CAR_Public/100519.mbx             C L A S S   A C T I O N   R E P O R T E R

             Wednesday, May 19, 2010, Vol. 12, No. 97

                            Headlines

BP PLC: Charter Fishing Firm Files Oil Spill Suit in S.D. Ala.
DIAMOND FOODS: Removes Product Mislabeling Lawsuit to N.D. Calif.
FORD MOTOR: Pa. Suit Complains About Defective Rear Axles
GREENBERG TRAURIG: Accused in Ariz. of Aiding Securities Fraud
KNAUF PLASTERBOARD: Drywall Settlement with Beazer Homes Reported

LOS ANGELES SUPERIOR COURT: Accused of Denying Right to Counsel
MDL 2151: Court Agrees to Expand Toyota Plaintiffs' Committees
METROPOLITAN PROPERTY: Accused in R.I. of Defrauding Customers
NATIONAL AUSTRALIA BANK: Shareholders Sue After CDO Writedown
PAYPAL INC: Sued For Freezing Funds of Users for up to 180 Days

PHILIP MORRIS: Calif. Marlboro Smokers Want Medical Monitoring
PINNACLE GROUP: S.D.N.Y. Allows Class Action Suit to Proceed
PROCTOR & GAMBLE: S.D. Ohio Suit Alleges Dry Max is Harmful
ROSES FOR RESTAURANTS: Sued for Sending Unsolicited Fax Ads
RUBIO'S RESTAURANTS: Being Sold for Too Little, Suit Claims

SONY CORP: Seventeenth Optical Disc Drive Price-Fixing Suit Filed
SOUTHERN CONFERENCE: Accused in Ala. Suit of Violating Title IX

                            *********

BP PLC: Charter Fishing Firm Files Oil Spill Suit in S.D. Ala.
--------------------------------------------------------------
Beasley Allen has filed Deupree Outdoor Guide Services, Inc.,
Case No. 10-cv-00252 (S.D. Ala.), on behalf of commercial charter
fishing guide businesses affected by the oil spill in the Gulf of
Mexico.  This class may include all Alabama residents who own or
operate commercial charter fishing guide businesses that have
suffered or will in the future suffer economic losses or damages
as a result of the April 20 explosion and sinking of the
Deepwater Horizon oil rig.

Defendants named in the suit are BP, plc; BP Products North
America, Inc., BP America Inc.; Halliburton Energy Services,
Inc.; and Cameron International Corporation f/k/a Cooper-Cameron
Corporation.

"These charter fishing guides depend on recreational and sports
fishermen to earn a living," said Beasley Allen attorney Rhon
Jones, head of the firm's Environmental Law section. "In
addition, the services provided by these guides contribute
heavily to the state's economy. Without a healthy marine life and
open and accessible fishing areas, their livelihoods are placed
in jeopardy."

The oil drilling platform, the Deepwater Horizon, exploded in the
Gulf of Mexico on April 20 and sank two days later. The wreckage
continues to leak thousands of gallons of oil into the Gulf
waters every day. Environmental and economic damages are expected
to be unprecedented. A 2006 National Marine Fisheries Service
report said 6.2 million recreational anglers in the Gulf region
spent $2.2 billion on more than 23 million fishing trips in 2006.
An estimated 3.2 million recreational anglers took fishing trips
in the Gulf of Mexico during 2008. In 2009, travel in Alabama's
Gulf Coast Region accounted for 35 percent of the state's tourism
revenue, as well as 36 percent of the state's travel-related
employment, and generated more than $3 billion in tourism-related
expenditures for the state.

                   About Beasley Allen Law Firm

Headquartered in Montgomery, Alabama, Beasley Allen --
http://www.beasleyallen.com/-- is comprised of 44 attorneys and  
more than 200 support staff. Beasley Allen is a national leader
in civil litigation, with verdicts and settlements of over $20
billion. Our environmental attorneys negotiated the largest
environmental settlement in U.S. history. At $700 million for PCB
contamination in Anniston, Alabama, involving Solutia, Monsanto
and Pharmacia, it doubled the previous benchmark in this area of
litigation. Also among the firm's successes is an $11.8 billion
verdict against ExxonMobil Corp., for breach of contract and
fraud.


DIAMOND FOODS: Removes Product Mislabeling Lawsuit to N.D. Calif.
-----------------------------------------------------------------
Aran Eisenstat, on behalf of himself and others similarly
situated v. Diamond Foods, Inc., Case No. 10-498587 (Calif.
Super. Ct., San Francisco Cty.) was filed on March 25, 2010.  Mr.
Eisenstat alleges that the marketer of Diamond Brand walnuts made
false health claims about the benefits of its Shelled Walnuts
products in promoting heart health, in violation of federal
labeling laws.  

Because the complaint involves alleged violations of federal law,
and further because district courts have original jurisdiction of
all civil actions arising under the Constitution, laws, or
treaties of the United States, Diamond Foods, on May 12, 2010,
removed the lawsuit to the Northern District of California, San
Francisco Division, and the Clerk assigned Case No. 10-cv-02054
to the proceeding.  

