/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/121214.mbx C L A S S A C T I O N R E P O R T E R Friday, December 14, 2012, Vol. 14, No. 248 Headlines ALLIANCE ONE: Hearings in Class Suit vs. Brazilian Unit Continue AMEDISYS INC: Defends Wage and Hour Class Suit in Connecticut AMEDISYS INC: Faces Wage and Hour Class Action Suit in Illinois AMERICAN SUPERCONDUCTOR: Consolidated Securities Suit Pending ANADIGICS INC: 3rd Cir. Affirms Dismissal of Securities Suit BANK OF AMERICA: Judge Refuses to Dismiss MBS Class Action CANADIAN TELCOS: Consumers Seek C$18-Bil. in Access Fee Claims CELESTICA INC: Likely to Appeal Class Action Limitation Period CIBER INC: Bid to Dismiss "Weston" Class Suit Remains Pending CITIGROUP INC: Awaits Approval of Interchange Fee Suit Settlement CREDIT SUISSE: Settles Mortgage Bond Class Action for $11.25 Bil. FRESHWAY FOODS: Recalls 6,671 Pounds of Out-of Date Sliced Apples FU SAN MACHINERY: Recalls 163T Low Lead Ball/Shut-Off Gas Valves GENERAL MILLS: Seeks Dismissal of Nature Valley Granola Class Suit HEALTH NET: Defend Suits Over Hard Disk Drive Loss in California IMPERIAL TOBACCO: Jeffrey Wigand Testifies in Tobacco Class Action KFORCE INC: Appeal From Calif. Suit Settlement Remains Pending LOS ANGELES RECORDING: Sued in Calif. for Defrauding Students MISTER SNACKS: Recalls 161 Cases of Sunbird Snacks Yogurt Raisins MORGAN STANLEY: Claims in "Abu Dhabi" Suit Remains Pending MORTGAGE GUARANTY: Suit Settlement Payments May Reach $500,0000 PACIFIC BIOSCIENCES: Rigrodsky & Long Files Class Action PFIZER: Faces Class Action Over Alleged Monopoly of Viagra Market SIMPSON MANUFACTURING: "Nishimura" Suit Remains Pending in Hawaii SOUTHWEST AIRLINES: Accused of Violating Credit Transaction Act ST. JUDE MEDICAL: Labaton Sucharow Files Class Action in Minn. STERLING FINANCIAL: Awaits Order on Securities Suit Dismissal Bid STERLING FINANCIAL: Awaits Ruling on Bid to Dismiss ERISA Suit TOYOTA MOTOR: Faces Class Action Over Excessive License Fees TPG CAPITAL: Faces $9-Mil. Overtime Class Action in California US AIRWAYS: Pilots Lose Class Certification Bid in Pension Suit WELLPOINT INC: Wins Summary Judgment in Insurance Class Action WELLS FARGO: Faces Class Action Over Pick-a-Payment Portfolio WING ENTERPRISES: Recalls 20,000 Switch-it Stepladder/Stepstools WOLFGANG PUCK: Workers File Overtime Class Action Asbestos Litigation ASBESTOS UPDATE: R.I. Court Grants College's Summary Judgment Bid ASBESTOS UPDATE: Ohio Court Junks Inmate's Exposure Suit ASBESTOS UPDATE: TIG Insurance's Bid for Summary Judgment Granted ASBESTOS UPDATE: Suit v. Abex Corp., et al. Stays in Rhode Island ASBESTOS UPDATE: NY Ct. Junks Tishman's Bid to Dismiss Suit ASBESTOS UPDATE: Boeing, et al., Get $20,000 in Attorneys' Fees ASBESTOS UPDATE: Crane Co.'s Bid to Dismiss Ex-Navy's Suit Junked ASBESTOS UPDATE: Foster Wheeler's Bid for Protective Order Denied ASBESTOS UPDATE: Pa. Court Grants New Trial for John Crane Inc. ASBESTOS UPDATE: Packard Plant Abatement May Take 1 Year and $10MM ASBESTOS UPDATE: NY Tenants Spent $20MM on False Fibro Alarm ASBESTOS UPDATE: Fighting in Southern Israel Releases Carcinogens ASBESTOS UPDATE: Hills, Hornsby Councils Support New Fibro Policy ASBESTOS UPDATE: Geely Voluntarily Recalls MK Units in Australia ASBESTOS UPDATE: GARDS Members, Supporters Meet at The Rose Garden ASBESTOS UPDATE: Fibro Pushes Medway Project Completion to March ASBESTOS UPDATE: Old Delphi Plants Abatement Eyed in Mid January ASBESTOS UPDATE: Norfolk Island Hopes to Ship Out 60 Tons of Fibro ASBESTOS UPDATE: Shelby School Head Stresses Montevallo Is Safe ASBESTOS UPDATE: India OKs Asbestos Onboard Aircraft ASBESTOS UPDATE: Ohio Senate Panel Passes Anti-Double-Dipping Bill ASBESTOS UPDATE: Failed Kensington Project Inspector Pleads Guilty ASBESTOS UPDATE: Fibro Warnings Around UNT Project Jolt Students ASBESTOS UPDATE: Bags of Fibro Found Under North Manitoba School ASBESTOS UPDATE: Fibro Found In Vintage Steam Engine Contained ASBESTOS UPDATE: NDP Slams Conservatives' Support on Chrysotile ASBESTOS UPDATE: Japan Must Pay JPY1.06 Billion to ARD Victims ASBESTOS UPDATE: Cleanup of Sydney's Power Substations Begins ASBESTOS UPDATE: Oak Ridge Federal Building Cleanup In January ASBESTOS UPDATE: CCS Pushes for Public Registry to Be Mandatory ASBESTOS UPDATE: School Governors Take Over Cwmcarn High School ASBESTOS UPDATE: Anti-Double-Dipping Bill Clears Ohio Senate ASBESTOS UPDATE: Ambler Project to Examine Impact of Fibro ASBESTOS UPDATE: Non-Friable Fibro Found In Glenunga Playground ASBESTOS UPDATE: Fibro Find at Cayon High School Relocates Classes ASBESTOS UPDATE: Liberty Mutual Objects to NewPage's Exit Plan ASBESTOS UPDATE: Council Assures Safety at Vaughan Primary School ASBESTOS UPDATE: Mansfield Meso Sufferer Calling Out Former Peers ASBESTOS UPDATE: Middleton Grange Center Shop Closes for Abatement ASBESTOS UPDATE: ADRI's "Betty" Visits Blacktown on Awareness Week ASBESTOS UPDATE: Suit v. Georgia Pacific, et al Proceeds to Trial ASBESTOS UPDATE: Altnagelvin Hospital Project Gets GBP1 Million ASBESTOS UPDATE: Tests Find Mold, Fibro at PS114Q in Belle Harbor ASBESTOS UPDATE: Valley High School Abatement Project Initiated ASBESTOS UPDATE: Toxic Dumper at Councilor's Home Remains Unnamed ASBESTOS UPDATE: Fibro Forces Layoff, Closure of Auction Firm ASBESTOS UPDATE: Fibro in Wakefield Theatre to be Abated January ASBESTOS UPDATE: Consett Site's Contaminated Land Risk Assessed ASBESTOS UPDATE: Ohio Senator Contests Substitute House Bill 380 ASBESTOS UPDATE: HSENI Organizes Free Training for Local Tradesmen ASBESTOS UPDATE: Shelby Officials Parents Montevallo Is Safe ASBESTOS UPDATE: Pfizer Asks SC to Bar Bankruptcy-Related Suits ASBESTOS UPDATE: State Probe Finds Hotel Angelina "Compliant" ASBESTOS UPDATE: Fanfare Lot Appraised at $77K, Sells for $2.75M ASBESTOS UPDATE: Dale Farm Traveller Site Declared As "No Go Zone" ********* ALLIANCE ONE: Hearings in Class Suit vs. Brazilian Unit Continue ---------------------------------------------------------------- Hearings with respect to the remaining claims in the class action lawsuit pending in Brazil is continuing, according to Alliance One International, Inc.'s November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. On June 6, 2008, the Company's Brazilian subsidiary and a number of other tobacco processors were notified of a class action initiated by the ALPAG - Associacao Lourenciana de Pequenos Agricultrores ("Association of Small Farmers of Sao Lourenco"). The case is currently before the 2nd civil court of Sao Lourenco do Sul. On April 20, 2012, the Company's motion to dismiss the class action was granted in part and denied in part. Hearings with respect to the remaining claims, which relate to practices regarding the weighing and grading of tobacco, commenced on June 27, 2012, and are continuing. The Company believes the remaining claims in the action to be without merit and is vigorously defending the action. Due to the broad scope of the pleading, the ultimate exposure if an unfavorable outcome is received is not estimable. Headquartered in Raleigh, North Carolina, Alliance One International Inc. -- http://aointl.com/-- is an independent leaf tobacco merchant. It provides worldwide service to the large cigarette manufacturers. It purchases tobacco in more than 45 countries and serves manufacturers of cigarettes and other consumer tobacco products in over 90 countries. The Company's revenues are primarily comprised of sales of processed tobacco and fees charged for related services to manufacturers of consumer tobacco products around the world. AMEDISYS INC: Defends Wage and Hour Class Suit in Connecticut ------------------------------------------------------------- Amedisys, Inc. is defending a wage and hour class action lawsuit in Connecticut, according to the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. On July 25, 2012, a putative collective and class action complaint was filed in the United States District Court for the District of Connecticut against the Company in which three former employees allege wage and hour law violations. The former employees claim they were paid on both a per-visit and an hourly basis, thereby misclassifying them as exempt employees and entitling them to overtime pay. The plaintiffs allege violations of Federal and state law and seek damages under the Fair Labor Standards Act ("FLSA"), as well as under the Pennsylvania Minimum Wage Act. Plaintiffs seek class certification of similar employees and seek attorneys' fees, back wages and liquidated damages going back three years under the FLSA and three years under the Pennsylvania statute. The Company says it is unable to assess the probable outcome or reasonably estimate the potential liability, if any, arising from the SEC investigation, the U.S. Department of Justice Civil Investigative Demands ("CIDs"), the Stark Law matter the Company has disclosed to The Centers for Medicare and Medicaid Services ("CMS"), the Office of Counsel to the Inspector General of the United States Department of Health and Human Services (the "OIG") Self-Disclosure issue and the securities, shareholder derivative, ERISA and wage and hour litigation given the preliminary stage of these matters. The Company intends to continue to vigorously defend itself in the securities, shareholder derivative, ERISA and wage and hour litigation matters. No assurances can be given as to the timing or outcome of the SEC investigation, the U.S. Department of Justice CIDs, the Stark Law matter the Company has disclosed to CMS, the OIG Self-Disclosure issue or the securities, shareholder derivative, ERISA and wage and hour litigation matters or the impact of any of the inquiry, investigation or litigation matters on the Company, its consolidated financial condition, results of operations or cash flows, which could be material, individually or in the aggregate. The Company recognizes that additional putative securities class action complaints and other litigation could be filed, and that other investigations and actions could be commenced, relating to matters involving the Company's home therapy visits and therapy utilization trends or other matters. Amedisys, Inc. -- http://www.amedisys.com/-- is one of America's leading home health and hospice companies. The Company is headquartered in Baton Rouge, Louisiana. AMEDISYS INC: Faces Wage and Hour Class Action Suit in Illinois --------------------------------------------------------------- Amedisys, Inc. is facing a wage and hour class action lawsuit in Illinois, according to the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. On September 13, 2012, a putative collective and class action complaint was filed in the United States District Court for the Northern District of Illinois against the Company in which a former employee alleges wage and hour law violations. The former employee claims she was paid on both a per-visit and an hourly basis, thereby misclassifying her as an exempt employee and entitling her to overtime pay. The plaintiff alleges violations of Federal and state law and seeks damages under the Fair Labor Standards Act ("FLSA") and the Illinois Minimum Wage Law. Plaintiff seeks class certification of similar employees who were or are employed in Illinois and seeks attorneys' fees, back wages and liquidated damages going back three years under the FLSA and three years under the Illinois statute. The Company says it is unable to assess the probable outcome or reasonably estimate the potential liability, if any, arising from the SEC investigation, the U.S. Department of Justice Civil Investigative Demands ("CIDs"), the Stark Law matter the Company has disclosed to The Centers for Medicare and Medicaid Services ("CMS"), the Office of Counsel to the Inspector General of the United States Department of Health and Human Services (the "OIG") Self-Disclosure issue and the securities, shareholder derivative, ERISA and wage and hour litigation given the preliminary stage of these matters. The Company intends to continue to vigorously defend itself in the securities, shareholder derivative, ERISA and wage and hour litigation matters. No assurances can be given as to the timing or outcome of the SEC investigation, the U.S. Department of Justice CIDs, the Stark Law matter the Company has disclosed to CMS, the OIG Self-Disclosure issue or the securities, shareholder derivative, ERISA and wage and hour litigation matters or the impact of any of the inquiry, investigation or litigation matters on the Company, its consolidated financial condition, results of operations or cash flows, which could be material, individually or in the aggregate. The Company recognizes that additional putative securities class action complaints and other litigation could be filed, and that other investigations and actions could be commenced, relating to matters involving the Company's home therapy visits and therapy utilization trends or other matters. Amedisys, Inc. -- http://www.amedisys.com/-- is one of America's leading home health and hospice companies. The Company is headquartered in Baton Rouge, Louisiana. AMERICAN SUPERCONDUCTOR: Consolidated Securities Suit Pending ------------------------------------------------------------- A consolidated securities class action lawsuit arising from American Superconductor Corporation's securities offering remains pending, according to the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. Between April 6, 2011, and May 12, 2011, seven putative securities class action complaints were filed against the Company and two of its officers in the United States District Court for the District of Massachusetts; one complaint additionally asserted claims against the underwriters who participated in the Company's November 12, 2010 securities offering. On June 7, 2011, the United States District Court for the District of Massachusetts consolidated these actions under the caption Lenartz v. American Superconductor Corporation, et al., Docket No. 1:11-cv-10582-WGY. On August 31, 2011, Lead Plaintiff, the Plumbers and Pipefitters National Pension Fund, filed a consolidated amended complaint against the Company, its officers and directors, and the underwriters who participated in the Company's November 12, 2010 securities offering, asserting claims under sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), as well as under sections 11, 12(a)(2) and 15 of the Securities Act of 1933 (the "Securities Act"). The complaint alleges that during the relevant class period, the Company and its officers omitted to state material facts and made materially false and misleading statements relating to, among other things, its projected and recognized revenues and earnings, as well as its relationship with Sinovel Wind Group Co., Ltd. that artificially inflated the value of the Company's stock price. The complaint further alleges that the Company's November 12, 2010 securities offering contained untrue statements of material facts and omitted to state material facts required to be stated therein. The plaintiffs seek unspecified damages, rescindment of the Company's November 12, 2010 securities offering, and an award of costs and expenses, including attorney's fees. All defendants moved to dismiss the consolidated amended complaint. On December 