-action status on behalf of all
employees and ex-employees affected by the problems. They claim
that more than 50,000 people may have been underpaid due to
issues with Omega, according to WSJ.
HP said in a statement that the lawsuit "substantially
exaggerates the scope" of the issue, according to Brandon Bailey
at the San Jose Mercury News, adding that the company intends
"to defend this vigorously in court."
The plaintiffs are represented by:
Barry I. Dunn, Esq.
Franklin D. Azar & Associates P.C
14426 East Evans Avenue
Aurora, Colorado 80014
Phone: (303) 757-3300
Fax: (303) 759-5203
E-mail: dunnb@fdazar.com
Web site: http://www.fdazar.com
HOLLYWOOD TANNING: Third Circuit Reverses Ruling in "Nafar" Case
----------------------------------------------------------------
The U.S. Court of Appeals for the Third Circuit overturned a
lower court's decision to certify a consumer fraud class-action
suit against Hollywood Tanning Systems, Inc., Ross Todd at The
Am Law Litigation Daily reports.
The plaintiffs claimed that the company distorted the benefits
of indoor tanning and failed to provide adequate warnings on
exposure to ultraviolet light, according to Mr. Todd.
The suit was first filed in New Jersey Superior Court in
Middlesex County on June 21, 2006. It sought class-action
status, trebled compensatory damages (including a refund of the
fees paid for Hollywood Tans' services), punitive damages,
attorneys' fees and the costs of the suit (Class Action
Reporter, July 27, 2006).
The case was removed to the U.S. District Court for the District
of New Jersey on Aug. 14, 2006, and certified as a class-action
case by Judge Dennis Cavanaugh. It is captioned Hadis Nafar v.
Hollywood Tanning Systems, Inc., Case No. 06-cv-03826.
The class certification was later appealed to the Third Circuit,
whose three-judge panel said it considered four issues on
appeal, including class definition, commonality of claims, and
the adequacy of the class representative. The Third Circuit
concluded that Judge Cavanaugh erred in all four, and thus
remanded the case for reconsideration, reports Mr. Todd.
A copy of the Third Circuit's ruling is available free of charge
at http://ResearchArchives.com/t/s?413e
Ms. Nafar is represented by:
Barry Benjamin Cepelewicz, Esq.
Meiselman, Denlea, Packman, Carton & Eberz, PC
1311 Mamaroneck Avenue
White Plains, NY 10605
Phone: (914) 517-5000
E-mail: bcepelewicz@mdpcelaw.com
Hollywood Tanning is represented by:
Stephen M. Orlofsky
Blank Rome, LLP
301 Carnegie Center, 3rd Floor
Princeton, NJ 08540
Phone: 609-750-2646
E-mail: orlofsky@blankrome.com
HUTTON, INGRAM: Oct. 1 Hearing to Consider FDCPA Settlement
-----------------------------------------------------------
A proposed class action settlement has been tentatively approved
by the U.S. District Court for the Southern District of New York
in Goldstein v. Hutton, Ingram, Yuzek, Gainen, Carroll &
Bertolotti, No. 98 CIV. 1464 (MGC). The Court will hold a final
hearing to approve the settlement on October 1, 2009, at 2:30
p.m., in Manhattan.
The lawsuit sought damages for the practice of Hutton, Ingram,
Yuzek, Gainen, Carroll & Bertolotti, attorneys for various
landlords, for sending out three-day notices using its
letterhead. The lawsuit alleges that this practice is an
unlawful debt collection practice under the Fair Debt Collection
Practices Act, and entitles class members to damages under the
FDCPA.
If, at any time during the from period from February 28, 1997,
through and including February 27, 1998, you received a letter
from "HUTTON, INGRAM, YUZEK, GAINEN, CARROLL & BERTOLOTTI,
Attorneys for Landlord" demanding the payment of back rent, your
rights may be affected by the settlement of this lawsuit.
For further information regarding the settlement and your
rights, including information on how to exclude yourself from
the Settlement Class or object to the terms of the settlement
agreement, please e-mail the class attorney at
huttonclassaction@gmail.com and you will receive full
information by return e-mail.