The Plaintiff is represented by:

          Willian T. Payne, Esq.
          STEMBER FEINSTEIN DOYLE & PAYNE LLC
          1007 Mount Royal Boulevard
          Pittsburgh, PA 15223
          Telephone: (412) 492-8797

               - and -

          Ellen M. Doyle, Esq.
          STEMBER FEINSTEIN DOYLE & PAYNE LLC
          429 Forbes Ave., 17th Floor
          Pittsburgh, PA 15219
          Telephone: (412) 281-8400

               and

          Joseph N. Kravec, Jr.
          SPECTER SPECTER EVANS & MANOGUE, P.C.
          The Koppers Building
          436 Seventh Avenue, 26th Floor
          Pittsburgh, PA 15219
          Telephone: (412) 642-2300

The Defendant is represented by:

          Jeffrey J. Lederman, Esq.
          Jeffrey S. Bosley, Esq.
          Amanda L. Goves, Esq.
          Leda M. Mouallem, Esq.
          WINSTON & STRAWN LLP
          101 California Street
          San Francisco, CA 94111-5802
          Telephone: (415) 591-1000
          E-mail: jlederman@winston.com
                  jbosley@winston.com
                  agroves@winston.com
                  lmouallem@winston.com


FORD MOTOR: Pa. Suit Complains About Defective Rear Axles
---------------------------------------------------------
Courthouse News Service reports that Ford Windstar minivans,
models 1999 to 2003, had defective rear axles that rusted from
the inside out, a class action claims in Philadelphia Federal
Court.

A copy of the Complaint in Martin v. Ford Motor Company, Case No.
10-cv-_____ (E.D. Pa.), is available at:

     http://www.courthousenews.com/2010/05/14/Ford.pdf

The Plaintiff is represented by:

          Ruben Honik, Esq.
          Richard M. Golomb, Esq.
          Kenneth J. Grunfeld, Esq.
          Damien Zillas, Esq.
          GOLOMB & HONIK, PC
          1515 Market St., Suite 1100
          Philadelphia, PA 19102
          Telephone: 215-985-9177


GREENBERG TRAURIG: Accused in Ariz. of Aiding Securities Fraud
--------------------------------------------------------------
Jamie Ross at Courthouse News Service reports that two Phoenix-
based real estate investment groups defrauded more than 2,000
investors of $900 million, a class action claims in Federal
Court. The class claims Mortgages Ltd. and Radical Bunny were
aided by law firms Greenberg Traurig and Quarles & Brady, which
helped create false and misleading documents.

Nine named plaintiffs claims that in 2005 Mortgages Ltd. was
forced to "adopt a Ponzi approach in which an ever-expanding base
of investor money was borrowed to cover operating expenses,
investor interest, investor redemptions," and the extravagant
lifestyle of its CEO Scott Coles.

Mr. Coles is dead, an apparent victim of suicide in June 2008,
just before Mortgages Ltd. filed for bankruptcy.  He was reported
to have died of an overdose of pills and alcohol, dressed in a
tux, surrounded by a "shrine" to his ex-wife.

Before his exit, the class claims, Mr. Coles sought help from his
accountant, defendant Tom Hirsch, who had access to money from
about 900 investors through his company, Radical Bunny, which "he
could use to fund a revolving line of credit to supplement new
money that Coles was obtaining from his own investors."

The class claims that Messrs. Coles and Hirsch never told them
that Mortgages Ltd. was underwater and was borrowing about $200
million from Radical Bunny, which was "illegally operating as an
unlicensed securities dealer for Mortgages Ltd."

Because Mortgages Ltd. never made payments on its Radical Bunny
loans, Radical Bunny had to raise new money to meet redemption
requests from old investors and did not disclose to investors
that it was the money from new investors that was funding the
redemption requests, the lawsuit claims.

Radical Bunny, Mr. Hirsch and manager "Bunny" Walder then
allegedly "misled their investors by falsely assuring them that
their investments were secured by Mortgages Ltd.'s assets,"
though there was no security.

The class claims that Greenberg Traurig and Quarles & Brady
"played a substantial role in inducing the illegal sales," since
they knew that the two investment groups were funded through
illegal securities sales, yet continued to prepare private-
offering memoranda for investors.

(Nonparty) Robert Kant, a Greenberg Traurig partner, allegedly
said that Mr. Hirsh could "go to jail for Radical Bunny's
securities violations and that both Messrs. Hirsch and Coles
could end up on the front page of the Arizona Republic," and a
Quarles & Brady partner allegedly claimed that the investment
group's relationship "had a Ponzi scheme feel" to it.

When Mortgages Ltd. filed for bankruptcy it owed investors $700
million and owed Radical $197 million in loans, according to the
complaint.

In January this year, Mortgages Ltd. agreed to an SEC order
revoking its registration as a securities dealer.  The SEC
settlement did not return any money to investors, though; the SEC
found that it did not have the money available.

The class seeks damages for securities fraud, aiding and abetting
and negligent misrepresentation.  

A copy of the Complaint in Facciola, et al. v. Greenberg Traurig,
LLP, et al., Case No. 10-cv-01025 (D. Ariz.), is available at:

     http://www.courthousenews.com/2010/05/14/RadicalBunny.pdf

The Plaintiffs are represented by:

          Richard G. Himelrick, Esq.
          J. James Christian, Esq.
          TIFFANY & BOSCO, P.A.
          Third Floor Camelback Esplanade II
          2525 East Camelback Rd.
          Phoenix, AZ 85016-4237
          Telephone: 602-255-6000
          E-mail: rgh@tblaw.com
                  jjc@tblaw.com

               - and -

          Andrew S. Friedman, Esq.
          BONNETT, FAIRBOURN, FRIEDMAN & BALINT, P.C.
          2901 N. Central Ave., Suite 1000
          Phoenix, AZ 85012
          Telephone: 602-274-1100
          E-mail: afriedman@bffb.com


KNAUF PLASTERBOARD: Drywall Settlement with Beazer Homes Reported
-----------------------------------------------------------------
Robbie Whelan and Dawn Wotapka at The Wall Street Journal report
that Knauf Plasterboard Tianjin Co., one of the companies tangled
in litigation over defective Chinese-made drywall, said it has
reached a settlement with builder Beazer Homes USA Inc., an
indication that Knauf is moving quickly to settle claims before
lawsuits go to court.