16, 2011, the district court issued a summary order declining to dismiss the Securities Act claims against the Company and its officers, and taking under advisement the motion to dismiss the Exchange Act claims against the Company and its officers and the motion to dismiss the Securities Act claims made against the underwriters. On July 26, 2012, the district court dismissed the Exchange Act claims against the Company and its officers and denied the motion to dismiss the Securities Act claims made against the underwriters. With respect to the litigation matter, the Company says an estimate of loss or range of loss cannot be made. There are numerous factors that make it difficult to meaningfully estimate possible loss or range of loss at this stage of these litigation matters, including that: the proceedings are in relatively early stages, there are significant factual and legal issues to be resolved, information obtained or rulings made during the lawsuits could affect the methodology for calculation of rescission and the related statutory interest rate. In addition, with respect to claims where damages are the requested relief, no amount of loss or damages has been specified. Therefore, the Company is unable at this time to estimate possible losses. The Company believes that these litigations are without merit, and it intends to defend the action vigorously. Therefore, no adjustment has been made to the financial statements to reflect the outcome of these uncertainties. ANADIGICS INC: 3rd Cir. Affirms Dismissal of Securities Suit ------------------------------------------------------------ An appellate court affirmed in October 2012 the dismissal of a consolidated securities class action lawsuit against ANADIGICS, Inc., according to the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 29, 2012. On or about November 11, 2008, plaintiff Charlie Attias filed a putative securities class action lawsuit in the United States District Court for the District of New Jersey, captioned Charlie Attias v. Anadigics, Inc., et al., No. 3:08-cv-05572, and, on or about November 21, 2008, plaintiff Paul Kuznetz filed a related class action lawsuit in the same court, captioned Paul J. Kuznetz v. Anadigics, Inc., et al., No. 3:08-cv-05750 (jointly, the "Class Actions"). The Complaints in the Class Actions, which were consolidated under the caption In re Anadigics, Inc. Securities Litigation, No. 3:08-cv-05572, by an Order of the District Court dated November 24, 2008, sought unspecified damages for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Rule 10b-5 promulgated thereunder, in connection with alleged misrepresentations and omissions in connection with, among other things, Anadigics's manufacturing capabilities and the demand for its products. On October 23, 2009, plaintiffs filed a Consolidated Amended Class Action Complaint, (the "First Amended Complaint"), which named the Company, a current officer and a former officer-director, and alleged a proposed class period running from July 24, 2007 through August 7, 2008. On December 23, 2009, defendants filed a motion to dismiss the First Amended Complaint. After holding extensive oral argument on defendants' motion, the District Court found plaintiffs' First Amended Complaint to be deficient, but afforded them another opportunity to amend their pleading. The District Court therefore denied defendants' motion to dismiss without prejudice to defendants' renewing the motion in response to plaintiffs' Second Amended Complaint, which plaintiffs filed on October 4, 2010. The Second Amended Complaint, which contained the same substantive claims that were alleged in the First Amended Complaint, alleged a proposed class period running from Feb. 12, 2008, through August 7, 2008. Defendants filed a motion to dismiss the Second Amended Complaint on December 3, 2010. By an Opinion and an Order dated September 30, 2011, the District Court dismissed with prejudice plaintiffs' Second Amended Complaint. Shortly thereafter, plaintiffs appealed the District Court's Opinion and Order to the United States Court of Appeals for the Third Circuit. On October 17, 2012, following briefing and argument, the Court of Appeals affirmed the District Court's dismissal with prejudice of plaintiffs' claims. It is not known whether plaintiffs will seek further appellate review. BANK OF AMERICA: Judge Refuses to Dismiss MBS Class Action ---------------------------------------------------------- The Litigation Daily reports that a federal judge has refused to dismiss a case brought against Bank of America and U.S. Bancorp on behalf of investors who lost billions in Washington Mutual's collapse. But things might have gone very differently for the defendants if not for a pair of rulings earlier this year favoring mortgage-backed securities investors in separate suits against Goldman Sachs and Bank of New York Mellon. CANADIAN TELCOS: Consumers Seek C$18-Bil. in Access Fee Claims -------------------------------------------------------------- According to Heenan Blaikie LLP, a class action involving nearly half the population of Canada (14 million cellphone subscribers) and a claim of, reportedly, C$18 billion will be proceeding against six telephone companies -- both large and small ("Telcos"). The issue? The plaintiffs contend that the Telcos misled consumers into thinking that the monthly system "access fee" charged (usually in the neighborhood of C$6.95 - C$8.95 per month) was a government fee when it was actually a fee imposed by, and with the revenue going to, the Telcos. The lawsuit has been involved in procedural hearings for about eight years, but will now be heard on its merits. Commenced in 2004, the class action was originally certified in Saskatchewan in 2007. That set off a round of appeals of the certification -- first to the Court of Appeal for Saskatchewan, and then to the Supreme Court of Canada. On June 28 of this year, the Supreme Court said it would not hear the Telcos' appeal, meaning the certification would stand and the action could proceed. What now? The case goes back to the Court of Queen's Bench for Saskatchewan, which will adjudicate the substance of the claim. The plaintiffs are asking for the return of an estimated C$12 billion in access fees, plus interest, bringing the claim up to an earthshaking C$18 billion -- or approximately C$600 to C$700 per customer. CELESTICA INC: Likely to Appeal Class Action Limitation Period -------------------------------------------------------------- Julius Melnitzer, writing for Financial Post, reports that what the courts giveth, the courts taketh away or at least that's how class action defendants must be feeling after an Ontario court ruled in October that it had discretion to grant relief to plaintiffs against whom limitation periods had expired in secondary market securities class actions brought under the Ontario Securities Act. "It may be that a three-year limitation period is not sufficient given the complexities of the litigation process," says Larry Lowenstein, who represents class action defendants in Osler, Hoskin & Harcourt LLP's Toronto office. "But the proper remedy for a legislative measure that is not working is a legislative amendment." Adding salt to the wound, Justice Paul Perell's ruling, in a case alleging that Celestica Inc. and two of its former officers made representations about the company's restructuring between 2005 and 2007, is in direct contrast to Justice George Strathy's holding several months earlier that the court had no discretion to grant such relief to plaintiffs who had sued CIBC in a separate secondary market case. Justice Perell held that a legal doctrine known as special circumstances, which extends limitation periods where the interests of justice so require and there is no prejudice to defendants apart from having to defend the actions, applied to secondary market cases. In Celestica, such prejudice did not exist because the defendants had been aware of the claims since 2007 and had been defending parallel claims in the US since then. For his part, Justice Strathy ruled that the principle did not apply to secondary market cases, but added that he would have extended the limitation period on the facts had he found that the doctrine was applicable. Justice Perell's ruling significantly dilutes the hard-line approach taken by the Ontario Court of Appeal in a seminal case involving Timminco Ltd. The Court ruled that plaintiffs must bring securities class action within three years of the alleged misrepresentation. Because these cases require leave of the court before they can be commenced, the Timminco case created serious problems for plaintiffs who only discovered the misrepresentation well into the three-year period and then had to encounter the vagaries of a notoriously slow litigation process. "If relief is not available when courts do not have adequate resources to deal with leave applications expeditiously, defendants will have an extraordinary economic incentive to delay the proceedings," says Dimitri Lascaris, who represents plaintiffs in Siskinds LLP's London, Ont. office. Indeed, as Justice Perell saw it, the Legislature "did not intend to sacrifice access to justice on the altar of expeditiousness." He noted that the special circumstances doctrine was developed to "ameliorate the rigors of an absolute limitation period in appropriate circumstances." Still, Mr. Lowenstein says that he does not regard Celestica as opening the floodgates. "Justice Perell recognized that the special circumstances doctrine is principled and narrow," he says. "It comes down to an inquiry as to whether the plaintiffs, by initiating the litigation within the limitation period albeit not obtaining leave within that period, have put the defendants on proper notice to avoid prejudice." Kirk Baert, who represents plaintiffs in class actions at Koskie Minsky LLP in Toronto, says that the debate over extending the limitation period was inevitable. "It shows that the original rulings that the three-year limitation continued to run until leave was actually obtained made no sense," he says. "So now we have to deal with a whole new area of law that makes complicated proceedings even more unnecessarily complicated." As it turns out, the Court of Appeal will soon have an opportunity to deal with the issue. The court has listed Justice Strathy's decision in CIBC to be argued with a case involving IMAX, in which Justice Katherine van Rensburg backdated a leave order in a case where the leave application had been argued but not decided before the limitation period expired. It's also likely that the defendants in Celestica will be seeking leave to appeal, and if that application is granted, the three cases may be heard together early in 2013. CIBER INC: Bid to Dismiss "Weston" Class Suit Remains Pending ------------------------------------------------------------- Ciber, Inc. and other defendants' motion to dismiss a securities class action lawsuit remains pending, according to the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. On October 28, 2011, a putative securities class action lawsuit, Weston v. Ciber, Inc. et al., was filed in the United States District Court for the District of Colorado against Ciber, its current Chief Executive Officer David C. Peterschmidt, current Executive Vice President and Chief Financial Officer ("CFO") Claude J. Pumilia and former CFO Peter H. Cheesbrough (the "Class Action"). The Class Action purports to have been filed on behalf of all holders of Ciber common stock between December 15, 2010, and August 3, 2011, by alleged stockholder and plaintiff, Burt Weston. The Class Action generally alleges that defendants Ciber, Mr. Peterschmidt, Mr. Pumilia and Mr. Cheesbrough (the "Class Action Defendants") violated Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Securities and Exchange Commission ("SEC") Rule 10b-5. Specifically, the complaint alleges that the Class Action Defendants disseminated or approved alleged false statements concerning the Company's outlook and forecast for fiscal year 2011 in: (1) the Company's 8-K filed with the SEC and press conference held with investors on December 15, 2010; (2) the Company's press release and earnings conference call on February 22, 2011; (3) the Company's 10-K for fiscal year 2010 filed with the SEC on February 25, 2011; and (4) the Company's press release, earnings conference call, and Form 10-Q for first quarter 2011 filed with the SEC on May 3, 2011. The complaint also generally alleges that the Class Action Defendants violated Section 20(a) of the Exchange Act. Specifically, the complaint alleges that the Class Action Defendants acted as controlling persons of Ciber within the meaning of Section 20(a) of the Exchange Act by reason of their positions with the Company. The Class Action seeks, among other things: (1) an order from the Court declaring the complaint to be a proper class action pursuant to Rule 23 of the Federal Rules of Civil Procedure and certifying plaintiff as a representative of the purported class; (2) awarding plaintiff and the members of the class damages, including interest; (3) awarding plaintiff reasonable costs and attorneys' fees; and (4) awarding such other relief as the Court may deem just and proper. The Court appointed Mr. Weston and City of Roseville Employees' Retirement System as lead plaintiffs and the law firms of Robbins, Geller Rudman & Dowd LLP and Robbins Umeda LLP as lead plaintiffs' counsel on January 31, 2012. Lead Plaintiffs filed an amended complaint in early April 2012. The Class Action Defendants have filed a motion to dismiss, which is currently pending. The Company believes that the Class Action is without merit and intends to defend against it vigorously. There can, however, be no assurance of the outcome of these actions. Ciber, Inc. -- http://www.ciber.com/-- together with its subsidiaries, provides information technology (IT), business consulting, and outsourcing services in North America, Europe, and the Asia/Pacific. It offers its solutions to energy and utilities, telecommunications, retail, healthcare, financial services, entertainment, and manufacturing industries. The Company was founded in 1974 and is headquartered in Greenwood Village, Colorado. CITIGROUP INC: Awaits Approval of Interchange Fee Suit Settlement ----------------------------------------------------------------- Citigroup Inc. is awaiting court approval of its settlement of a consolidated lawsuit over card interchange fees, according to the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. Beginning in 2005, several putative class actions were filed against Citigroup Inc. and its affiliates and subsidiaries and current and former officers, directors and employees, collectively referred to as Citigroup and Related Parties, together with Visa, MasterCard and other banks and their affiliates, in various federal district courts. These actions were consolidated with other related cases in the Eastern District of New York and captioned IN RE PAYMENT CARD INTERCHANGE FEE AND MERCHANT DISCOUNT ANTITRUST LITIGATION. The plaintiffs in the consolidated class action are merchants that accept Visa- and MasterCard-branded payment cards, as well as membership associations that claim to represent certain groups of