JEFFERSON COUNTY: Court to Hear Appeal in Occupational Tax Case
---------------------------------------------------------------
The Alabama Supreme Court will hear oral arguments on Aug. 18,
2009, on Jefferson County's appeal of a lower court ruling that
struck down the county's occupational tax, Barnett Wright and
David White at The Birmingham News reports.
Attorneys for the county and taxpayers in the class-action suit
will have 30 minutes each to plead their case at the 1:30 p.m.
hearing, according to The Birmingham News.
The class-action suit charges the county with illegally
collecting occupational tax for seven years after it was
repealed. It was filed in the 10th Judicial District and heard
by Circuit Judge Allwin E. Horn III (Class Action Reporter, May
16, 2007).
The complaint asserts the occupational tax was repealed in a
1999 law that took effect on April 1, 2000. It further argues
that the county has been unlawfully collecting the tax since
2000 (Class Action Reporter, July 12, 2007).
The county is appealing Circuit Judge David Rains' Jan. 12
ruling that the job-tax levy, which generates about 25 percent
of the county's operating revenue, is illegal, reports The
Birmingham News.
The plaintiffs' counsel is:
Samuel M. Hill, Esq.
Hill Turner LLC
2117 Magnolia Avenue, Suite 100
Birmingham, AL 35205
Phone: 205-250-7776
Fax: 205-250-7675
Web site: http://www.hillturner.com
The county's counsel is:
William M. Slaughter, Esq.
Haskell Slaughter Young & Rediker, LLC
1400 Park Place Tower
2001 Park Place North
Birmingham, Alabama 35203
Phone: 205-251-1000
Fax: 205-324-1133
E-mail: wms@hsy.com
Web site: http://www.hsy.com/
METROPOLITAN LIFE: Indiana Judge Dismisses Teachers' Litigation
---------------------------------------------------------------
Judge Joseph Van Bokkelen of the U.S. District Court for the
Northern District of Indiana dismissed a putative class-action
suit brought by a group of Indiana public school teachers
alleging that Metropolitan Life Insurance Co. conspired with a
subsidiary of the Indiana State Teachers Association to rig
retirement options in the insurer's favor, Law360 reports.
On Aug. 4, 2009, the judge granted bids by MetLife and ISTA
Financial Services Corp. to dismiss the suit, which is
captioned, Spears, et al. v. Metropolitan Life Insurance Company
et al., Case No. 07-cv-00088, according to Law360.
The suit was filed on March 22, 2007, by Daniel R. Spears,
Jeffrey Yelton, Katherine Lang, Daniel Massa and Raymond R.
Commers. It named Metropolitan Life Insurance Co., Metlife
Securities, Inc., and ISTA Financial Services Corp. as
defendants.
The lawsuit charges the financial concerns with violations of
the U.S. Securities Exchange Act and the Indiana Consumer
Deceptive Practices Act in the marketing and sale of retirement
plans to Indiana public educators. It defined as a class any
Indiana Public educators during the period Jan. 1, 2003, to the
present (Class Action Reporter, May 15, 2007).
Generally, the suit alleges that defendants used the endorsement
of the Indiana State Teachers Association, and its subsidiary,
ISTA Financial, to sell securities and other investment options
to public educators throughout the state.
The plaintiffs charge that the defendants caused the sale of
securities through misrepresentation and concealment of
pertinent facts. The suit also alleges that the defendants
conducted a pattern of racketeering activity and that the
plaintiffs have suffered from corrupt business influence of the
defendants. The plaintiffs are seeking are seeking relief, not
only on their behalf, but also on behalf of all Indiana public
school educators who where duped into purchasing securities and
other investments by the defendants. They seek to recover
damages on behalf of all Indiana public educators who invested
in retirement investments offered by the defendants during the
class period.
Representing the plaintiffs are:
Robert E. Stochel, Esq.
Hoffman and Stochel
One Professional Center, Suite 306
Crown Point, IN 46307
Phone: 219-662-0165
Fax: 219-662-2151
E-mail: res@reslaw.org
- and -
Glenn S. Vician, Esq.
Bowman Heintz Boscia & Vician PC
8605 Broadway
Merrillville, IN 46410
Phone: 219-769-6671
Fax: 219-738-3044
E-mail: glennsvician2@bhbvonline.com
Representing the defendants are:
Brian E. Casey, Esq.