Atlanta-based Beazer didn't respond to request for comment. But
Knauf's lawyer:

          Kerry J. Miller, Esq.
          FRILOT LLC
          1100 Poydras Street, Suite 3700
          New Orleans, LA 70163
          Telephone: (504) 599-8000
          E-mail: kmiller@frilot.com

confirmed that a settlement had been reached. Mr. Miller said
Knauf, known as KPT, is in talks with between six and 10 other
builders that had used its Chinese-made wallboard, ranging from
big players to mom-and-pops, and settlements are expected within
weeks.

Builders have been hit by a rash of lawsuits from homeowners, who
complain that defective drywall, also known as gypsum board,
imported from China during the housing boom is generating
sulfurous odors, corrodes metal and, in some case, causes health
problems. The home builders, under pressure to fix affected
homes, are suing the manufacturers and other parties to cover
their costs.

Builders will have to document that their problem drywall did
indeed come from KPT and show reasonable repair costs.

"We have a lot of people calling us up and saying we have drywall
that says 'Made in China' on it and they assume that it's ours,"
Mr. Miller said. "But it's not necessarily ours."

Beazer, in its most recent quarterly report, said it has
identified about 50 homes in Southwest Florida where
subcontractors installed defective product in fiscal 2006 and
2007. It has warranty reserves of nearly $27 million, a figure
that could grow should additional cases be confirmed.

Another homebuilder, Lennar Corp., meanwhile, has set aside
nearly $81 million to repair about 750 homes in Florida. In
addition to rampant construction during the housing bubble, the
state used imported drywall as it rebuilt from hurricanes in 2004
and 2005.

The problematic product also wasn't limited to the Sunshine
State: The U.S. Consumer Product Safety Commission has received
nearly 3,300 reports from 37 states and other areas.

Experts estimate it costs about $100,000 to pull out bad drywall
and replace corroded electrical wiring and appliances in an
average-sized home. Consulting firm Towers Watson has estimated
U.S. drywall damages of $15 billion to $25 billion.

KPT is facing nearly 200 federal lawsuits, mostly from
homeowners, over the defective drywall. Mr. Miller, the
manufacturer's lawyer, said that three builders have sued the
company. Two of them are independent companies based in Florida-
Heritage Homes of Northwest Florida and Mitchell Co. Beazer made
claims against KPT but never formally filed suit.

KPT has been working to settle with builders ahead of potentially
expensive court decisions.

As part of a suit against different drywall manufacturer, Taishan
Gypsum Co., a court awarded $2.6 million in April to seven
Virginia families. That averages more than $371,000 per
homeowner.

Also, last month, a federal court in New Orleans awarded $164,000
to a Louisiana homeowner who claimed faulty KPT drywall had been
installed in the family's house.

In that decision, the court relied on information provided by
Beazer, which developed a remediation protocol based on
fulfilling the warranty agreement in the "most practical and
cost-effective way possible." Beazer's process replaces
everything from cabinetry to affected plumbing components.

Beazer was one of the first builders to step up and fully
remediate troubled homes, said:

          Christopher A. Seeger, Esq.
          SEEGER WEISS LLP
          One William Street
          New York, NY 10004
          Telephone: (888) 584-0411
          E-mail: cseeger@seegerweiss.com

who represents families suing KPT.

"There's really no defense in this drywall," he said. "The
product is defective."

Repairing the homes might address the distinctive "rotten egg"
odor, but the possible health effects, which remain under
investigation, weren't addressed at either trial.

That's one reason why John C. "Chuck" Fowke, president of the
Florida Home Builders Association, questioned whether settlements
that provide homeowners money for remediation work go far enough.

"At this point houses that have been completed with full
remediation are still viewed as a liability. Is cross
contamination a possibility?" Mr. Fowke said.

"I could go on and on," he said, "but the fact is that there is
much uncertainty surrounding drywall imported from China."


LOS ANGELES SUPERIOR COURT: Accused of Denying Right to Counsel
---------------------------------------------------------------
Ronald Gottschalk, individually and on behalf of others similarly
situated v. The Los Angeles Superior Court, et al., Case No. 30-
2010-00370946 (Calif. Super. Ct., Orange Cty. May 11, 2010),
asserts civil rights violations pursuant to Sec. 1983 of the U.S.
Code.  Mr. Gottschalk says defendants conspired to violate his
constitutional rights under the Fourth, Fifth, Sixth, Eighth and
Fourteenth Amendments to the U.S. Constitution, including the
right to appointed counsel in connection with his pending
criminal case with the Los Angeles Superior Court (Case No. BA
391996), the right to have a fair preliminary hearing and to
negate the elements of the crime charged, to cross examine and
subpoena witnesses, to prove affirmative defenses, to receive
Brady material and other exculpatory evidence prior to the
preliminary hearing, to have a fair trial, to be free from
excessive bail and criminal protective orders, and to be free
from unlawful extrajudicial ex parte communications to corruptly
influence the outcome of proceedings.  Mr. Gottschalk adds that
defendants' actions were intentionally made in violation of the
Code of Judicial Ethics or the State Bar Rules of Professional
Conduct.

Mr. Gottschalk explains that he is being prosecuted by the
District Attorney's Office in retaliation for exercising his due
process rights to prosecute cases under the Medicare Secondary
Payer Act and to seek to recover billions of dollars that are due
the U.S. government agencies and the State of California and
others from this massive continuing fraud scheme that caused both
the Los Angeles Superior Court and the San Diego Superior Court
benches to be completely disqualified by Chief Justice Ronald
George and the Presiding Judge of these courts in connection with
his civil cases.  Mr. Gottschalk relates that he has already
prevailed in the parallel civil case and the parallel criminal
contempt case that was wrongfully prosecuted against him with
knowledge that he was completely innocent.