merchants. The pending complaint alleges, among other things, that defendants have engaged in conspiracies to set the price of interchange and merchant discount fees on credit and debit card transactions in violation of Section 1 of the Sherman Act. The complaint also alleges additional Sherman Act and California law violations, including alleged unlawful maintenance of monopoly power and alleged unlawful contracts in restraint of trade pertaining to various Visa and MasterCard rules governing merchant conduct (including rules allegedly affecting merchants' ability, at the point of sale, to surcharge payment card transactions or steer customers to particular payment cards). In addition, supplemental complaints filed against defendants in the class action allege that Visa's and MasterCard's respective initial public offerings were anticompetitive and violated Section 7 of the Clayton Act, and that MasterCard's initial public offering constituted a fraudulent conveyance. Plaintiffs seek injunctive relief as well as joint and several liability for treble their damages, including all interchange fees paid to all Visa and MasterCard members with respect to Visa and MasterCard transactions in the U.S. since at least January 1, 2004. Certain publicly available documents estimate that Visa- and MasterCard-branded cards generated approximately $40 billion in interchange fees industry wide in 2009. Defendants dispute that the manner in which interchange and merchant discount fees are set, or the rules governing merchant conduct, are anticompetitive. Fact and expert discovery has closed. Defendants' motions to dismiss the pending class action complaint and the supplemental complaints are pending. Also pending are plaintiffs' motion to certify nationwide classes consisting of all U.S. merchants that accept Visa- and MasterCard-branded payment cards and motions by both plaintiffs and defendants for summary judgment. The parties have been engaged in mediation for several years, including recent settlement conferences held at the direction of the court. Additional information relating to these consolidated actions is publicly available in court filings under the docket number MDL 05-1720 (E.D.N.Y.) (Gleeson, J.). On July 13, 2012, all parties to the putative class actions, including Citigroup and Related Parties, entered into a Memorandum of Understanding (MOU) setting forth the material terms of a class settlement. The settlement described in the MOU is subject to a number of conditions, including agreement on definitive documentation of the settlement, any necessary approvals by the boards of directors of the parties, defendants' entry into settlement agreements with certain merchants that have filed separate individual actions against the Visa and MasterCard networks, and preliminary and final approval by the court. The class settlement contemplated by the MOU provides for, among other things, a total payment by all defendants to the class of $6.05 billion; a rebate to merchants participating in the class settlement of 10 basis points on interchange collected for a period of eight months by the Visa and MasterCard networks; changes to certain network rules that would permit merchants to surcharge some payment card transactions subject to certain limitations and conditions, including disclosure to consumers at the point of sale; and broad releases in favor of the defendants. The Boards of Directors of Citigroup and Citibank have approved the settlement. The court has ordered the parties to file definitive documentation of the settlement with the court for preliminary approval no later than October 19, 2012. On October 19, 2012, the class plaintiffs in the putative class actions filed the parties' settlement agreement with the court as part of a motion for preliminary approval of the settlement. A preliminary approval hearing was scheduled for November 9, 2012. Visa and MasterCard also entered into a settlement agreement with the merchants that filed individual, non-class actions. While Citigroup and Related Parties are not parties to the individual merchant non-class settlement agreement, they are contributing to that settlement, and the agreement provides for a release of claims against Citigroup and Related Parties. CREDIT SUISSE: Settles Mortgage Bond Class Action for $11.25 Bil. ----------------------------------------------------------------- Brian Mahoney, writing for Law360, reports that a group of financial institutions -- including Credit Suisse Securities (USA) LLC, RBS Securities Inc. and Greenwich Capital Acceptance Inc. -- agreed to pay $11.25 million in New Mexico federal court on Dec. 7 to settle a securities class action alleging they misled investors about $5 billion in risky mortgage bonds issued by now-defunct Thornburg Mortgages Inc. The settlement ends allegations claiming the institutions prepared and issued false and misleading registration statements, prospectuses and prospectus supplements in connection with the sale of certain mortgage loan pass-through certificates. FRESHWAY FOODS: Recalls 6,671 Pounds of Out-of Date Sliced Apples ----------------------------------------------------------------- Freshway Foods is voluntarily recalling 6,671 pounds of sliced apples that were packaged on November 12 using the same packaging machine, which may have been contaminated with Listeria monocytogenes. A table of recalled consumer pack products, their respective use-by-dates and the states to which the company shipped them is provided below. No illnesses have been linked to this recall. Listeria monocytogenes is an organism that can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems. Healthy individuals may suffer only short-term symptoms such as high fever, severe headache, stiffness, nausea, abdominal pain and diarrhea. Listeria infection can cause miscarriages and stillbirths among pregnant women. December 8, 2012 Freshway Foods Voluntary Recall of Sliced Apples (Information to assist consumers identify recalled products) Individual Product Consumer UPC Number Use by Date Description Package Size ---------- ----------- ----------- ------------ N/A 11/30/2012 RED APPLE SLICE 2.4 OZ 2.4 OZ. SONICS States to which Freshway Foods shipped the product: Alabama, Florida, Georgia, Kentucky, New York, Tennessee, Wisconsin 95829 20000 12/03/2012 RED APPLE SLICE 14 OZ and 12/6/2012 14 OZ. MOTTS INNERLOCK BAG States to which Freshway Foods shipped the product: Florida, Georgia, North Carolina 95829 20042 12/03/2012 GREEN APPLE SLICE 14 OZ 14 OZ. MOTTS States to which INNERLOCK BAG Freshway Foods shipped the product: North Carolina Pictures of the recalled products are available at: http://www.fda.gov/Safety/Recalls/ucm331651.htm Freshway is advising consumers who may have the out-of-date product to not consume it and discard it. This voluntary recall was initiated after a single, routine and random retail sample of sliced green apple product taken by the North Carolina Department of Agriculture & Consumer Services tested positive for the bacteria. Freshway Foods is also keeping the U.S. Food and Drug Administration informed of its recall process. In compliance with federal food safety regulations and guidelines, Freshway cleans and sanitizes its equipment daily to proactively minimize potential problems. Freshway Foods is notifying retail customers and food service distributors who received the recalled product directly from the company and requesting that they remove from commerce any of the expired products that they still have in inventory. As an extra precautionary measure the Company is also asking its direct customers to notify their customers of this recall. "Although there are no illnesses related to this recall and the out-of-date recalled product is likely no longer available in the marketplace, Freshway Foods is issuing this precautionary voluntary recall because we are committed to our customers and the well-being of the consumers who enjoy our products every day," said Phil Gilardi, president of Freshway Foods. "We follow industry and federal food safety regulations and guidelines, and are working to carry out this recall in an effective and efficient manner in order to reduce even the slightest risk to public health." Consumers with questions may call Freshway Foods' information desk at 1-855-775-3259 (8:00 a.m. - 5:00 p.m. Eastern Time, Monday - Friday) or visit the Company's Web site for a copy of this news release at http://www.freshwayfoods.com/ FU SAN MACHINERY: Recalls 163T Low Lead Ball/Shut-Off Gas Valves ---------------------------------------------------------------- The U.S. Consumer Product Safety Commission, in cooperation with manufacturer, Fu San Machinery Co. Ltd., of Taiwan, and importers/distributors -- Aqualine, of Corona, California; AY McDonald Manufacturing Co., of Dubuque, Iowa; FNW, of Portland, Oregon; Hodes Co., of Kansas City, Missouri; Legend, of Auburn Hills, Michigan; Leonard Valve, of Cranston, Rhode Island and Mueller of Memphis, Tennessee, announced a voluntary recall of about 163,000 Low Lead Ball Valve/Shut-Off Gas Valves. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product. The valves can crack and cause gas to leak. This poses fire and explosion hazards. No incidents or injuries have been reported. This recall involves seven brands of sweat and threaded, low lead ball valves used in flammable gas piping systems used in commercial or residential settings. They are brass shut-off valves assembled with pipe lines of 3/4 inch and 1 inch and have a date code 1103 through 1112, in YYMM format, where YY is the year and MM is the month. The date code is located under the valve handle. The pipe size is marked on the body of the valve. Fu San's logo and the "O" marking designated for low lead valves are marked on the valves' neck under where the handle assembles. The word "Taiwan" appears on the handle as a country of origin marking. The valves were sold under the following brand names and model numbers: Valve Dimensions/ Brand Name Model Number Sweat or Threaded Valves ---------- ------------ ------------------------ Aqualine BBV-075-LF 3/4 inch/Threaded Aqualine BBV-075S-LF 3/4 inch/Sweat Aqualine BBV-100-LF 1 inch/Threaded Aqualine BBV-100S-LF 1 inch/Sweat AY McDonald 72032S 3/4 inch/Sweat AY McDonald 72032T 3/4 inch/Threaded FNW FNWX410AF 3/4 inch/Threaded FNW FNWX410AG 1 inch/Threaded FNW FNWX411F 3/4 inch/Sweat FNW FNWX411G 1 inch/Sweat Hodes Co. 40-642 1 inch/Threaded Hodes Co. 40-662 1 inch /Threaded Hodes Co. 40-677 3/4 inch/Sweat Hodes Co. 40-687 3/4 inch/Sweat Hodes Co. 40-678 1 inch/Sweat Hodes Co. 40-688 1 inch/Sweat Legend T1002NL 1 inch/Threaded Leonard Valve 83503 3/4 inch/Sweat Leonard Valve 83504 1 inch/Sweat Leonard Valve 83538 3/4 inch/Threaded Leonard Valve 83539 1 inch/Threaded Mueller 107-844NL 3/4 inch/Sweat Pictures of the recalled products are available at: http://www.cpsc.gov/cpscpub/prerel/prhtml13/13064.html The recalled products were manufactured in Taiwan and sold by Fu San Machinery directly to seven distributors nationwide from April 2011 through January 2012 for between $13 and $20. Consumers should turn off the gas supply until a replacement gas valve has been professionally installed. Consumers should contact Danville Sales which, on behalf of Fu San Machinery, will provide compensation of $300 to reimburse customers for costs incurred to remove and return the valve and for purchasing and installing a replacement valve. The affected valve should be returned to the Danville Sales Office for Fu San Machinery with a photo depicting the valve in the gas line before removal and showing the date code on the valve, along with the address and details of the location where the valve was installed. The requested information, the recalled valve, and the consumer name and address should be sent to the address in the Consumer Contact paragraph. Upon receipt, Fu San will reimburse customers in the amount of $300. Danville Sales Office for Fu San Machinery may be reached at 1101 N. Kings Hwy, in Cherry Hill, New Jersey 08034; toll-free at (855) 779- 9200, from 9:00 a.m. to 5:00 p.m. Eastern Time Monday through Friday, or online at http://www.fsvalve.com.tw/,then click on the Safety Recall Notice button for more information. GENERAL MILLS: Seeks Dismissal of Nature Valley Granola Class Suit ------------------------------------------------------------------ Rebekah Kaufman, writing for Morrison & Foerster, reports that General Mills recently filed a motion to dismiss a putative class action accusing the company of falsely advertising its popular Nature Valley granola products as "100% natural." Chin et al. v. General Mills, Inc., Case No. 12-cv-2150-MJD-TML (D. Minn.). The crux of plaintiffs' claims is that the granola is not "100% natural" because it contains high-fructose corn syrup, high- maltose corn syrup, and/or maltodextrin. In its motion, General Mills first takes plaintiffs to task for junk science: "Plaintiffs' theory of liability is premised on their distinction between processed and highly processed corn. Cornstarch is itself processed. It does not grow out of the ground, but is created through the process of milling. But milling, in Plaintiffs' view, does not produce a 'non-natural' ingredient. It is the additional step of treating the cornstarch with enzymes that Plaintiffs assert crosses the threshold from processed to 'highly processed,' and from natural to non-natural. The Complaint does not cite any scientific authority for this distinction." General Mills then points to its ingredient list, arguing that because plaintiffs' claims rely on the front of the product packaging, the court can take notice of the rest of the packaging as well. Significantly, the ingredient list clearly lists each of the offending ingredients for all consumers to see. Whether that argument will be sufficient to win the day remains to be seen. Other courts have rejected similar arguments. General Mills also argued that the plaintiffs lack Article III standing to sue over products they never purchased. HEALTH NET: Defend Suits Over Hard Disk Drive Loss in California ---------------------------------------------------------------- Health Net, Inc. continues to defend itself against lawsuits arising from the loss of hard disk drives that had been used in its data center, according to the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. The Company is a defendant in three related litigation matters pending in California state and federal courts relating to information security issues. On January 21, 2011, International Business Machines Corp. (IBM), which handles the Company's data center operations, notified the Company that it could not locate several hard disk drives that had been used in the Company's data center located in Rancho Cordova, California. The Company has since determined that personal information of approximately two million former and current Health Net members, employees and health care providers is on the drives. Commencing on March 14, 2011, the Company provided written notification to the individuals whose information is on the drives. To help protect the personal information of affected individuals, the Company offered them two years of free credit monitoring services, in addition to identity theft insurance