Barnes & Thornburg LLP
600 1st Source Bank Center
100 N Michigan Street
South Bend, IN 46601-1632
Phone: 574-237-1285
Fax: 574-237-1125
E-mail: brian.casey@btlaw.com
- and -
Linton J. Childs, Esq.
Sidley Austin LLP
One S. Dearborn Street
Chicago, IL 60603
Phone: 312-853-7000
Fax: 312-853-7036
Web site: lchilds@sidley.com
PETLAND INC: Ariz. Court Nixes Suit Over "Manufactured" Puppies
---------------------------------------------------------------
The U.S. District Court for the District of Arizona dismissed on
Aug. 7, 2009, the purported class-action lawsuit against
Petland, Inc., and Hunte Corp. that accuses them of operating
"puppy mills," Tim Tresslar at The Springfield News Sun reports.
The suit was filed in the U.S. District Court for the District
of Arizona on March 16, 2009, by pet owners JoDell Martinelli,
Stephanie Booth, Melia Perry, Abbigail King, Nicole Kersanty and
Ruth Ross (Class Action Reporter, July 1, 2009). The Humane
Society of the United States and the pet owners who purchased
their animals from Petland allege that the company conspired to
sell sick puppies bred in filthy conditions, according to The
Joplin Globe report.
The suit is captioned Martinelli, et al. v. Petland, Inc., et
al., Case No. 09-cv-00529, and seeks class-action status. It
challenges the companies' conduct under federal racketeering
statutes and consumer-protection laws in 20 states.
In addition, the suit accuses Hunte of selling to Petland
puppies that were "whelped at puppy mills."
Representing the plaintiffs are:
Donald Andrew St. John, Esq.
Hagens Berman Sobol Shapiro LLP
2425 E. Camelback Rd., Ste 650
Phoenix, AZ 85016
Phone: 602-840-5900
Fax: 602-840-3012
E-mail: andy@hbsslaw.com
- and -
Aaron D. Green, Esq.
Humane Society of the United States
2100 L St. NW
Washington, DC 20037
Phone: 202-676-2334
Fax: 202-778-6132
E-mail: agreen@hsus.org
Representing the defendants are:
Peter D. Baird, Esq.
Lewis & Roca LLP
40 N. Central Ave.
Phoenix, AZ 85004
Phone: 602-262-5364
Fax: 602-734-3861
E-mail: pbaird@lrlaw.com
- and -
Byron Jansen Walker, Esq.
Rose Law Firm
120 E. 4th St.
Little Rock, AR 72201
Phone: 501-375-9131
Fax: 501-375-1309
E-mail: bwalker@roselawfirm.com
POMEROY IT: Lawsuit Over Hebron, Desert Mountain Deal Dismissed
---------------------------------------------------------------
Pomeroy IT Solutions (Nasdaq: PMRY) announced that the
purported class action lawsuit that was filed on May 29, 2009,
in the Court of Chancery of the State of Delaware was dismissed
by an Order of Dismissal entered in the case in response to
plaintiff's voluntary motion for dismissal of the lawsuit.
The defendants in this lawsuit were the Company, its six
independent directors, David B. Pomeroy, II, a director of the
Company and its largest stockholder, and Hebron LLC and Desert
Mountain Acquisition Co., which are companies that are
controlled by Mr. Pomeroy.
The complaint, which was amended on July 7, 2009, alleged,
among other things, that the Company's directors were in breach
of their fiduciary duties to stockholders in connection with the
Company's entry into an agreement and plan of merger with Hebron
LLC, Desert Mountain Acquisition Co., and, with respect to
certain sections of the merger agreement only, David B. Pomeroy,
II, on May 19, 2009, as amended on June 9, 2009, and June 20,
2009.
Pomeroy IT Solutions, Inc. -- http://www.pomeroy.com-- is
a leading provider of IT infrastructure solutions focused on
enterprise, network and end-user technologies. Leveraging its
core competencies in IT Outsourcing and Professional Services,
Pomeroy delivers consulting, deployment, operational, staffing
and product sourcing solutions through the disciplines of Six-
Sigma, program and project management, and industry best
practices. Pomeroy's consultative approach and adaptive
methodology enables Fortune 2000 corporations, government
entities, and mid-market clients to realize their business goals
and objectives by leveraging information technology to simplify
complexities, increase productivity, reduce costs, and improve
profitability.