Mr. Gottschalks relates that this complaint is being filed to
remove the pending criminal case from the Los Angeles County
Superior Court to the Orange County Superior Court, and to
prevent further violation of Plaintiff's constitutional rights,
including his right to appointed counsel throughout his criminal
case.

The Plaintiff represents himself:

          Ronald Gottschalk, Esq.
          RONALD N. GOTTSCHALK
          1160 S. Golden West Ave., Suite 3
          Arcadia, CA 911007
          Telephone: (310) 476-3197


MDL 2151: Court Agrees to Expand Toyota Plaintiffs' Committees
--------------------------------------------------------------
Amanda Bronstad at The National Law Journal reports that a
federal judge in California acceded to plaintiffs' request for a
robust litigation committee structure in appointing lead counsel
for the multidistrict litigation against Toyota Motor Corp. over
sudden unintended acceleration defects in its vehicles.

In an order released on Friday in In re Toyota Motor Corp.
Unintended Acceleration Marketing, Sales Practices, and Products
Liability Litigation, MDL No. 2151; Master Docket No. 10-ml-02151
(C.D. Calif.), U.S. District Judge James Selna appeared receptive
to arguments by the attorneys that the litigation required more
than a dozen lawyers behind the wheel -- the original number that
he anticipated would be required.  A copy of Judge Selna's 11-
page order adopting the structure outlined in the lawyers' Joint
Preliminary Report is available at http://is.gd/ccXLg

"The structure is somewhat larger than the Court initially
envisioned," Selna wrote. "However, the Court became convinced at
the initial hearing that a larger group of counsel is needed to
meet the needs of this case."

Nearly 70 plaintiffs' attorneys spent Thursday in Selna's Santa
Ana, Calif., courtroom attempting to convince him that there
should be more members on the committees in charge of the
litigation. Each argued for a leadership role in the MDL.

The MDL involves more than 200 lawsuits divided into two groups:
those seeking economic losses on behalf of consumers and others
who have lost value on their Toyotas, and those seeking damages
for people who have been injured or killed in a Toyota.

Leading the economic loss committee will be Steve Berman,
managing partner of Seattle's Hagens Berman Sobol Shapiro; Frank
Pitre of Cotchett, Pitre & McCarthy in Burlingame, Calif.; and
Marc Seltzer, a partner in the Los Angeles office of Houston's
Susman Godfrey, according to Friday's order.

Heading the liaison committee for the personal injury and
wrongful death cases will be Elizabeth Cabraser of San
Francisco's Lieff Cabraser Heimann & Bernstein and Mark Robinson
Jr., senior partner at Robinson, Calcagnie & Robinson in Newport
Beach, Calif.

"It's a privilege that Judge Selna chose us to handle this
massive litigation against Toyota," Berman said in an e-mailed
statement on Friday. "It's a great responsibility to lead a class
of this magnitude and it's something we believe Hagens Berman has
the experience and talent to achieve on behalf of the consumers
we represent."

Selna expanded the lead counsel committee for the economic loss
cases to nine members, including Berman and Seltzer, who
represent the consumer plaintiffs, and Pitre, who represents
nonconsumers such as car dealerships and rental car companies.

Of the remaining members, four will represent consumers: Benjamin
Bailey of Bailey & Glasser in Charleston, W.V.; Stanley Chesley,
president of Cincinnati's Waite, Schneider, Bayless & Chesley;
Jayne Conroy of Hanly Conroy Bierstein Sheridan Fisher & Hayes in
New York; and Michael L. Kelly of Kirtland & Packard in El
Segundo, Calif.

Two will represent the nonconsumers: Richard Arsenault, senior
partner at Neblett, Beard & Arsenault in Alexandria, La.; and
Jerome Ringler of Ringler Kearney Alvarez in Los Angeles.

The judge also expanded the size of the liaison committee for the
personal and wrongful death cases to nine members, including
Cabraser and Robinson. The other members are: Lewis "Mike" S.
Eidson, a partner at Colson Hicks Eidson in Coral Gables, Fla.;
Mark Lanier of The Lanier Law Firm in Houston; Richard D. McCune,
a partner at McCuneWright in Redlands, Calif.; W. Daniel "Dee"
Miles, a shareholder at Beasley, Allen, Crow, Methvin, Portis &
Miles in Montgomery, Ala.; Brian Panish, a partner at Panish,
Shea & Boyle in Los Angeles; Hunter Shkolnik, a partner at
Rheingold, Valet, Rheingold, Shkolnik & McCartney in New York;
and Donald H. Slavik, a partner at Milwaukee's Habush Habush &
Rottier.

The order sets forth a core discovery committee with nine
members, all of whom will come from the other two committees.
Another three liaison counsel will work with lawyers in a series
of state cases against Toyota and other types of federal cases,
including shareholder litigation. Serving in that role will be
Wylie Aitken, founding partner of Aitken * Aitken * Cohn in Santa
Ana; Dawn Barrios of Barrios Kingsdorf & Casteix in New Orleans;
and Gretchen M. Nelson of the Los Angeles office of Kreindler &
Kreindler.

Selna permitted one or more counsel to handle specific duties
"limited to a particular factual or legal area," according to the
order. He specifically designated Monica Kelly of Ribbeck Law
Chartered in Chicago to serve as consultant to the liaison
committee and lead counsel committee for Toyota consumers and
others outside the United States.

The committee size and selections reflected in large part the
recommendations of Berman, Cabraser and Seltzer, who had been
appointed temporary lead counsel in the cases.

"He was impressed with all the different battles that will go on
in this case," Berman said of the judge.

On the defense side, Selna elaborated on a temporary order he
issued on Wednesday appointing Cari Dawson and Lisa Gilford of
Alston & Bird as lead defense counsel in the economic loss cases,
and Vince Galvin and Joel Smith of Bowman and Brooke as lead
counsel in the personal injury and wrongful death cases for
Toyota. Galvin and Gilford also will serve as the defense's
liaison counsel to the state cases and other federal cases.