and fraud resolution and restoration of credit files services, if needed. On March 18, 2011, a putative class action relating to this incident was filed against the Company in the U.S. District Court for the Central District of California (the Central District of California), and similar actions were later filed against the Company in other federal and state courts in California. A number of those actions were transferred to and consolidated in the U.S. District Court for the Eastern District of California (the Eastern District of California), and the two remaining actions are currently pending in the Superior Court of California, County of San Francisco (San Francisco County Superior Court) and the Superior Court of California, County of Sacramento (Sacramento County Superior Court). The consolidated amended complaint in the federal action pending in the Eastern District of California was filed on behalf of a putative class of over 800,000 of the Company's current or former members who received the written notification, and also named IBM as a defendant. It sought to state claims for violation of the California Confidentiality of Medical Information Act and the California Customer Records Act, and sought statutory damages of up to $1,000 for each class member, as well as injunctive and declaratory relief, attorneys' fees and other relief. On August 29, 2011, the Company filed a motion to dismiss the consolidated complaint. On January 20, 2012, the district court issued an order dismissing the consolidated complaint on the grounds that the plaintiffs lacked standing to bring their action in federal court. On April 20, 2012, an amended complaint with a new plaintiff was filed against the Company, but no longer asserted claims against IBM. The amended complaint asserted the same causes of action and sought the same relief as the earlier complaint. On June 18, 2012, the Company filed a motion to dismiss the amended complaint, which is currently pending. An additional lawsuit was instituted on July 7, 2011, in the Superior Court of California, County of Riverside and was brought on behalf of a putative nationwide class of all former and current members affected by this incident, and sought to state similar claims against the Company, as well as a claim for invasion of privacy. The Company removed this case to the Central District of California on August 1, 2011. On August 26, 2011, the plaintiff filed a motion to remand the case to state court. That motion was granted on September 30, 2011. On October 10, 2011, the Company filed an application for leave to appeal the remand order to the United States Court of Appeals for the Ninth Circuit. On January 30, 2012, the Court of Appeals granted the motion for leave to appeal and ordered the parties to submit briefs. On March 20, 2012, the Court of Appeals issued an opinion reversing the district court's ruling and instructing the district court to review the motion to remand in accordance with the Court of Appeals' opinion. Following the issuance of that opinion, the Company filed a request with the district court seeking to have the case transferred to the Eastern District of California to be assigned to the same judge handling the other lawsuit in that court. That request was granted and the matter was ordered to be transferred on May 1, 2012. On June 8, 2012, the judge handling the lawsuit in the Eastern District of California ordered that this case be consolidated with the lawsuit currently pending in that court. The San Francisco County Superior Court proceeding was instituted on March 28, 2011, and is brought on behalf of a putative class of California residents who received the written notification, and seeks to state similar claims against the Company, as well as claims for violation of California's Unfair Competition Law, and seeks similar relief. The Company moved to compel arbitration of the two named plaintiffs' claims. The court granted the Company's motion as to one of the named plaintiffs and denied it as to the other. The Company is appealing the latter ruling. Thereafter, the plaintiff as to whom the Company's motion to compel arbitration was granted filed an application for a writ of mandate with the California Court of Appeal seeking review of that ruling, which writ was ultimately granted. The Company filed a petition for review by the California Supreme Court, which was denied, and on July 9, 2012, the Court of Appeal issued a peremptory writ of mandate directing the Superior Court to vacate its order granting the motion to compel arbitration and to enter an order denying the motion to compel. The Sacramento County Superior Court proceeding was instituted on April 3, 2012, and is brought on behalf of a putative class of California members whose information was contained on the unaccounted for drives. The action was filed by many of the same plaintiffs' lawyers, contains the same claims, and seeks the same relief as the case pending in the Eastern District of California. On June 18, 2012, the Company filed a demurrer seeking dismissal of this complaint, which is currently pending. The Company has also been informed that a number of regulatory agencies are investigating the incident, including the California Department of Managed Health Care (DMHC), the California Department of Insurance, the California Attorney General, the Massachusetts Office of Consumer Affairs and Business Regulation and the Office of Civil Rights of the U.S. Department of Health and Human Services. The Company says it intends to vigorously defend itself against these claims; however, these proceedings are subject to many uncertainties. At this time, the Company cannot reasonably estimate the range of loss that may result from these legal and regulatory proceedings in light of the facts that (i) legal and regulatory proceedings are inherently unpredictable, (ii) there are multiple parties in each of the disputes (and uncertainty as to how liability, if any, may be shared among the defendants), (iii) the proceedings are in their early stages and discovery is not complete, (iv) there are significant facts in dispute, (v) the matters present legal uncertainties, (vi) there is a wide range of potential outcomes in each dispute and (vii) there are various levels of judicial review available to the Company in each matter in the event damages are awarded or fines or penalties are assessed. Nevertheless, an adverse resolution of or development in the proceedings could have a material adverse effect on the Company's financial condition, results of operations, cash flow and liquidity and could affect its reputation. Health Net, Inc. -- http://www.healthnet.com/-- through its subsidiaries, provides managed health care services. The Company offers commercial health care products, such as health maintenance organization plans through contracts with participating network physicians, hospitals, and other providers; preferred provider organization plans that provide coverage for services received from health care provider; and point of service plans. It also provides Medicare products. It serves approximately 6.0 million individuals in the United States through group, individual, Medicare, Medicaid, the U.S. Department of Defense that includes TRICARE, and Veterans Affairs programs. The Company was founded in 1979 and is headquartered in Woodland Hills, California. IMPERIAL TOBACCO: Jeffrey Wigand Testifies in Tobacco Class Action ------------------------------------------------------------------ CBC News reports that Jeffrey Wigand, who blew the whistle on the U.S. tobacco industry in 1993 in a move that inspired an award- winning Hollywood film, told a Montreal court on Dec. 10 that cigarette companies were underplaying the product's potential health risks. Mr. Wigand was in Quebec Superior Court on Dec. 10 as part of a C$27-billion class-action lawsuit against Canada's three biggest cigarette companies. Mr. Wigand, a former chief tobacco scientist at Brown and Williamson Tobacco in Louisville, Ky., is testifying in the case, which pits the cigarette companies against groups representing 1.8 million smokers in Quebec. It's considered the biggest class-action lawsuit in Canadian history, and it is the first time tobacco companies have gone to trial in a civil suit in Canada. A group of people who have become seriously ill from smoking and a separate group of people who say they are unable to quit are being heard together. Both groups allege Imperial Tobacco, JTI MacDonald and Rothmans Benson & Hedges did everything possible to encourage addiction and are seeking a C$27-billion settlement. Mr. Wigand testified that within three months of joining Brown and Williamson in 1989, he became aware of some contradictions in the messages broadcast by the company. He said scientists working for the firms knew of the health risks associated with tobacco. However, Mr. Wigand said, the industry would engage in what he called "creating friction" about the scientific understanding with the public. Mario Bujold, head of one of the anti-tobacco groups in the lawsuit, said the spin doctrine went on for decades. "They decide to hire people and research to find data that could help them give that message that smoking wasn't dangerous," he said. Mr. Wigand told Quebec Superior Court that the industry engaged in obfuscation, criticism and denial of the facts. He said he was under the impression he was hired to help develop a safer cigarette -- which meant Brown and Williamson was aware smoking caused health risks. Mr. Wigand's testimony is expected to wrap up on Wednesday. Mr. Wigand blew the whistle on the U.S. tobacco industry in 1993 when he told CBS's 60 Minutes producer Lowell Bergman that tobacco companies were concealing some of the health risks of cigarettes. He was asked to testify at a lawsuit against five large U.S. companies. The lawsuit culminated with a landmark C$368-billion settlement between tobacco companies and state governments in the U.S., as well as individual victims of smoking. The cigarette companies, including the parent company of Canada's Imperial Tobacco, Britain-based BATCO, were told to hand over documents relating to their research and processes in creating the addictive product. Mr. Wigand's testimony and expertise inspired The Insider, starring Al Pacino and Russell Crowe. At the time, the jury taking part in the Florida lawsuit were ordered not to watch The Insider after the lawyer representing Brown and Williamson Tobacco claimed it could sway the vote. KFORCE INC: Appeal From Calif. Suit Settlement Remains Pending -------------------------------------------------------------- An appeal from the approval of Kforce Inc.'s settlement of a class action lawsuit in California remains pending, according to the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. Kforce was a defendant in a California class action lawsuit alleging misclassification of California Account Managers and seeking unspecified damages. A tentative settlement was approved by the California court during the three months ended June 30, 2011, in the amount of $2,526,000 which is recorded within accounts payable and other accrued liabilities in the accompanying unaudited condensed consolidated balance sheet as of September 30, 2012, and December 31, 2011. Consummation of the settlement is subject to resolution of an appeal, which the Company believes to be without merit, brought by a non-party to the lawsuit. Kforce Inc. and subsidiaries provide professional staffing services and technology, finance and accounting, health and life sciences and government solutions. The Company is based in Tampa, Florida. LOS ANGELES RECORDING: Sued in Calif. for Defrauding Students ------------------------------------------------------------- Courthouse News Service reports that students claim in a class action in Los Angeles Superior Court that Los Angeles Recording School/The Los Angeles Film Schools defrauded them through numerous misrepresentations. MISTER SNACKS: Recalls 161 Cases of Sunbird Snacks Yogurt Raisins ----------------------------------------------------------------- Mister Snacks, Inc. of Amherst, New York, is recalling its 5 oz. packages of Sunbird Snacks Yogurt Raisins because they may contain undeclared peanuts. People who have allergies to peanuts run the risk of serious or life-threatening allergic reaction if they consume these products. This recall is limited to 161 cases containing twelve Sunbird Snacks 5 oz. Yogurt Raisin packages. The product comes in a 5 oz. clear bag marked with a Lot Number and Expiration Date of "EXP 0513 265" ink-stamped on the back of the package. The product was distributed nationwide in retail stores. No illnesses have been reported to date in connection with this problem. The recall was initiated after it was discovered that the peanut- containing product was distributed in packaging that did not reveal the presence of peanuts. Subsequent investigation indicates the problem was caused by a temporary breakdown in the Company's production and packaging processes. Consumers who have purchased 5 oz. packages of Sunbird Snacks Yogurt Raisins are urged to return them to the place of purchase for a full refund. Consumers with questions may contact the Company, Monday through Friday, 9:00 a.m. - 5:00 p.m. at 800-333- 6393. MORGAN STANLEY: Claims in "Abu Dhabi" Suit Remains Pending ---------------------------------------------------------- Negligent misrepresentation claims in the class action lawsuit commenced by Abu Dhabi Commercial Bank, et al., against Morgan Stanley remain pending, according to the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. On August 25, 2008, the Company and two ratings agencies were named as defendants in a purported class action related to securities issued by a structured investment vehicle called Cheyne Finance (the "Cheyne SIV"). The case is styled Abu Dhabi Commercial Bank, et al. v. Morgan Stanley & Co. Inc., et al. and is pending in the United States District Court for the Southern District of New York ("SDNY"). The complaint alleges, among other things, that the ratings assigned to the securities issued by the Cheyne SIV were false and misleading because the ratings did not accurately reflect the risks associated with the subprime residential mortgage backed securities held by the Cheyne SIV. On September 2, 2009, the court dismissed all of the claims against the Company except for plaintiffs' claims for common law fraud. On June 15, 2010, the court denied plaintiffs' motion for class certification. On July 20, 2010, the court granted plaintiffs leave to replead their aiding and abetting common law fraud claims against the Company, and those claims were added in an amended complaint filed on August 5, 2010. On December 27, 2011, the court permitted plaintiffs to reinstate their causes of action for negligent misrepresentation and breach of fiduciary duty against the Company. The Company moved to dismiss these claims on January 10, 2012. On January 5, 2012, the court permitted plaintiffs to amend their Complaint and assert a negligence claim against the Company. The amended complaint was filed on January 9, 2012, and the Company moved to dismiss the negligence claim on January 17, 2012. On January 23, 2012, the Company moved