PROSHARES ULTRASHORT: Faces Securities Fraud Litigation in N.Y.
---------------------------------------------------------------
A class-action lawsuit was filed in the U.S. District Court for
the Southern District of New York against ProShares, regarding
one of its inverse leveraged exchange-traded funds, Money
Management Executive reports.
On Aug. 5, 2009, Labaton Sucharow LLP filed a class-action suit
in New York, on behalf of all persons who purchased or otherwise
acquired shares in the ProShares UltraShort Real Estate fund
(NYSE: SRS), an exchange-traded fund offered by ProShares Trust,
pursuant or traceable to ProShares' false and misleading
Registration Statement, Prospectuses, and Statements of
Additional Information issued in connection with the SRS Fund's
shares. The Class is seeking to pursue remedies under Sections
11 and 15 of the Securities Act of 1933 (Class Action Reporter,
Aug. 10, 2009).
The complaint names ProShares; ProShare Advisors LLC, SEI
Investments Distribution Co., Michael L. Sapir, Louis M.
Mayberg, Russell S. Reynolds, III, Michael Wachs, and Simon D.
Collier, as defendants. ProShares sells its Ultra and
UltraShort ETFs as "simple" directional plays. As marketed by
ProShares, Ultra ETFs are designed to go up when markets go up;
UltraShort ETFs are designed to go up when markets go down. The
SRS Fund is one of ProShares' UltraShort ETFs. The SRS Fund
seeks investment results that correspond to twice the inverse (-
200%) daily performance of the Dow Jones U.S. Real Estate Index
(DJREI), which measures the performance of the real estate
sector of the U.S. equity market. Accordingly, the SRS Fund is
supposed to deliver double the inverse return of the DJREI,
which fell approximately 39.2 percent from January 2, 2008
through December 17, 2008, ostensibly creating a profit for
investors who anticipated a decline in the U.S. real estate
market. In other words, the SRS Fund should have appreciated by
78.4 percent during this period. However, the SRS Fund actually
fell approximately 48.2 percent during this period - the
antithesis of a directional play.
The complaint alleges the defendants violated the Securities Act
by failing to disclose that the SRS Fund is altogether defective
as a directional investment play. The defendants failed to
disclose the following risks in the Registration Statement:
-- inverse correlation between the SRS Fund and the DJREI
over time would only happen in the rarest of
circumstances, and inadvertently if at all;
-- the extent to which performance of the SRS Fund would
inevitably diverge from the performance of the DJREI
-- i.e., the probability, if not certainty, of
spectacular tracking error;
-- the severe consequences of high market volatility on
the SRS Fund's investment objective and performance;
-- the severe consequences of inherent path dependency in
periods of high market volatility on the SRS Fund's
performance;
-- the role the SRS Fund plays in increasing market
volatility, particularly in the last hour of trading;
-- the consequences of the SRS Fund's daily hedge
adjustment always going in the same direction as the
movement of the underlying index, notwithstanding that
it is an inverse leveraged ETF;
-- the SRS Fund causes dislocations in the stock market;
-- the SRS Fund offers a seemingly straightforward way to
obtain desired exposure, but such exposure is not
attainable through the SRS Fund.
A request for lead plaintiff status must satisfy certain
criteria and be made on or before Oct. 5, 2009.
For more details, contact:
Stefanie J. Sundel, Esq.
Labaton Sucharow LLP
140 Broadway
New York, NY 10005
Phone: 800-321-0476 or (212) 907-0700
E-mail: ssundel@labaton.com
Web site: http://www.labaton.com
RIO TINTO: Court Allows Claims in Bougainville Islanders' Suit
--------------------------------------------------------------
The U.S. District Court for the Central District of California
has ruled in a purported class-action lawsuit filed against Rio
Tinto, in which islanders of Bougainville are seeking massive
damages for what they claim were human rights abuses stemming
from operations at the Panguna copper mine, The Sydney Morning
Herald reports.