The next hearing in the case is scheduled for May 28, when Selna
is expected to issue a scheduling order for pleadings, including
the consolidated class action complaint for the economic loss
claims and motions related to the personal injury and wrongful
death cases.

"The Court intends for such motions to serve as bellwethers which
will provide the parties guidance with respect to the same issues
in other cases before further motions practice proceeds," he
wrote.

Selna also is expected to issue an evidence preservation order.

"It is a great honor to have been selected and appointed by the
court to lead this litigation, but it is also a tremendous
challenge and responsibility for any lawyer and law firm," Miles
said via e-mail. "We asked the court for this challenge and we
accept our appointment with full appreciation of its importance
to the families of the deceased victims, consumers and businesses
who have suffered as a result of these alleged automotive defects
in Toyota products."

Arsenault, in an e-mailed statement, said that "few decisions by
the court in complex litigation are as difficult and sensitive as
the appointment of designated counsel. Now with an organized
structure and corresponding appointments in place, the litigation
can proceed under Judge Selna's capable supervision."


METROPOLITAN PROPERTY: Accused in R.I. of Defrauding Customers
--------------------------------------------------------------
Courthouse News Service reports that Metropolitan Property and
Casualty Insurance defrauds customers and breaches contract by
misclassifying totaled cars as salvageable, a class action claims
in Providence, R.I., Federal Court.

A copy of the Complaint in Moore v. Metropolitan Group Property
and Casualty Insurance, et al., Case No. 10-cv-00212 (D. R.I.),
is available at:
     
     http://www.courthousenews.com/2010/05/14/Insure.pdf

The Plaintiff is represented by:

          Jeffrey C. Schreck, Esq.
          JEFFREY C. SCHRECK
          99 Wayland Ave., Suite 200
          Providence, RI Providence Co. 02906
          Telephone: 401-421-9600
          E-mail: jschreck@msn.com

               - and -

          Richard A. Dillenburg, Esq.
          RICHARD A. DILLENBURG, P.C.
          2173 East Warner Rd., Suite 101
          Tempe, AZ 85284

               - and -

          Steven C. Dawson, Esq.
          Anita Rosenthal, Esq.
          DAWSON & ROSENTHAL, P.C.
          3550 N. Central Ave., Suite 1750
          Phoenix, AZ 85012
          Telephone: 602-494-3800

               - and -

          Elaine A. Ryan, Esq.
          Patricia N. Syverson, Esq.
          BONNETT, FAIRBOURN, FRIEDMAN & BALINT, PC
          2901 N. Central Ave., Suite 1000
          Phoenix, AZ 85012
          Telephone: 602-274-1100

               - and -

          Van Bunch, Esq.
          BONNETT, FAIRBOURN, FRIEDMAN & BALINT (TN)
          57 Carriage Hill
          Signal Mountain, TN 37377
          Tel: 602-274-1100

               - and -

          David A. Futscher, Esq.
          PARRY DEERING FUTSCHER & SPARKS PSC
          411 Garrard St., P.O. Box 2618
          Covington, KY 41012-2618
          Telephone: 859-291-9000


NATIONAL AUSTRALIA BANK: Shareholders Sue After CDO Writedown
-------------------------------------------------------------
Alison Bell at AAP reports that law firm Maurice Blackburn has
opened a second front in its campaign against the banks.

This time it is alleging that shareholders collectively lost $450
million from the National Australia Bank Ltd for not revealing
its exposure to specialised financial products called
collateralised debt obligations.

The law firm says the NAB exposure to the CDO's and its delay in
writing down their value helped cause a sharp fall in the bank's
share price during the global financial crisis.

Six days ago the law firm targeted 12 banks -- including NAB --
in a $5 billion class action over exception fees in what could
become the nation's largest class action.

Maurice Blackburn spokeswoman Amanda Tattam told AAP on Monday
that the law firm would launch new proceedings against NAB in the
Federal Court in Melbourne within six weeks over delays in not
writing down its $1.2 billion portfolio of CDOs.

Ms Tattam said 120 institutional and retail investors had already
signed up to join the class action involving the NAB CDOs.

The investors are alleging the bank failed to disclose its
exposure to 10 CDOs of asset-backed securities held by NAB arm
nabCapital.

"Shareholders who bought shares before NAB revealed its true
position suffered a loss," Ms Tattam said.

Maurice Blackburn estimates the loss suffered by shareholders to
be $450 million.

The law firm first announced its intention to bring the action 12
months ago but International Litigation Funding Partners was only
now ready to fund the action, Ms Tattam said.

NAB's CDOs formed part of a $5.7 billion structured credit
portfolio of corporate bonds, CDOs, commercial mortgage backed
securities and synthetic CDOs.

Maurice Blackburn last year said it contended the first provision
by NAB announced in May 2008 was only about 15 per cent of the
face value of the CDOs and that this was at a time when other
banks were engaging in much more significant writedowns.

NAB later told the market that a much higher probability of loss
on the CDOs had emerged in the two months from May to July 2008
from a series of developments.

These included a rapid rise in defaulted mortgages, US housing
foreclosures leading to a large unsold property overhang and
weakness of monoline insurers increasing the likelihood CDO
noteholders would liquidate their holding.

Maurice Blackburn said in May 2009 these conditions existed from
January to May 2008 and the law firm alleged the bank's full
provision in July 2008 was a delayed reaction that breached its
continuous disclosure obligations to shareholders.

NAB's share price plummeted 13.5 per cent on July 25, 2008 to
$26.56 and the risk of further writedowns hung over the stock for
the remainder of 2008.