for summary judgment with respect to the fraud and aiding and abetting fraud claims. On May 4, 2012, the court granted the Company's motion to dismiss claims against the Company for breach of fiduciary duty and negligence and denied the Company's motion to dismiss claims against the Company for negligent misrepresentation. On August 17, 2012, the court granted the Company's motion for summary judgment with respect to the plaintiff's fraud claim. The court denied the Company's motion for summary judgment with respect to the plaintiffs' aiding and abetting fraud claim and ordered plaintiffs to show cause why the negligent misrepresentation claim should not be dismissed. The court dismissed all or part of the claims of three of the fifteen plaintiffs in the action based on lack of standing or reliance. Plaintiffs have moved to reconsider dismissal of the claims of these three plaintiffs. On October 5, 2012, the court ruled that plaintiffs sufficiently showed cause as to why the negligent misrepresentation claim against the Company should not be dismissed. The fifteen plaintiffs in the action assert claims related to approximately $983 million of securities issued by the Cheyne SIV. On September 17, 2012, plaintiffs filed expert reports with the court alleging that they are seeking $713 million in compensatory damages on behalf of all fifteen plaintiffs. Plaintiffs are also seeking punitive damages. Based on currently available information, the Company believes that the defendants could incur a loss up to approximately $713 million, plus pre- and post-judgment interest, fees and costs. MORTGAGE GUARANTY: Suit Settlement Payments May Reach $500,0000 --------------------------------------------------------------- Rich Lord, writing for Pittsburgh Post-Gazette, reports that U.S. Magistrate Judge Robert Mitchell approved a class-action settlement that will result in payments that could reach $500,000 to 20 women who encountered problems with Mortgage Guaranty during pregnancy or maternity leave. Pregnant for the third time, Carly Neals made plans in 2010 to immerse herself in motherhood for a few months. Part of her financial plan was to refinance the mortgage on her Pine home -- something that should have been painless for Ms. Neals, an attorney and wealth adviser whose employer provided paid maternity leave. Instead, she spent her leave dealing with paperwork demands and rejections from Mortgage Guaranty Insurance Corp., the Milwaukee- based firm picked by the lender to back the loan. "I spent the entire time trying to get this loan closed," Ms. Neals said. "They were insisting that I couldn't unless I physically went back to work." Ms. Neals is married but was the sole applicant for her mortgage. Her resulting two-year legal struggle ended on Dec. 6, when Judge Mitchell approved the class action settlement. That follows a May settlement of a related case brought by the Department of Justice, in which Mortgage Guaranty agreed to pay as much as $515,000 to 70 such women, including Ms. Neals. "It's extremely significant," said Shanna L. Smith, president and CEO of the National Fair Housing Alliance, which wasn't involved in Ms. Neals' case but has aided women in similar cases. "There are couples who are having children, and single female heads of housing who are having children, and they must be able to secure mortgage loans when they are on maternity leave." Mortgage Guaranty argued unsuccessfully in court pleadings that it had tried to finalize the loan, but Ms. Neals nixed it. Judge Mitchell in a 2011 opinion didn't buy that, finding that a push to close the loan on the final day of her maternity leave, which fell apart due to flawed paperwork, didn't invalidate her claims under the Fair Housing Act. Ms. Neals, 34, said she could have just closed the loan after returning to work, but sued because she was "driven by what they took away from me. "I felt like I had worked so hard to orchestrate a really good maternity leave where I could spend time with my baby and have peace of mind," she said. "There's just nothing like being at home with a newborn baby. And they just took that away from me." She complained to the Department of Housing and Urban Development. She hired civil rights attorney Adrian Roe, who teamed with Michael Simon in a complicated two-year court fight. The Justice Department and U.S. Attorney David Hickton's office filed a separate lawsuit based on the same allegations. "As part of the settlement, MGIC did not admit fault," Dan Stilwell, Mortgage Guaranty vice president and chief compliance officer, wrote Thursday in response to questions. "However, the Company did review and clarify its underwriting guidelines to help make sure that insurance applications are processed as we always intended." Still, Mortgage Guaranty is paying as much as $1 million to the women involved in the two settlements, plus $337,500 to Ms. Neals' attorneys and $38,750 to the federal government. The case has "raised awareness of these continued issues of discrimination still very present in our country," said Heather Arnet, CEO of the Women and Girls Foundation, based in Pittsburgh. "Without government-paid maternity leave, we continue to see women subjected to economic discrimination in this country." The women covered in the class-action lawsuit could get from $3,750 to $42,500, depending on an independent administrator's evaluation of the extent to which Mortgage Guaranty's policies affected their maternity leaves. Ms. Neals said she's cautiously optimistic that the company is no longer considering maternity status in its mortgage insurance decisions. Mr. Roe said that to him, the issue was simple: "Why would she need to be back at work in order to close the loan?" Companies have never tried to make a business case for withholding loans from pregnant women, said Ms. Smith. That's because there's no reason to believe that new parents are bad risks. "In this situation, is a single mom going to [sign a loan and then] say, well, I have no place for me and my child to live?" she asked. "Is a couple going to say, oh, we're going to live here for three months, and then we won't be able to make our mortgage payments?" Despite the lack of justification, the practice of factoring maternity leave into mortgage decisions has been hard to stamp out, said Ms. Smith. She said lawyers and advocates have been fighting mortgage firms on the issue since 1998, when a Toledo couple sued Countrywide Home Loans. That case took a decade to settle. PACIFIC BIOSCIENCES: Rigrodsky & Long Files Class Action -------------------------------------------------------- Rigrodsky & Long, P.A. has commenced a class action asserting violations of the Federal securities laws by Pacific Biosciences of California, Inc. on behalf of PACB shareholders. On April 6, 2012, the Court appointed Rigrodsky & Long, P.A. lead counsel in connection with the litigation. If you are a PACB shareholder who purchased your stock pursuant or traceable to the Company's Initial Public Offering on October 27, 2010 or from J.P. Morgan Securities LLC or from Deutsche Bank Securities, Inc., and would like to learn more about litigation, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Peter Allocco at Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, New York 11530 toll free at (888) 969-4242, by e-mail to info@rigrodskylong.com or at: http://www.rigrodskylong.com/news/pacific-biosciences-of- california-inc-pacb-ipo PACB (NASDAQ GS: PACB) is a development stage company that develops, manufactures, and markets an integrated platform for genetic analysis. The Company engages in commercializing a platform, single molecule, real-time technology (SMRT) for the detection of biological events. Among other things, the litigation alleges that the Company failed to disclose in connection with its IPO that, contrary to the PACB's claim that its RS DNA sequencing system had a 99.99% accuracy rate, the RS's raw-read accuracy rate was only 80%-84% such that would-be customers would have to sacrifice long read length to obtain increased raw-read accuracy, that countless insidious bugs in the RS system caused it to be highly unreliable and crash often, and that significant negative feedback had been received from limited production users of the system. On August 5, 2011, J.P. Morgan issued a report cutting PACB's rating from Overweight to Neutral, stating that due to a slower ramp-up in orders now being expected it was "lowering [its] 2012 projection from systems recognized from 170 to 90" and is now "not forecast[ing] operating profitability until after 2015." In reaction to this news, PACB stock plunged 34% to close at $6.50 per share on August 5, 2011. The very next month, on September 21, 2011, PACB was forced to disclose that its cash burn was threatening its operations so severely, that as a result it was laying off 130 employees and it would incur $5 million in separation expenses related to the lay off of these employees. In reaction to this news, PACB's again plummeted another 25% to close at $4.25 per share on September 21, 2011. Rigrodsky & Long, P.A., with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States. PFIZER: Faces Class Action Over Alleged Monopoly of Viagra Market ----------------------------------------------------------------- Darryl Greer at Courthouse News Service reports that Pfizer illegally gamed the Canadian patent system to monopolize the market for Viagra and overcharge customers, a class action claims in British Columbia Supreme Court. Lead plaintiff Britton Low claims that the Supreme Court of Canada invalidated Pfizer's patent on Viagra in November, citing shoddy Patent Act disclosures, after a legal dispute with generic drug maker Teva Pharmaceuticals. Teva wanted to bring a generic version of Viagra (sildenafil) to the Canadian market, but could not while the case wound its way through Federal Court and eventually up to the Canadian Supreme Court. Days after that ruling, Pfizer reduced the price of Viagra to the price for the generic version, Mr. Low claims. He claims that Pfizer tailored its original patent application to be ambiguous, though it knew that sildenafil was the effective ingredient. The application "failed to clearly set out what the invention was," according to the complaint. Mr. Low claims Pfizer improperly disclosed its invention of sildenafil to monopolize its production and prevent a generic version from entering the market during the class period between 2006 and 2012. "As a result of its unlawfully obtained monopoly over sildenafil, Pfizer was able to overcharge the plaintiff and the other class members for Viagra as compared to the price Pfizer could have charged for Viagra in the presence of generic competition," the complaint states. "The difference between the revenue Pfizer would have collected by charging the actual price for Viagra and the revenue which Pfizer would have collected at the price prevailing in the presence of generic competition (the 'Viagra overcharge') represents Pfizer's ill-gotten gains." Mr. Low is represented by Reider M. Mogerman, with Camp, Fiorante, Matthews, Mogerman in Vancouver. SIMPSON MANUFACTURING: "Nishimura" Suit Remains Pending in Hawaii ----------------------------------------------------------------- Nishimura v. Gentry Homes, Ltd; Simpson Manufacturing Co., Inc.; and Simpson Strong-Tie Company, Inc., Civil no. 11-1-1522-07, was filed in the Circuit Court of the First Circuit of Hawaii on July 20, 2011. The case alleges premature corrosion of Simpson Manufacturing Co., Inc.'s strap tie holdown products in a housing development at Ewa Beach in Honolulu, Hawaii. The case is a putative class action brought by owners of allegedly affected homes. The Complaint alleges that the Company's strap products and mudsill anchors are insufficiently corrosion resistant and/or fail to comply with Honolulu's building code. The Court has dismissed several of the claims the plaintiffs had asserted against the Company. The Company is currently investigating the claims asserted in the complaint, including, among other things: the existence and extent of the alleged corrosion, if any; the building code provisions alleged to be applicable and, if applicable, whether the products complied; the buildings affected; the responsibility of the general contractor, various subcontractors and other construction professionals for the alleged damages; the amount, if any, of damages suffered; and the costs of repair, if any are needed. At this time, the likelihood that the Company will be found liable for any damage allegedly suffered and the extent of such liability, if any, are unknown. The Company denies any liability of any kind and intends to defend itself vigorously in this case. No further updates were reported in the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. Simpson Manufacturing Co., Inc. -- http://www.simpsonmgf.com/-- through its subsidiaries, engages in the design, engineering, manufacture, and sale of building products. It offers wood-to- wood, wood-to-concrete, and wood-to-masonry connectors; screw fastening systems and collated screws; stainless steel fasteners; pre-fabricated shear walls and moment-frames; truss plates; and a range of adhesives, chemicals, mechanical anchors, carbide drill bits, and powder-actuated tools for concrete, masonry, and steel markets, as well as a range of concrete repair products and engineered materials for the repair, strengthening, and restoration of asphalt and masonry construction. The Company markets its products to the residential construction, light industrial and commercial construction, remodeling, and do-it- yourself markets primarily in the United States, Canada, Europe, Asia, and the South Pacific. Simpson Manufacturing Co., Inc. was founded in 1956 and is based in Pleasanton, California. SOUTHWEST AIRLINES: Accused of Violating Credit Transaction Act --------------------------------------------------------------- Robert Miller, on behalf of himself and all others similarly situated v. Southwest Airlines Co., a Texas Corporation; and Does 1 through 10, inclusive, Case No. RG12652437 (Calif. Super. Ct., Alameda Cty., October 17, 2012) is brought on behalf of those who used credit or debit cards to make airline ticket purchases from Southwest and any subsidiaries or affiliated companies nationwide. The Defendants have willfully violated the Fair and Accurate Credit Transaction Act and failed to protect the Plaintiff and the proposed class against identity theft and credit card and debit card fraud by printing the expiration date on receipts provided to debit card and credit card cardholders transacting business with the Defendants, Mr. Miller contends. He also seeks a permanent injunction enjoining the Defendants from continuing their unlawful practice of willfully violating FACTA's provisions intended to safeguard against identity theft and credit and debit card fraud. Mr. Miller is a resident of Los Angeles County, California. Southwest is a Texas corporation doing business throughout the state of California. The true names and capacities of the Doe Defendants are currently unknown to the Plaintiff. The Company removed the lawsuit on November 26, 2012, from the Superior Court of the state of California, County of Alameda, to the United