The court ruled this month that three of the claims -- war
crimes, crimes against humanity and racial discrimination,
allegedly committed by the company in the 1980s and 1990s --
should be allowed to proceed under a U.S. law that permits
foreigners to bring actions in U.S. courts on big international
crimes, according to the Australian newspaper report.
After years of litigation, the court ruled it was not a pre-
requisite for the plaintiffs, a group of Bougainville Islanders,
to exhaust their legal rights in Papua New Guinea. It said the
alleged crimes were of such "universal concern" that the U.S.
would hear them under the Alien Tort Claims Act, the newspaper
reported.
Case Background
The suit claims that Rio Tinto conspired with the government of
Papua New Guinea to savagely quell civil resistance to an
environmentally devastating mining operation, actions that led
to the deaths of thousands (Class Action Reporter, July 8,
2009).
The case was filed in 2000 as a class-action suit and seeks to
represent Bougainvilleans who continue to be exposed to toxins
resulting from the Panguna mine, individuals who lost property
due to ongoing environmental contamination, and people injured
or killed during the Bougainville conflict between 1989 and
1999.
Under the Alien Tort Claims Act, foreign nationals can bring
suit in the United States against companies that violate
international law. Rio Tinto is the parent company of
subsidiary U.S. Borax Inc., headquartered in Los Angeles. The
court also ruled that war crimes, crimes against humanity and
racial discrimination are such universally recognized norms that
they can be heard under the Alien Tort Claims Act.
New Securities Fraud Cases
ACCURAY INC: Glancy Binkow Files Securities Fraud Suit in Calif.
----------------------------------------------------------------
Glancy Binkow & Goldberg LLP has filed a class action
lawsuit in the United States District Court for the Northern
District of California on behalf of a class consisting of all
persons or entities who purchased the common stock of Accuray,
Inc. (Nasdaq: ARAY) pursuant and/or traceable to the Company's
Initial Public Offering commencing on or about February 7, 2007,
including purchasers of the Company's common stock between
February 7, 2007 and August 19, 2008, inclusive.
The Complaint charges Accuray and certain of its executive
officers and directors with violations of federal securities
laws. Accuray designs, develops and sells the CyberKnife
system, an image-guided, robotic radio surgery system for the
treatment of solid tumors.
The Complaint alleges that throughout the Class Period
defendants knew or recklessly disregarded that their public
statements concerning Accuray's business, operations and
prospects were materially false and misleading. Specifically,
plaintiff alleges that defendants knew or recklessly disregarded
and failed to disclose material adverse information, including,
among other things:
-- that defendants overstated the amount of the Company's
backlog by millions of dollars;
-- that defendants reported as backlog a large percentage
of contingent and non-contingent orders for the
CyberKnife system that did not have a substantially
high probability of being booked as revenue;
-- that Accuray sales personnel entered into contingent
contracts for CyberKnife systems that did not have a
substantially high probability of being booked as
revenue;
-- that Accuray did not have adequate internal controls
and procedures to ensure that potential orders
reported as backlog had a substantially high
probability of being booked as revenue; and
-- based on the foregoing, that defendants lacked a
reasonable basis for their positive statements about
the Company's backlog, operations and financial
condition.
On January 30, 2008, Accuray announced a reduction in its
earning guidance for fiscal year 2008 and that approximately $30
million of orders were taken out of backlog. As a result of
this news, Accuray shares plummeted approximately 36% from the
previous day's close of $14.98 per share, to close on January
31, 2008 at $9.52 per share on extremely high volume of more
than 10 million shares traded.
Then, on August 19, 2008, Accuray revealed that another $39
million had been removed from backlog. The next day, in
response to this news, Accuray shares fell as low as $6.90 per
share, or approximately 9% below the previous day's close, and
eventually closed at $7.71 on August 20, 2008, on volume of more
than 2.2 million shares traded.
Plaintiff seeks to recover damages on behalf of class
members.
A request for lead plaintiff status must satisfy certain
criteria and be made on or before Sept. 21, 2009.
For more details, contact:
Michael Goldberg, Esq.
Richard A. Maniskas, Esq.