In September 2008, NAB spokesman Brandon Phillips said the market
value of the CDOs had halved but because the products were held
to maturity rather than marked to market their value did not
drive the provisioning.


PAYPAL INC: Sued For Freezing Funds of Users for up to 180 Days
---------------------------------------------------------------
Ronya Osman and Brian Pattee, individually and on behalf of
others similarly situated v. PayPal, Inc. and eBay Inc., Case No.
10-cv-02046 (N.D. Calif. May 12, 2010), accuses the online
payment solutions provider of withholding funds belonging to
users of its payments system for up to 180 days, without
explaining the reasons for its actions, which Plaintiffs say
contravenes its contractual and common law duties.  Plaintiffs
add that PayPal's actions violate the California Unfair Business
Practices Act and the California Consumers Legal Remedies Act,
and also constitute a violation of The Electronic Funds Transfer
Act.  PayPal, Inc. is a subsidiary of eBay Inc.

The Plaintiffs are represented by:

          Mark N. Todzo, Esq.
          Howard Hirsch, Esq.
          LEXINGTON LAW GROUP
          1627 Irving Street
          San Francisco, CA 94122
          Telephone: (415) 759-4111
          E-mail: mtodzo@lexlawgroup.com
                  hhirsch@lexlawgroup.com

               - and -
          
          Eric D. Freed, Esq.
          Julie D. Miller, Esq.
          FREED & WEISS LLC
          111 West Washington St., Suite 1331
          Chicago, IL 60602
          Telephone: (312) 220-0000
          E-mail: eric@freedweiss.com
                  juliem@freedweiss.com



PHILIP MORRIS: Calif. Marlboro Smokers Want Medical Monitoring
--------------------------------------------------------------
Burt Xavier and James Franklin, on behalf of themselves and
others similarly situated v. Philip Morris USA, Inc., Case No.
10-cv-02067 (N.D. Calif. May 14, 2010), alleges violation of Cal.
Bus. & Prof. Code Sec. 17200's prohibition against engaging in
unlawful business acts or practices (allegedly because of the
cigarette manufacturer's failure to disclose the defects of its
Marlboro cigarettes at the time of purchase) and violations of
the Consumer Legal Remedies Act (by making misrepresentations
regarding its Marlboro cigarettes).  Plaintiffs add that Philip
Morris' flagrant conduct and the addictive and fatal consequence
of smoking Marlboro cigarettes impose on the Court a duty under
California law to fashion an appropriate legal remedy to correct
the effect of defendant's conduct.

Messrs. Xavier and Franklin tell the Court that they merely want
Philip Morris to provide class members, through a court-
supervised program, with a specific form of medical surveillance
for early detection of lung cancer.  This is the Low Dose CT
Scanning of the chest, which plaintiffs say is a safe, effective
and inexpensive method of diagnosing lung cancers at an early
stage when they are still curable.  

Messrs. Xavier and Franklin maintain that Philip Morris had
available to it feasible alternative designs, which would have
reduced the cancer-causing content of Marlboro cigarettes, and
thus the risk of developing lung cancer, but which it did not
provide.

The Plaintiff is represented by:

          Ingrid M. Evans, Esq.
          Sundeep Patel, Esq.
          WATERS KRAUS & PAUL
          711 Van Ness Ave., Suite 220
          San Francisco, CA 94104
          Telephone: (415) 296-6060
          E-mail: ievans@waterskraus.com
                  spatel@waterskraus.com

               - and -

          Charles S. Siegel, Esq.
          WATERS KRAUS & PAUL
          3219 McKinney Avenue
          Dallas, TX 75204
          Telephone: (214) 357-6244
          E-mail: csiegel@waterskraus.com

               - and -

          Steven J. Phillips, Esq.
          Victoria E. Phillips, Esq.
          LEVY PHILLIPS & KONIGSBERG, LLP
          800 Third Ave., 13th Floor
          New York, NY 10022
          Telephone: (212) 605-6200
          E-mail: sphillips@lpklaw.com
                  vphillips@lpklaw.com


PINNACLE GROUP: S.D.N.Y. Allows Class Action Suit to Proceed
------------------------------------------------------------
Tara Monks at TopWireNews.com reports that a Manhattan federal
judge has allowed for thousands of current and past tenants of
properties owned by Joel Weiner's Pinnacle Group to file a
lawsuit for trying to strong-arm them out of their apartments,
according to New York Daily News.

Federal judge Colleen McMahon approved the class-action lawsuit
which could result in damages in the millions.

Weiner and the Pinnacle Group are linked to 420 buildings within
New York City, which house at least 60,000 tenants. Tenants have
charged that the company launched harassment campaigns to drive
them from their rent-regulated apartments.

Plaintiffs have reported getting antagonistic responses from the
company after stating security concerns, having their rent checks
held while being told they were never sent in and being subject
to substandard repair jobs.

The judge's decision to allow the lawsuit follows a 2007 suit
filed by 11 residents that claimed Pinnacle regularly failed to
make repairs and systematically evicted tenants in order to raise
rents.

For a payout to occur, the tenants are required to prove that
Pinnacle violated federal racketeering laws by plotting to get
rid of tenants in order to raise rents. If the allegations are
proven true, the plaintiffs will then be able to sue individually
for damages.

The city Department of Housing Preservation and Development has
cited many Pinnacle apartments for insufficient fire exits, lack
of hot water and heat and lead paint contaminations. Numerous
complaints took years to correct, or are still awaiting
correction.

The class-action lawsuit is open to current and past tenants who
have rented from Weiner's Pinnacle Group since 2004. Many have
stated they will add their names to the plaintiff list during a
meeting that was held Wednesday, May 12.

Weiner's lawyer has scoffed the lawsuit, calling the allegations
"overblown."