States District Court for the Northern District of California. The Company argues that the removal is proper because the District Court has original subject matter jurisdiction over this action. The District Court Clerk assigned Case No. 4:12-cv- 05978 to the proceeding. The Plaintiff is represented by: Kenneth S. Gaines, Esq. Daniel F. Gaines, Esq. Alex P. Katofsky, Esq. Sepideh Hirmand, Esq. GAINES & GAINES, APLC 21550 Oxnard Street, Suite 980 Woodland Hills, CA 91367 Telephone: (818) 703-8985 Facsimile: (818) 703-8984 E-mail: Ken@gaineslawfirm.com Daniel@gaineslawfirm.com Alex@gaineslawfirm.com Sepideh@gaineslawfirm.com The Defendants are represented by: Colin H. Murray, Esq. BAKER & MCKENZIE LLP Two Embarcadero Center, 11th Floor San Francisco, CA 94111-3802 Telephone: (415) 576-3000 Facsimile: (415) 576-3099 E-mail: colin.murray@bakermckenzie.com ST. JUDE MEDICAL: Labaton Sucharow Files Class Action in Minn. -------------------------------------------------------------- Labaton Sucharow LLP filed a class action lawsuit on December 10, 2012 in the U.S. District Court for the District of Minnesota. The lawsuit was filed on behalf of persons or entities who purchased or otherwise acquired the publicly-traded common stock of St. Jude Medical, Inc. between October 19, 2011, and November 20, 2012, inclusive. The action charges St. Jude and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint alleges that, throughout the Class Period, the Company made false and misleading statements, and concealed material information relating to the safety, durability, and manufacturing processes of the Company's cardiac rhythm management lead wires marketed under the name "Durata." St. Jude, a global medical device company, manufactures and markets cardiac rhythm management systems, which rely on insulated leads, including Durata leads. The complaint alleges that, during the Class Period, St. Jude concealed from shareholders that: (1) Durata leads were subject to the same or similar design flaws found in the Company's earlier generation of leads; (2) the Company's design, manufacturing, testing, and quality control processes for leads, including Durata leads, were flawed by such significant deficiencies that the Company's leads presented a material risk to patients and would not be a commercial success; and (3) as a result of the foregoing, St. Jude lacked a reasonable basis to tout the testing and manufacturing processes underlying Durata leads and its proprietary insulation material called "Optim," to characterize the Durata leads as an improvement over its previous generation of leads, and to project that Durata leads would be a commercial success. The truth about St. Jude and its Durata leads was revealed through a series of disclosures. Prior to the markets' open on October 17, 2012, St. Jude hosted a conference call to discuss its financial results for the third quarter of 2012. During this call, the Company warned investors of possible advisory action by the U.S. Food and Drug Administration as a result of a then- ongoing inspection of the Company's Sylmar, California facility. In reaction to this news, St. Jude's stock dropped $2.09 per share, or 4.87 percent, to close at $40.85 per share following trading on October 17, 2012. On October 24, 2012, after the markets' close, St. Jude filed a Current Report on Form 8-K with the U.S. Securities and Exchange Commission about the FDA's inspection of the Sylmar facility that included a heavily redacted version of an FDA report on the facility. Describing the results of the inspection, the Company emphasized that "none of the observations identified a specific issue regarding the clinical or field performance of any particular device." On this news, St. Jude's stock price fell by $1.44 per share, or 3.63 percent, to close at $38.27 per share on elevated trading volume during the following trading session on October 25, 2012. Finally, after the markets' close on November 20, 2012, the FDA released its own version of the Sylmar inspection results, which -- unlike the version released by the Company -- did not redact the names of the product in question in each observation. The FDA's report made clear that the numerous concerns raised by the FDA's inspection almost universally pertained to the design, production, and quality control for the manufacturing process of Durata leads. In reaction to this news, St. Jude's stock price fell $4.34 per share, or 12.15 percent, to close at $31.37 per share on November 21, 2012, on extremely heavy trading volume. If you are a member of this Class you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm If you purchased St. Jude common stock during the Class Period, you may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the District of Minnesota no later than February 5, 2013. A lead plaintiff is a court-appointed representative for absent Class members. You do not need to seek appointment as lead plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, you may contact Rachel A. Avan, Esq. of Labaton Sucharow LLP, at (888) 753-2796 or (212) 907-0709, or via e-mail at ravan@labaton.com Labaton Sucharow LLP -- http://www.labaton.com-- is a law firm representing institutional investors in class action and complex securities litigation, as well as consumers and businesses in class actions seeking to recover damages for anticompetitive practices. The firm has offices in New York, New York and Wilmington, Delaware. STERLING FINANCIAL: Awaits Order on Securities Suit Dismissal Bid ----------------------------------------------------------------- Sterling Financial Corporation is awaiting a court decision on its motion to dismiss a securities class action lawsuit pending in Washington, according to the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. On December 11, 2009, a putative securities class action was filed in the United States District Court for the Eastern District of Washington against Sterling and certain of its current and former officers. The court appointed a lead plaintiff on March 9, 2010. On June 18, 2010, the lead plaintiff filed a consolidated complaint (the "Complaint"). The Complaint purports to be brought on behalf of a class of persons who purchased or otherwise acquired Sterling's stock during the period from July 23, 2008, to October 15, 2009. The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by failing to disclose the extent of Sterling's delinquent commercial real estate, construction and land development loans, properly record losses for impaired loans, and properly reserve for loan losses, thereby causing Sterling's stock price to be artificially inflated during the purported class period. Plaintiffs seek unspecified damages and attorneys' fees and costs. Sterling believes the lawsuit is without merit and intends to defend against it vigorously. On August 30, 2010, Sterling moved to dismiss the Complaint. On March 2, 2011, after complete briefing, the court held a hearing on the motion to dismiss. The court has not yet issued an order on the motion, but recently indicated that it intends to do so in the near future. Failure by Sterling to obtain a favorable resolution of the claims set forth in the complaint could have a material adverse effect on the Company's business, results of operations and financial condition. Currently, a loss resulting from these claims is not considered probable or reasonably estimable in amount. Spokane, Washington-based Sterling Financial Corporation -- http://www.sterlingfinancialcorporation-spokane.com/-- is a bank holding company, organized under the laws of Washington State in 1992. The principal subsidiaries of Sterling are Sterling Savings Bank and Golf Savings Bank. Subsequent to June 30, 2010, Golf Savings Bank was merged with and into Sterling Savings Bank, with the mortgage banking operations of Golf Savings Bank continuing to operate as a division of Sterling Savings Bank. STERLING FINANCIAL: Awaits Ruling on Bid to Dismiss ERISA Suit -------------------------------------------------------------- Sterling Financial Corporation is awaiting a court decision on its motion to dismiss a consolidated class action lawsuit, according to the Company's November 6, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2012. On January 20 and 22, 2010, two putative class action complaints were filed in the United States District Court for the Eastern District of Washington against Sterling Financial Corporation and Sterling Savings Bank (collectively, "Sterling"), as well as certain of Sterling's current and former officers and directors. The two complaints were merged in a Consolidated Amended Complaint (the "Complaint") filed on July 16, 2010, in the same court. The Complaint does not name all of the individuals named in the prior complaints, but it is expected that additional defendants will be added. The Complaint alleges that the defendants breached their fiduciary duties under Sections 404 and 405 of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), with respect to the Sterling Savings Bank Employee Savings and Investment Plan (the "401(k) Plan") and the FirstBank Northwest Employee Stock Ownership Plan ("ESOP") (collectively, the "Plans"). Specifically, the Complaint alleges that the defendants breached their duties by investing assets of the Plans in Sterling's securities when it was imprudent to do so, and by investing such assets in Sterling securities when defendants knew or should have known that the price of those securities was inflated due to misrepresentations and omissions about Sterling's business practices. The business practices at issue include alleged over-reliance on risky construction loans; alleged inadequate loan reserves; alleged spiking increases in nonperforming assets, nonperforming loans, classified assets, and 90+-day delinquent loans; alleged inadequate accounting for rising loan payment shortfalls; alleged unsafe and unsound banking practices; and a capital base that was allegedly inadequate to withstand the significant deterioration in the real estate markets. The putative class periods are October 22, 2007, to the present for the 401(k) Plan class, and October 22, 2007, to November 14, 2008, for the ESOP class. The Complaint seeks damages of an unspecified amount and attorneys' fees and costs. On September 26, 2012, Sterling received a letter from the U.S. Department of Labor (the "Department of Labor") containing similar allegations as those set forth in the Complaint, demanding that the violations alleged in the Department of Labor's letter be corrected and notifying Sterling that the Department of Labor may take legal action in connection with such allegations, including assessing a civil money penalty. Sterling believes the Complaint, and Department of Labor allegations, are without merit and intends to defend against them vigorously. A hearing on the motion to dismiss the Complaint occurred on March 22, 2011, with the court indicating that it would take the motion under submission. The court has not yet issued an order on the motion, but recently indicated that it intends to do so in the near future. Failure by Sterling to obtain a favorable resolution of the claims set forth in the Complaint or in the letter from the Department of Labor could have a material adverse effect on Sterling's business, results of operations, and financial condition. Currently, a loss resulting from these claims is not considered probable or reasonably estimable in amount. Spokane, Washington-based Sterling Financial Corporation -- http://www.sterlingfinancialcorporation-spokane.com/-- is a bank holding company, organized under the laws of Washington State in 1992. The principal subsidiaries of Sterling are Sterling Savings Bank and Golf Savings Bank. Subsequent to June 30, 2010, Golf Savings Bank was merged with and into Sterling Savings Bank, with the mortgage banking operations of Golf Savings Bank continuing to operate as a division of Sterling Savings Bank. TOYOTA MOTOR: Faces Class Action Over Excessive License Fees ------------------------------------------------------------ Courthouse News Service reports that Toyota Motor Credit Corp. overcharged customers for license and registration fees, a class action claims in Baltimore City Court. TPG CAPITAL: Faces $9-Mil. Overtime Class Action in California -------------------------------------------------------------- Nathan Hale, writing for Law360, reports that Investment firm TPG Capital LP neglected to pay its administrative assistants upward of $9 million in overtime, according to a class action removed to California federal court on Dec. 6. Lead plaintiff Erica Shankle, a TPG administrative assistant in California since October 2010, says the company skirted state laws by not paying overtime to its administrative assistants, who work at least five to 10 hours of overtime each week, according to the notice of removal. TPG employed 119 administrative assistants during the proposed class period of January 2008. US AIRWAYS: Pilots Lose Class Certification Bid in Pension Suit --------------------------------------------------------------- Dan McCue at Courthouse News Service reports that a federal judge refused to certify a class of 650 former U.S. Airways pilots who say that the airline delayed their lump-sum retirement benefits and owes them interest. The complaint, filed by lead plaintiffs James Stephens and Richard Mahoney, took aim at a U.S. Airways policy to delay lump-sum pension payments by 45 days. The retired pilots claimed the delay was unreasonable, and that the Employee Retirement Income Security Act requires lump-sum payments to be the actuarial equivalent of an annuity payment. Over the years, the lawsuit has wound from the Northern District of Ohio to the United States Court of Appeals for the Sixth Circuit, and then to the District Court in Washington, the D.C. Circuit and back. Though the D.C. Circuit ultimately denied the ERISA violation claim, it looked into whether the pilots deserve interest from the delay in their benefits payments. This finding would determine whether the delay itself was reasonable. Relying on precedent set by Internal Revenue Service regulation, the court held that the 45-day delay was not reasonable because it was "unrelated to the administrative calculation of plaintiffs' lump sum benefits" and did not "correspond to administrative necessity." With the District Court poised to calculate interest on remand, Messrs. Stephens and Mahoney pressed for class certification. They hoped to represent all participants and/or beneficiaries of the Retirement Income Plan for Pilots of U.S. Air Inc., who, from February 28, 1997, to March 31, 2003, elected to receive a lump- sum payment as a full or partial distribution of their retirement benefits, but did not receive them in the time prescribed by the plan. U.S. District Judge Rosemary Collyer sided with the airline on Dec. 7 after finding that, unlike the other pilots, Stephens has exhausted his administrative remedies under the plan. "No other pilot who received a lump sum before or after did so," she wrote. "Thus, Mr. Stephens's case is in a drastically different posture from the cases of other putative plaintiffs as to a potentially dispositive affirmative defense asserted by the PBGC," she