Glancy Binkow & Goldberg LLP
Los Angeles, CA
Phone: (310) 201-9150 or (888) 773-9224
E-mail: info@glancylaw.com
Web site: http://www.glancylaw.com
CONSECO INC: Izard Nobel LLP Announces Securities Lawsuit Filing
----------------------------------------------------------------
The law firm of Izard Nobel LLP, which has significant
experience representing investors in prosecuting claims of
securities fraud, announces that a lawsuit seeking class action
status has been filed in the United States District Court for
the Southern District of New York on behalf of those who
purchased the common stock of Conseco, Inc. (NYSE: CNO) between
August 4, 2005 to March 17, 2008.
The Complaint charges that defendants violated federal
securities laws.
Specifically, defendants misrepresented and/or failed to
disclose the following:
-- that Conseco was reporting materially inaccurate
revenue figures;
-- that the Company's reported financial results were
materially misstated and did not present Conseco's
true operating performance;
-- that the Company's shareholders' equity was materially
overstated during the Class Period, including the
overstatement of shareholders' equity by $20.6 million
at December 31, 2006; and
-- as a result, defendants lacked a reasonable basis for
their positive statements about the Company, its
corporate governance practices and earnings growth.
On March 17, 2008, Conseco disclosed that it did not
maintain effective controls over the accounting and disclosure
of insurance policy benefits and the liabilities for insurance
products and that it would restate its financial results for the
years ended December 31, 2004 and 2006, along with affected
Selected Consolidated Financial Data for 2003 and 2004, and
quarterly financial information for 2006 and the first three
quarters of 2007.
A request for lead plaintiff status must satisfy certain
criteria and be made on or before Oct. 5, 2009.
For more details, contact:
Nancy A. Kulesa, Esq.
Wayne T. Boulton, Esq.
Izard Nobel LLP
29 South Main Street, Suite 215
West Hartford, CT 06107
Phone: (800) 797-5499
E-mail: firm@izardnobel.com
Web site: http://www.izardnobel.com/conseco/
CONSECO INC: Shalov Stone Announces N.Y. Securities Suit Filing
---------------------------------------------------------------
Shalov Stone Bonner & Rocco LLP announces that a class
action lawsuit has been filed on behalf of purchasers of the
common stock of Conseco Inc. (NYSE: CNO) between August 4, 2005
and March 17, 2008, inclusive. The lawsuit is pending in the
United States District Court for the Southern District of New
York against Conseco and certain of its officers and directors.
The complaint alleges that, throughout the Class Period,
misrepresented or failed to disclose:
-- that the revenue figures reported by the Company were
materially inaccurate;
-- that Conseco's reported financial results were
materially misstated and did not present the Company's
true operating performance;
-- that Conseco was without the internal controls
necessary to properly report its revenues and
earnings;
-- that Conseco's financial statements were not prepared
in accordance with Generally Accepted Accounting
Principles ("GAAP");
-- that Conseco's shareholders' equity was materially
overstated during the Class Period; and
-- as a result of the above, defendants lacked a
reasonable basis for their positive statements about
Conseco, its corporate governance practices, its
prospects and earnings growth.
On March 17, 2008, Conseco announced that it would be
restating its financial results for the years ended December 31,
2004 and 2006, as well as affected Selected Consolidated
Financial Data for 2003 and 2004, and quarterly financial
information for 2006 and the first three quarters of 2007. On
this news, the price of Conseco's stock fell 12.9%.
For more details, contact:
Amanda C. Scuder, Esq.
Shalov Stone Bonner & Rocco LLP
485 Seventh Avenue, Suite 1000
New York, New York 10018
Phone: (212) 239-4340
Fax: (212) 239-4310
E-mail: ascuder@lawssb.com
Web site: http://www.lawssb.com
FLOTEK INDUSTRIES: Coughlin Stoia Files Securities Fraud Lawsuit
----------------------------------------------------------------
Coughlin Stoia Geller Rudman & Robbins LLP announced that a
class action has been commenced in the United States District
Court for the Southern District of Texas on behalf of purchasers
of the common stock of Flotek Industries, Inc. (NYSE:FTK)
between May 8, 2007 and January 23, 2008, inclusive, seeking to
pursue remedies under the Securities Exchange Act of 1934.