PROCTOR & GAMBLE: S.D. Ohio Suit Alleges Dry Max is Harmful
-----------------------------------------------------------
AboutLawsuits.com reports that a class action suit has been filed
against Proctor & Gamble on behalf of all purchasers of Pampers
diapers or "Easy Ups" containing a new "Dry Max" technology,
which have been linked to reports of severe diaper rash,
blisters, chemical burns, infections and other problems.

The Pampers diaper class action lawsuit was filed on May 11 in
the U.S. District Court for the Southern District of Ohio. The
claim seeks to force Proctor & Gamble to reimburse parents who
bought the diapers, pay for the treatment of skin ailments
allegedly caused by the Pampers diapers and regularly test their
products to ensure they are not causing skin rashes or chemical
burns.

In March, Proctor & Gamble released new Pampers Swaddlers and
Cruisers diapers using "Dry Max" technology.  The diapers are
thinner than previous Pampers.  However, a growing number of
parents say that their children suffered severe rashes, blisters
and what appear to be chemical burns after wearing the diapers.

The company has previously called the claims made in the Pampers
diaper lawsuit false, and says that the allegations of severe
diaper rash were started by a group of parents using social media
to spread rumors about the diapers because they did not like the
changes the company made to the diapers.  However, parents from a
Facebook group say they took to social media after they went to
P&G directly and their concerns were swept aside.

The company pulled in about $8.5 billion in revenue from Pampers
last year.

Earlier this month, the U.S. Consumer Product Safety Commission
announced that it was opening an investigation into Pampers Dry
Max diaper rash claims. Health Canada has also launched an
investigation. The CPSC is urging parents who have experienced
problems to contact them immediately. Parents can contact the
CPSC at https://www.cpsc.gov/cgibin/incident.aspx

A copy of the Complaint in York, et al. v. The Procter & Gamble
Company, et al., Case No. 10-cv-00304 (S.D. Ohio), is available
at:

     http://www.courthousenews.com/2010/05/14/Pampers.pdf

The Plaintiffs are represented by:

          Gary D. Greenwald, Esq.
          KELLER ROHRBACK P.L.C.
          3101 North Central Ave., Suite 1400
          Phoenix, AZ 85102
          Telephone: 602-248-0088
          E-mail: ggreenwald@kellerrohrback.com

               - and -

          Lynn Lincoln Sarko, Esq.
          Gretchen Freeman Cappio, Esq.
          Gretchen S. Obrist, Esq.
          KELLER ROHRBACK L.L.P.
          1201 Third Ave., Suite 3200
          Seattle, WA 98101
          Telephone: 206-623-1900
          E-mail: lasarko@kellerrohrback.com
                  gcappio@kellerrohrback.com
                  gobrist@kellerrohrback.com

               - and -

          Donald S. Varian, Jr., Esq.
          DONALD S. VARIAN, ESQ.
          195 South Main St., Suite 400
          Akron, OH 44308
          Telephone: 330-434-4100
          E-mail: varianlaw@aol.com


ROSES FOR RESTAURANTS: Sued for Sending Unsolicited Fax Ads
-----------------------------------------------------------
JT's Frames, Inc., on behalf of itself and others similarly
situated v. Roses For Restaurants, LLC, et al., Case No.
2010-CH-20303 (Ill. Cir. Ct., Cook Cty. May 12, 2010), accuses
the wholesale flower distributor of sending unwanted fax
advertisements, in violation of the federal Telephone Consumer
Protection Act.  JT's Frames says that by sending unsolicited
faxes, Roses illegally converted recipients' fax machines, toner
and paper to its own use.  Unsolicited faxes, JT's Frames   
explains, also invade recipients' privacy and use up valuable
time they could have spent on other things.
  
The Plaintiff is represented by:

          Brian J. Wanca, Esq.
          ANDERSON + WANCA
          3701 Algonquin Road, Suite 760
          Rolling Meadows, IL 60008
          Telephone: (847) 368-1500
         
               - and -
          
          Phillip A. Bock, Esq.
          BOCK & HATCH, LLC
          134 North La Salle St., Suite 1000
          Chicago, IL 60602
          Telephone: (312) 658-5500


RUBIO'S RESTAURANTS: Being Sold for Too Little, Suit Claims
-----------------------------------------------------------
Courthouse News Service reports that a shareholder class action
claims directors of Rubio's Restaurants engaged in self-dealing
and are selling the chain too cheaply through an unfair process
to Mill Road Capital, for $8.70 a share or $91 million, in San
Diego County Court, Vista.

A copy of the Complaint in Burt v. Rubio, et al., Case No. 37-
2010-00054867 (Calif. Super. Ct., San Diego Cty.), is available
at:

     http://www.courthousenews.com/2010/05/14/Rubios.pdf

The Plaintiff is represented by:

          Brian J. Robbins, Esq.
          S. Benjamin Rozwood, Esq.
          Ashley R. Palmer, Esq.
          Alejandro E. Moreno, Esq.
          ROBBINS UMEDA LLP
          600 B St., Suite 1900
          San Diego, CA 92101
          Telephone: 619-525-3990


SONY CORP: Seventeenth Optical Disc Drive Price-Fixing Suit Filed
-----------------------------------------------------------------
Beth O'Donnell, et al., on behalf of themselves and others
similarly situated v. Sony Corporation, et al., Case No.
10-cv-02035 (N.D. Calif. May 11, 2010), accuses the multinational
conglomerate of conspiring to fix the price of optical disc drive
products sold in the United States, resulting to inflated prices
for optical disc drive products sold in the market, in violation
of state antitrust and consumer protection laws.