added, abbreviating the name of the Pension Benefit Guaranty Corp., which took over U.S. Airways pension plan after the airline's 2003 bankruptcy. Messrs. Stephens and Mahoney claimed that there is precedent against requiring exhaustion in a case such as theirs, and that the court could even excuse the exhaustion requirement as futile. But this argument did not sway Judge Collyer. "The case law is clear that 'barring exceptional circumstances, parties aggrieved by decisions of pension plan administrators must exhaust the administrative remedies available to them under their pension plans before challenging those decisions in court,'" the decision states. This effectively makes Stephens a class of one, Judge Collyer found. "Plaintiffs challenging a pension plan administrator's decision are required to exhaust their administrative remedies before filing suit," Judge Collyer wrote. "Of the hundreds of members of the putative class, only Mr. Stephens did so. He is differently situated from the other pilots in a way that makes him not 'typical' as required by Rule 23(a)(3) as a prerequisite to class certification. Accordingly, plaintiffs' second motion for class certification will be denied." WELLPOINT INC: Wins Summary Judgment in Insurance Class Action -------------------------------------------------------------- Megan Stride, writing for Law360, reports that an Illinois federal judge on Dec. 10 handed WellPoint Inc. summary judgment on the last remaining claims in a putative class action alleging it bungled coverage for former Rightchoice Managed Care Inc. customers after it bought that company, rejecting the plaintiffs' liability arguments and ending the suit. U.S. District Judge J. Phil Gilbert ruled against plaintiffs Charlotte Phillips and Bob Myrick on their remaining claims against WellPoint, its Unicare subsidiaries and Rightchoice for breach of contract and unfair trade practices under the Illinois Consumer Fraud Act. WELLS FARGO: Faces Class Action Over Pick-a-Payment Portfolio ------------------------------------------------------------- Jonny Bonner at Courthouse News Service reports that Wells Fargo's "greed seems to have no bounds," claims a class action that says that the bank and others approved fewer than 3 percent of loan modifications after acquiring "troubled" mortgage loans effectively "for nothing." Jennifer Murphy and 30 other named plaintiffs sued Wells Fargo, Wachovia, World Savings Bank and Golden West Financial in a federal class action. The class claims the defendants failed to honor a settlement agreement in a class action filed against Wachovia in Northern California. Wells Fargo purchased Wachovia, and its "Pick-a-Payment" loan portfolio, for $15.1 billion, on the heels of IRS Notice 2008-83, issued Sept. 30, 2008, according to the complaint. "In a typical merger transaction, the acquiring company cannot use the acquired company's entire operating loss to offset its own profits, but instead, is limited to using $1 billion of those losses per year. The restriction exists to discourage companies from buying failing companies solely to avoid taxes and shelter their own profits," the complaint states. "IRS Notice 2008-83 removed that restriction for transactions involving financial institutions, thereby permitting an acquiring bank to take advantage of the acquired bank's losses in full at any time." Wells Fargo bought Wachovia on Oct. 3, 2008. "While Wachovia had substantial liabilities, and Wells Fargo knew that it would need to substantially write down Wachovia's Pick-a- Payment portfolio, the key to the deal for Wells Fargo was that it could use Wachovia's substantial losses to avoid paying taxes on its own profits, which could potentially save it $40 billion in taxes," the complaint states. During the merger, a class sued against Wachovia over the Pick-a- Payment portfolio, which left "hundreds of thousands of homeowners . . . suffering the effects of undisclosed negative amortization," according to the complaint. In response, in 2011 in San Jose, U.S. District Judge Jeremy Fogel approved a settlement and created a new loan modification program -- Mortgage Assistance Program (2MAP2R) -- based on objective, rather than subjective, criteria, the plaintiffs say. The program required Wells Fargo to provide principal forgiveness, "eliminating virtually all of the accrued negative amortization, by reducing a borrower's principal balance to the market value of the home in circumstances where the loan's principal balance exceeded the home's market value." But the plaintiffs say the bank and program ultimately did little to provide relief to "struggling" homeowners. "As with the prior loan modification programs, defendants have not followed through on their promises to provide substantial relief to homeowners," the 81-page complaint states. "The numbers are striking. According to Wells Fargo's records, for the period from April 1, 2011 to Sept. 30, 2012, there were 52,252 loan modification requests made by settlement class B members (borrowers who became in imminent threat of default after the parties agreed to the settlement). Of those requests, defendants have completed only 1,055 MAP2R modification (approximately 2 percent). In that same period, settlement class C members (borrowers who were in default at the time the parties agreed to the settlement) made 14,419 loan modification requests, but defendants completed on 691 MAP2R modifications (less than 5 percent)." Wells Fargo failed to properly hire and train employees to deal with the second mortgage program, the class claims. "Despite the extensive responsibilities that defendants agreed to take on as part of the settlement, Wells Fargo failed to hire a sufficient number of employees to effectively implement the MAP2R loan modification program. Further, it failed to properly train its employees to implement MAP2R, which has prevented settlement class members from obtaining the loan modification to which they are entitled as part of the settlement," the complaint states. The class claims Wells Fargo "effectively acquired Wachovia's assets for nothing," and the breach of settlement violates California's unfair competition law. "Defendant Wells Fargo's greed seems to have no bounds," the complaint states. "According to a 2011 report issued by Citizens for Tax Justice, Wells Fargo received $17.96 billion in tax breaks from 2008 through 2012, the most of any public company in that timeframe. The result of this transaction meant that while it earned more than $49 billion during that time period, the bank paid no taxes; instead, it received a $681 million tax credit. Thus, Wells Fargo saved more in taxes in three years than it paid to acquire Wachovia. In other words, Wells Fargo effectively acquired Wachovia's assets for nothing." The class seeks restitution and compensatory and consequential damages for unfair competition and breach of contract, and an order certifying a class, subclass and sub-subclass. They are represented by Jeffrey Berns -- jberns@bernsweiss.com -- with Berns Weiss, of Woodland Hills. WING ENTERPRISES: Recalls 20,000 Switch-it Stepladder/Stepstools ---------------------------------------------------------------- The U.S. Consumer Product Safety Commission, in cooperation with importer, Wing Enterprises Inc., of Springville, Utah, and manufacturer, Suzhou Zhongchuang Aluminum Products Co. Ltd., announced a voluntary recall of about 20,000 units of Stepladder and Stepstool Combination. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product. When extended, the inner side rails can separate from the outer side rails causing the user to fall. Wing Enterprises has received nine reports of the ladder becoming unstable causing the user to fall and sustain injuries ranging from scrapes and contusions to a fractured collar bone. The recalled products are Switch-it Type 1A Stepladder/Stepstools rated at 300 pounds. The Switch-it is an aluminum ladder that can be extended from a 2-foot stepstool to a 6-foot stepladder. It has flared C-channel outer rails that fit over inner rails. The outer rails have orange rocker-type locks on each side to hold the outer rails to the inner rails. The words "Switch-it by Little Giant" appear on the front of the top platform. Recalled Switch- it stepladder/stepstools have the following date stamps: 10622S, 10623S, 10624S, 10721S and 10722S. The date stamp is located immediately below the orange locks on the outer rails. Part Number "15124" is on the black and orange notice label attached to the back of the outer rails. Pictures of the recalled products are available at: http://www.cpsc.gov/cpscpub/prerel/prhtml13/13063.html The recalled products were manufactured in China and sold exclusively at The Home Depot and online at Homedepot.com from August 2012 to October 2012 for about $88. Customers should immediately stop using the recalled stepladder/stepstools and contact Wing Enterprises for a free replacement of the front outer section. Wing Enterprises Inc. may be reached toll-free at (855) 595-3378, from 8:00 a.m. to 5:00 p.m. Mountain Time Monday through Friday, or online at http://www.littlegiantladders.com/switch-it-recall/,for more information. WOLFGANG PUCK: Workers File Overtime Class Action ------------------------------------------------- Courthouse News Service reports that Wolfgang Puck and his restaurants, including Spago, stiff workers for overtime and violate other labor laws, a class action claims in Santa Monica Superior Court. Asbestos Litigation ASBESTOS UPDATE: R.I. Court Grants College's Summary Judgment Bid ----------------------------------------------------------------- Providence College filed a Motion for Summary Judgment against Marco Cera and Danielle Cera, Individually and as Natural Guardians of Gabriella and Nina Cera, contending that it is immune from civil suit under certain provisions of the Rhode Island Workers' Compensation Act. The Plaintiffs object to the motion, arguing that there exists a genuine issue of material fact as to whether the WCA applies in this case at all. In a decision dated Dec. 3, 2012, the Superior Court of Rhode Island, Providence, SC, found that the Plaintiffs failed to carry their burden of establishing a genuine issue of material fact that would preclude summary judgment in the instant matter. The Court noted that Marco Cera was the Defendant's "employee" during the 1993 and 1994 summers and does not fall within the "casual employee" exception as defined in Sections 28-29-2(4) of the WCA. As the Defendant's "employee," Cera is subject to the WCA's provisions, including the "waiver-of-rights" and "exclusivity" provisions. Interpreting these two provisions together, the Court finds that Cera is barred from maintaining any common-law tort claims against the Defendant because the Defendant has demonstrated that workers' compensation benefits are the appropriate and exclusive remedy for the Plaintiffs in the instant matter. The Court ruled, however, that it lacks subject-matter jurisdiction over the case pursuant to Sections 28-35-11 of the WCA and will transfer the matter to the Workers' Compensation Commission for proper adjudication in that forum. In so transferring this matter, the Court has not determined whether Cera has suffered a compensable "personal injury" actually entitling him to recover workers' compensation benefits within the meaning of Sections 28-33-1 of the WCA. Said issue is a question of fact within the exclusive jurisdiction of the Workers' Compensation Commission pursuant to Section 28-35-11. Thus, the Court found that there is no genuine issue of material fact that the WCA applies to the instant matter, and Defendant is entitled to judgment as a matter of law. The case is MARCO CERA and DANIELLE CERA, Individually and as Natural Guardians of GABRIELLA CERA and NINA CERA v. A.W. CHESTERTON COMPANY, et al., C.A. No. PC-12-0678 (R.I.). A copy of the Court's Decision is available at http://is.gd/7MECFHfrom Leagle.com. ASBESTOS UPDATE: Ohio Court Junks Inmate's Exposure Suit -------------------------------------------------------- In a Nov. 16, 2012 report and recommendation, Judge Norah McCann King of the United States District Court for the Southern District of Ohio, Eastern Division, recommended that the motions for summary judgment filed by the defendants in the cases captioned RONALD D. LEONARD, et al., Plaintiffs, v. ERNIE MOORE, et al., Defendants and RONALD D. LEONARD, Plaintiff, v. ERNIE MOORE, et al., Defendants, Case Nos. 2:10-CV-347, 2:10-CV-951 (S.D. Ohio), be granted. The complaints stem from alleged involuntary daily exposure to asbestos and mold while Mr. Leonard was incarcerated in the Chillicothe Correctional Institution between May 2009 and April 2010. In recommending for the approval of the summary judgment motions, Judge King ruled that because the Plaintiff has not established that he suffers from an actual serious injury or faces a substantial risk of serious harm to his future health, he cannot establish that the Defendants were aware of the injury or risk and disregard it. A copy of Judge King's Report and Recommendation is available at http://is.gd/fWPPzufrom Leagle.com. ASBESTOS UPDATE: TIG Insurance's Bid for Summary Judgment Granted ----------------------------------------------------------------- In an order dated Dec. 4, 2012, Judge Jay C. Zainey of the United States District Court for the Eastern District of Louisiana granted the motion for summary judgment filed by TIG Insurance Co., as successor by merger to International Insurance Co., as successor by merger to International Surplus Lines Insurance Co., after the Plaintiff, Buck Kreihs Co., Inc., advised he will not be filing an opposition to the motion. Judge Zainey held that coverage under the TIG policies is unambiguously excluded by the 36-month limitation. Based on the 36-month limitation, TIG does not owe coverage or a duty to defend Buck Kreihs for the asbestos claims and lawsuits asserted against Buck Kreihs from 1998 through 2012, and any future asbestos lawsuits that may be filed against Buck Kreihs, Judge Zainey concluded. The case is FIDELITY & CASUALTY CO. OF NEW YORK v. BUCK KREIHS CO., INC., ET AL. SECTION: "A" (2), Civil Action No. 06-2310, No. 06-2311., 06-2389, 09-4483 (E.D.La.). A copy of Judge Zainey's Order is available at http://is.gd/vzzdLifrom Leagle.com. ASBESTOS UPDATE: Suit v. Abex Corp., et al. Stays in Rhode Island ----------------------------------------------------------------- The Superior Court of Rhode Island, Providence SC, in an order dated Dec. 4, 2012, denied a motion filed by Jeffrey J. Melford and Tina S. Melford, arising out of their asbestos litigation filed against numerous defendants, including Abex Corporation. The Plaintiffs seek to stay the case in favor of recently-filed parallel proceedings in Louisiana on the ground of forum non conveniens. The Defendants oppose the Motion arguing that the litigation should continue in Rhode Island, the Plaintiffs' first choice of forum. In denying the Plaintiffs' motion, the Court ruled that the Plaintiffs have failed to demonstrate that a stay of proceedings in the Rhode Island matter is warranted under the doctrine of forum non conveniens. Moreover, the Court found that the "first- to-file" rule also weighs against staying the