The complaint charges Flotek and certain of its executives
with violations of the Exchange Act. Flotek supplies drilling
and production related products and services to the energy and
mining industries in the United States and internationally. The
Company operates in three segments: Chemicals and Logistics,
Drilling Products, and Artificial Lift.
The complaint alleges that, throughout the Class Period,
defendants failed to disclose material adverse facts about the
Company's true financial condition, business and prospects.
Specifically, the complaint alleges that defendants failed
to disclose the following adverse facts, among others:
-- the Company was experiencing weakness in its Rocky
Mountain sales region due to its decision to not cut
prices to the level of its competitors;
-- the Company's operating profit margins were being
negatively impacted as customers increasingly opted to
rent equipment instead of purchasing it;
-- sales in the Company's chemicals division were
declining due to a decrease in fracing activity; and
-- as a result of the foregoing, defendants' positive
statements concerning the Company's guidance and
prospects were lacking in a reasonable basis at all
relevant times.
On October 31, 2007, Flotek announced its financial results
for the third quarter of 2007, the period ended September 30,
2007. That same day, the Company held a conference call with
investors and analysts, during which it was revealed, among
other things, that all three of the Company's segments were
negatively affected by lower gas prices in the Rocky Mountains.
In response to this announcement, the price of Flotek common
stock fell $14.35 per share, or 28%, to close at $36.45 per
share, on November 29, 2007, on heavy trading volume.
Defendants, however, continued to conceal the full extent of the
problems at the Company.
Then, on January 23, 2008, Flotek announced that the
Company was revising its previously announced guidance for the
year ending December 31, 2007. In response to this
announcement, the price of Flotek common stock fell $7.60 per
share, or 30%, to close at $17.86 per share, on January 24,
2008, on heavy trading volume.
Plaintiff seeks to recover damages on behalf of all
purchasers of Flotek common stock during the Class Period.
For more details, contact:
Darren J. Robbins, Esq. (djr@csgrr.com)
Coughlin Stoia Geller Rudman & Robbins LLP
Phone: 800-449-4900 or 619-231-1058
Web site: http://www.csgrr.com/cases/flotek/
HURON CONSULTING: Berger & Montague Files Securities Fraud Suit
---------------------------------------------------------------
The law firm of Berger & Montague, P.C. filed a class
action suit on August 7, 2009 against Huron Consulting Group,
Inc. (NASDAQ: HURN) , and the Chairman of its Board of
Directors, and PriceWaterhouse Coopers LLP (PwC), Huron's
outside auditor, in the United States District Court for the
Northern District of Illinois on behalf of all purchasers of
Huron common stock from April 27, 2006 to July 31, 2009.
The Complaint alleges that Defendants violated Sections
10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule
10b-5 promulgated thereunder by the SEC by issuing false
financial statements and information in press releases,
conference calls and SEC filings that, as the defendants have
admitted, understated reported employee expense and overstated
reported net income by $57 million. These materially false and
misleading statements had the effect of artificially inflating
the market price of the Company's stock throughout the Class
Period.
On Friday, July 31, 2009, after the market closed, Huron
issued a press release which disclosed that its reported income
and earnings per share (EPS) for 2006 through 2009 were
materially overstated and that the Company's Chairman, CEO and
CFO and Chief Accounting Officer were leaving the Company
without severance. The expected restatement would reduce
reported income by $57 million and EPS by $2.99.
This announcement caused the price of Huron stock to fall
70%, from a closing price of $44.35 per share on Friday, July
31, 2009 to a closing price of $13.60 per share on August 3,
2009, a decline of $30.75 per share, on extraordinary volume of
31.7 million shares traded.
The $57 million overstatement was caused by the Company's
accounting for payments made under "earn-out" provisions based
on post-acquisition performance of four of the Company's post
2005 acquisitions, which were distributed by the sellers of the
acquired companies to Huron employees based on their continued
employment by Huron and performance as Huron employees. The
Company admitted that under generally accepted accounting
principles, this required Huron to account for these payments as
employee expense, which are deducted from income, which the
Company failed to do.
For more details, contact:
Sherrie R. Savett, Esq.
Carole A. Broderick, Esq.
Eric Lechtzin, Esq.