The Plaintiffs are represented by:

          Brian Barry, Esq.
          LAW OFFICES OF BRIAN BARRY
          1801 Avenue of the Stars, Suite 307
          Los Angeles, CA 90067
          Telephone: (310) 788-0831
                  
              - and -

          Mark Gardy, Esq.
          GARDY & NOTIS
          560 Sylvan Avenue, Third Floor
          Englewood Cliffs, NJ 07632
          Telephone: (201) 567-7377

Coverage of Slavin v. Sony Optiarc, Inc., et al., Case No.
10-cv-01291 (N.D. Calif.), appeared in the Class Action Reporter
on Mon., Apr. 5, 2010; coverage of Herman v. Sony Corporation, et
al., Case No. 10-cv-01362 (N.D. Calif.), appeared in the Class
Action Reporter on Tues., Apr. 6, 2010; coverage of Bay Area
Systems, LLC v. Sony Corporation, et al., Case No. 10-cv-01403
(N.D. Calif.), appeared in the Class Action Reporter on Thurs.,
Apr. 8, 2010; coverage of Carney v. Sony Corporation, et al.,
Case No. 10-cv-01406 (N.D. Calif.), appeared in the Class Action
Reporter on Fri., Apr. 10, 2010; coverage of Tabatabai v. Sony
Corporation, et al., Case No. 10-cv-01450 (N.D. Calif.), appeared
in the Class Action Reporter on Mon., Apr. 12, 2010; coverage
of Wagner v. Sony Optiarc, Inc., et al., Case No. 10-cv-01451
(N.D. Calif.), appeared in the Class Action Reporter on Mon.,
Apr. 12, 2010; coverage of Berezin v. Hitachi, Ltd., et al., Case
No. 10-cv-01533 (N.D. Calif.), appeared in the Class Action
Reporter on Wed., Apr. 14, 2010, coverage of Friedson v. Sony
Corporation, et al., Case No. 10-cv-01574 (N.D. Calif.), appeared
in the Class Action Reporter on Mon., Apr. 19, 2010; coverage of
The Stereo Shop v. Samsung Storage Technology Corp., et al., Case
No. 10-cv-01603 (N.D. Calif.), appeared in the Class Action
Reporter on Mon., Apr. 20, 2010; coverage of Garland v. Sony
Optiarc, Inc., et al., Case No. 10-cv-01703 (N.D. Calif.), Byrne
v. Sony Corporation, et al., Case No. 10-cv-01722 (N.D. Calif.),
and Daley v. Sony Optiarc, Inc., et al., Case No. 10-cv-01727
(N.D. Calif.), appeared in the Class Action Reporter on Wed.,
Apr. 28, 2010; coverage of Corse v. Sony Corporation, et al.,
Case No. 10-cv-01834 (N.D. Calif.), appeared in the Class Action
Reporter on Tues., May 4, 2010; coverage of Sinigiani v. Sony
Corporation, et al., Case No. 10-cv-01847 (N.D. Calif.), appeared
in the Class Action Reporter on Wed., May 5, 2010; coverage of
Rall v. Sony Corporation, et al., Case No. 10-cv-01933 (N.D.
Calif.), and Reia v. Sony Corporation, et al., Case No. 10-cv-
01948 (N.D. Calif.), appeared in the Class Action Reporter on
Wed., May 12, 2010.

Court records show that Sony is represented by:

          John F. Cove, Jr., Esq.
          BOIES SCHILLER & FLEXNER LLP
          1999 Harrison Street, Suite 900
          Oakland, CA 94612
          Telephone: 510-874-1000
          E-mail: jcove@bsfllp.com


SOUTHERN CONFERENCE: Accused in Ala. Suit of Violating Title IX
---------------------------------------------------------------
Tracey Dalzell Walsh at Courthouse News Service reports that in a
federal class action, four college softball players at Samford
University say The Southern Conference's "inequitable" cuts to
post-season sports championships "harms girls" and intentionally
discriminates against women, in violation of Title IX.

The Southern Conference, a Division I group, is a nonprofit
corporation that is the "official governing body" for athletics
in 12 schools.  Because the member schools receive federal aid,
the conference is subject to provisions of Title IX.

The class claims that to cut athletic budgets, the conference
limited the number of players eligible to participate in post-
season sports, resulting in a "severe(ly) disproportionate"
number of women athletes having their season cut short.

The claims that that 256 female student-athletes will stay home,
compared to just 116 male student athletes.

The class seeks declaratory judgment of sex discrimination, and
an injunction stopping The Southern Conference from making the
cuts that "burden one sex over another."

The Southern Conference includes The Citadel, Georgia Southern,
Davidson, the University of Tennessee at Chattanooga and the
University of North Carolina at Greensboro.  Samford joined the
conference on July 1, 2008.

A copy of the Complaint in Barrs, et al. v. The Southern
Conference, Case No. 10-cv-01227 (N.D. Ala.), is available at:

     http://www.courthousenews.com/2010/05/14/TitleIX.pdf

The Plaintiffs are represented by:

          Alicia K. Haynes, Esq.
          Kenneth D. Haynes, Esq.
          HAYNES & HAYNES, P.C.
          1600 Woodmere Dr.
          Birmingham, AL 35226
          Telephone: 205-879-0377
          E-mail: akhaynes@haynes-haynes.com
                  kdhaynes@haynes-haynes.com

The Southern Conference is represented by:

          Frank Steinberg, Esq.
          STEINBERG LAW OFFICES
          98 Grove St.
          Summerville, NJ 08876
          Telephone: 908-685-0600
          E-mail: fcs@lawfirmnewjersey.com


                            *********

S U B S C R I P T I O N   I N F O R M A T I O N

Class Action Reporter is a daily newsletter, co-published by
Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland
USA.  Gracele D. Canilao, Leah Felisilda, Joy A. Agravante,
Ronald Sy and Peter A. Chapman, Editors.

Copyright 2010.  All rights reserved.  ISSN 1525-2272.

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