Kimberly A. Walker, Investor Relations Manager
BERGER & MONTAGUE, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 1-888-891-2289 or 215-875-3000
Web site: http://www.bergermontague.com
INTERNATIONAL GAME: Charles H. Johnson Announces Lawsuit Filing
---------------------------------------------------------------
Charles H. Johnson & Associates announces that a class
action has been commenced in the United States District Court
for the District of Nevada on behalf of purchasers of
International Game Technology (NYSE: IGT) publicly traded
securities during the period November 1, 2007 through October
30, 2008.
The Complaint alleges that Defendants failed to disclose
that they had problems associated with gaming platforms, thereby
undermining their optimistic statements made during the Class
Period. It also alleges that Defendants failed to disclose that
IGT was unable to develop and market its server-based ("SB") and
advanced video ("AVP") gaming platforms within the time frame
they had represented to investors due to increasingly
challenging market conditions and mounting costs. The Complaint
further alleges that the Company failed to adequately and timely
record losses for its impaired loans, causing its financial
results to be false. Defendants also issued misleading positive
statements concerning the Company's shift to non-machine based
operations. As a result, it was unlikely that IGT would achieve
or exceed its earnings guidance.
A request for lead plaintiff status must satisfy certain
criteria and be made on or before Sept. 28, 2009.
For more details, contact:
Neal Eisenbraun, Esq.
Charles H. Johnson & Associates
2599 Mississippi Street
New Brighton, MN 55112
Phone: (651) 633-5685
E-mail: cjohnsonlaw@gmail.com
REPROS THERAPEUTICS: Murray Frank Files Securities Fraud Lawsuit
----------------------------------------------------------------
Murray, Frank & Sailer LLP has filed a class action
complaint, in the Southern District of Texas Houston Division,
against Repros Therapeutics, Inc. (Nasdaq: RPRX) and certain of
its officers and directors, on behalf of shareholders who
purchased Repros common stock between July 1, 2009 and August 3,
2009.
The complaint alleges that defendants violated Sections
10(b) and 20(a) of the Securities Exchange Act of 1934 by
issuing materially false and misleading press releases regarding
the success of clinical trials for its drug Proellex. On August
3, 2009, Repros revealed that it was suspending Proellex
clinical trials based in a clinically significant increase in
liver enzymes among participants. On that day, Repros stock
closed at $1.31, a 48% drop from a close of $2.53 the trading
day before. This was a 73% drop from the close of $4.96 on July
1, 2009.
Plaintiff seeks to recover damages on behalf of class
members.
A request for lead plaintiff status must satisfy certain
criteria and be made on or before Oct. 6, 2009.
For more details, contact:
Eva Hromadkova, Esq.
Murray, Frank & Sailer LLP
Phone: 212-682-1818 or 800-497-8076
E-mail: newcase@murrayfrank.com
Web site: http://www.murrayfrank.com
REPROS THERAPEUTICS: Rosen Law Firm Announces Stock Suit Filing
---------------------------------------------------------------
The Rosen Law Firm, P.A. announces that a class action
lawsuit has been filed on behalf of all purchasers of Repros
Therapeutics, Inc. (NASDAQ: RPRX) common stock from July 1, 2009
through August 3, 2009.
The case is pending in the United States District Court for
the Southern District of Texas.
The complaint charges Repros and certain of its officers
with violations of Section 10(b) and 20(a) of the Securities
Exchange Act of 1934. The complaint alleges that defendants
made misleading statements concerning the adverse events that
patients suffered in clinical trials for the Company's lead drug
candidate Proellex. The complaint alleges that when the Company
disclosed the truth concerning the seriousness of the adverse
events, its stock price dropped, damaging investors.
A request for lead plaintiff status must satisfy certain
criteria and be made on or before Oct. 6, 2009.
For more information, contact:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm P.A.
350 5th Avenue, Suite 5508
New York, NY 10118
Phone: 212-686-1060
Weekends Tel: 917-797-4425
Toll Free: 1-866-767-3653
Fax: 212-202-3827
E-mail: lrosen@rosenlegal.com
pkim@rosenlegal.com
Web site: http://www.rosenlegal.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.
*********
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Class Action Reporter is a daily newsletter, co-published by
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Copyright 2009. All rights reserved. ISSN 1525-2272.
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