Rhode Island matter. Both the Plaintiffs and the Defendants have conducted significant discovery and trial preparation work in the instant case and should therefore litigate the dispute in Rhode Island, the Court held. The case is JEFFREY J. MELFORD and TINA S. MELFORD v. ABEX CORPORATION, et al., C.A. No. PC 11-1172 (R.I.). A copy of the Dec. 4 Order is available at http://is.gd/PKulUMfrom Leagle.com. ASBESTOS UPDATE: NY Ct. Junks Tishman's Bid to Dismiss Suit ----------------------------------------------------------- Judge Sherry Klein Heitler of the Supreme Court, New York County, denied defendant Tishman Liquidating Corporation, Inc.'s motion for summary judgment dismissing the complaint and all cross-claims asserted against it by Francis R. DeFilippis in an asbestos personal injury action. Judge Heitler ruled that the Plaintiff's testimony raises the issue of Tishman's authority to supervise and control the conditions which allegedly caused Mr. DeFilippis' injuries. Therefore, the Court ruled, with regard to whether Tishman is liable under Labor Law Section 200, the summary judgment motion is denied. The case is FRANCIS R. DEFILIPPIS and DOROTHY DEFILIPPIS, Plaintiffs, v. A.O. SMITH WATER PRODUCTS CO., et. al., Defendant(s), Docket No. 104644/2003, Motion Seq. No. 001 (N.Y.). A copy of Judge Heitler's Decision dated Dec. 3, 2012, is available at http://is.gd/OGyXhIfrom Leagle.com. ASBESTOS UPDATE: Boeing, et al., Get $20,000 in Attorneys' Fees --------------------------------------------------------------- Judge Callie V. S. Granade of the United States District Court for the Southern District of Alabama, Southern Division, entered an order dated Dec. 4, 2012, granting in part and denying in part motions of defendants The Boeing Company, Lockheed Martin Corporation, and United Technologies Corporation for attorneys' fees and costs, and denying in its entirety Honeywell International, Inc.'s similar motion. Specifically, the Court directed payment of $8,361 to Boeing, $5,800 to Lockheed Martin, and $6,000 to UTC, after reducing their original requested amounts. The Court denied Honeywell's request for payment of $3,580 because the motion was not timely filed and Honeywell has not demonstrated excusable neglect for its failure to either abide by the Court's order or seek permission to file out of time, its motion for attorneys' fees. The case is WALTER E. BROWN, Plaintiff, v. THE BOEING COMPANY, et al., Defendants, Civil Action No. 12-0414-CG-C (S.D.Ala.). A copy of Judge Granada's Decision is available at http://is.gd/z5ovUy from Leagle.com. ASBESTOS UPDATE: Crane Co.'s Bid to Dismiss Ex-Navy's Suit Junked ----------------------------------------------------------------- Judge Sherry Klein Heitler of the Supreme Court, New York County, denied Crane Co.'s motion for summary judgment seeking to dismiss an asbestos-related personal injury action after finding that the documentary evidence and the testimony of the Plaintiff raise material questions that should be determined by a jury. The documents, according to Judge Heitler, permit a reasonable inference that Crane valves had been installed on the relevant ships during the relevant time period. The case is MAXWELL DEER AND CAROLYN DEER, Plaintiffs, v. AIR & LIQUID SYSTEMS CORPORATION, et al., Defendants, Docket No. 190261/11, Motion Seq. No. 003 (N.Y.). A copy of Judge Heitler's Decision dated Dec. 5, 2012, is available at http://is.gd/jKvh7n from Leagle.com. ASBESTOS UPDATE: Foster Wheeler's Bid for Protective Order Denied ----------------------------------------------------------------- Dorothy and Bernard Letcher sued Foster Wheeler Energy Corporation and other defendants, alleging that the defendants unlawfully exposed them to asbestos. In a Nov. 16, 2012 memorandum opinion, Judge Stephanie Gallagher of the U.S. District Court for the District of Maryland denied Foster Wheeler's request for a protective order holding that Plaintiffs are seemingly seeking relevant information, thus there is no information before the Court tending to show that a protective order is necessary to avoid harm or injustice. The case is DOROTHY A. LETCHER et al., Plaintiffs, v. ALCATEL- LUCENT USA, INC., et al., Defendants, Civil Case No. MJG-12-3051 (D.Md.). A copy of Judge Gallagher's Decision dated Nov. 16, 2012, is available at http://is.gd/Wbc8Vmfrom Leagle.com. ASBESTOS UPDATE: Pa. Court Grants New Trial for John Crane Inc. --------------------------------------------------------------- John Crane, Inc., challenges an order of the Court of Common Pleas of Philadelphia County, granting a new trial pursuant to a post- trial motion filed by Margaret Shelhamer, executrix of the estate of Thomas Shelhamer. In an opinion dated Nov. 20, 2012, the Superior Court of Pennsylvania reversed the lower court's decision pointing out that the verdict sheet used in the case at hand showed that the jury found that the decedent had not been exposed to Crane's product, which was not defective, and yet, in obvious conflict with those findings, also concluded that "the defective product" of Crane was a factual cause of the decedent's injury. The case is MARGARET SHELHAMER, AS EXECUTRIX OF THE ESTATE OF THOMAS SHELHAMER, DECEASED, AND IN HER OWN RIGHT, Appellee, v. JOHN CRANE, INC., F/K/A CRANE PACKING, Appellant, No. 856 EDA 2011 (Pa.). A copy of the Superior Court's Decision is available at http://is.gd/qVOuIRfrom Leagle.com. ASBESTOS UPDATE: Packard Plant Abatement May Take 1 Year and $10MM ------------------------------------------------------------------ Built of reinforced concrete and covering more than 3 million square feet, the Packard Plant has become a dumping ground for household waste, cars, boats, mattresses, spray-paint cans and other debris. And it is contaminated with asbestos and other hazardous materials, Jennifer Dixon of The Detroit Free Press reports. All that makes demolition a complicated, expensive and time- consuming project, said John Adamo Jr., an engineer and CEO of Adamo Group, a demolition, construction and environmental contractor in Detroit. Adamo estimates bringing down the structure could cost $10 million, and removing environmental contaminants might add anywhere from $1 million to $10 million to the price tag. The city estimates total costs at $20 million. Assessing the environmental contaminants is among the first steps in bringing down the plant, which dates to the early 1900s. Adamo said that could take up to three months, with removal of hazardous materials requiring up to a year. It all depends on what's found on the site, which is a collection of dozens of buildings connected by cargo-door entrances, enclosed bridges and underground tunnels. The Michigan Department of Environmental Quality, which tried in the late 1990s to demolish the plant for the city but was stopped by a court battle, had a consultant survey the property for asbestos-containing materials. At the time, the consultant found significant quantities of asbestos scattered next to insulating piping systems in bathrooms, storage rooms, bays, basements and tunnels. Inspections also revealed that rubbish and trash in the plant were cross- contaminated with asbestos. The Free Press obtained the report from the DEQ under the Freedom of Information Act. The asbestos in the tunnels was found in piles 6-18 inches deep and is highly friable -- meaning it crumbles to the touch, releasing fibers into the air. Asbestos, a carcinogen, is hazardous when friable. The consultant also found large quantities of asbestos debris in the basements of most buildings. Urban explorers who visit the plant tend to stay out of the basements and tunnels, however. Since the consultant's report was written, the plant has deteriorated significantly. And it is much more open to the elements. Strict rules govern asbestos removal. First, the property owner must have a state-certified inspector conduct an assessment to determine the amount, location and condition of the asbestos. Then, the property owner must give the DEQ and the Michigan Occupational Safety and Health Administration 10 days' notice before starting abatement. Asbestos is typically wetted, placed in bags or barrels, and then transported in a lined container to a landfill that accepts asbestos. All bags with asbestos waste must be marked and tracked. Workers must wear gloves, protective clothing and respirators. The DEQ and MIOSHA make unannounced inspections at abatement sites to ensure workers and the environment are protected, said Karen Kajiya-Mills, a manager with the DEQ's air quality division. Once the asbestos and other hazards are removed from the Packard Plant, demolition could take a year, Adamo said. "In terms of the level of effort it takes to take down a concrete building, it's challenging, so you need a lot of equipment, you need a lot of big equipment, because this is big, heavy, industrial use," Adamo said. Also, Adamo said, factories built in the early 1900s were overbuilt -- using more concrete and steel than was necessary, but intended to accommodate expansion as the auto industry grew. "So the level of effort to take down a building in this era versus a similar building that would have been built 50 years later is night and day," Adamo said. The building doesn't have much steel left to salvage as an offset to demolition costs. "I would guess that maybe 10% of what would come out of here would be steel and 90% would be concrete and most of the value of that steel would be of the lower quality because it would be rebar," Adamo said, "and it generally has less value than a structural steel beam." ASBESTOS UPDATE: NY Tenants Spent $20MM on False Fibro Alarm ------------------------------------------------------------ Candice M. Giove of The New York Post reports that in 2005, a city Department of Environmental Protection inspector took a tile from a vacant Co-op City apartment to a lab for testing. A trace of asbestos was discovered in the 40-year-old adhesive. The city ordered a massive asbestos abatement and reflooring of the complex's 15,372 apartments at a cost of $20 million to tenants. But the remediation has been a waste of money, according to a lawsuit being filed tomorrow in Bronx state Supreme Court on behalf of the 55,000 co-op owners. They claim 86,000 air tests conducted so far show no airborne asbestos before, during or after flooring work. They blame the phony scare on overzealous city inspectors and want their money back. "All of the facilities in New York City have this glue. All of the Mitchell-Lama developments have this kind of glue, and nothing is [airborne] and no one else is being forced to pay," said former Assemblyman Stephen Kaufman, the attorney representing the tenants' RiverBay Corp. in the suit against the city and the DEP. "It is absolutely Alice and Wonderland-ish." The asbestos precautions and testing cost $4 million annually, which translates into a 4 percent maintenance increase for each owner, the plaintiffs claim. The suit demands that Co-op City's apartments no longer be subject to asbestos-abatement mandates and seeks unspecified damages. Since the remediation order, the one-man job of replacing tiles in an apartment became a production requiring a half-dozen specialists dressed head-to-toe in blue hazmat suits, with decontamination tents set up in the basements of the 35-building complex. During a tour of a flooring and asbestos-abatement job on the 21st floor of a Baychester Avenue building last week, abatement specialists lined an entire hallway with equipment and a separate environmental specialist managed the site. The workers prepped by duct-taping double layers of plastic sheeting along a hallway's wall. The setup alone took an hour. What would have been small, $300 tiling jobs have become $4,000 hours-long affairs, according to RiverBay's Kevin Keenan, who oversees all of the abatement projects. Asbestos expert John Lange and former city DEP Commissioner Joel Miele, commissioned by RiverBay as consultants, agreed that the asbestos-abatement measures were unnecessary. And Keenan said no maintenance worker in the history of Co-op City has ever been sick from tile exposure. "In the 40 years we've been working here, we've had no issues of anyone being hospitalized or sick from asbestosis or mesothelioma," he said. "It's not a health issue, but the city still puts these regulations on us." ASBESTOS UPDATE: Fighting in Southern Israel Releases Carcinogens ----------------------------------------------------------------- Alphi Shauli of YnetNews (Israel) reports that damage assessment in Israel's southern communities following Operation Pillar of Defense is ongoing, and the fighting's environmental impact is slowly becoming clear. The Tax Authority has so far received 1,240 claims over property damage to residential buildings, businesses and cars and the Treasury said the eight-day military campaign cost the Israeli market some NIS 3 billion (about $790 million). Environmental impact reports are still pending, but so far assessors have found at least four asbestos structures that suffered direct hits by Gaza fire. Asbestos is considered a hazardous material and is a known carcinogen. The Environmental Protection Ministry has been working to safely remove it from buildings nationwide. One of the main problems with asbestos is that it is highly susceptible to impact and even the slightest damage to it can release millions of microscopic, toxic fibers into the air. According to ministry inspectors, the areas adjacent to the damaged buildings already recorded high levels of asbestos pollution -- far higher than the acceptable levels. Removing asbestos is a delicate and costly procedure, which is why the government is overseeing all such projects. "There are about 100 million square meters of asbestos across Israel, in private homes, schools and agricultural structures," Tamar Bar-On, the director of the Hazardous Waste Division in the Environmental Protection Ministry, told Ynet. Ministry protocols as to dealing with rocket-damage to such structures were put in place during the Second Lebanon War, she added. "In case of a direct missile hit, we face the risk of widespread fibers. Those dealing with the environmental hazard must wear protective gear, the area must be cordoned off and various steps must be taken to minimize the fibers' dispersion," she explained. ASBESTOS UPDATE: Hills, Hornsby Councils Support New Fibro Policy ----------------------------------------------------------------- Isabell Petrinic of Hills News (Aus) reports that the Hills and Hornsby Councils have thrown its in-principle support behind a new model asbestos policy. "The model code is presently being assessed prior to a report being prepared," a Hills Council spokeswoman said. Hornsby Council also supports the idea of national coordination on asbestos removal. "Consistent with the Model Asbestos policy, it is council's practice that all development consents involving demolition requires the applicant to comply with the Australian Standard for the demolition of structures, engage a contractor licensed by WorkCover NSW to undertake the work, provide receipts confirming that the materials have been disposed of properly and to erect signage alerting the neighbours that the asbestos is about to be removed," a spokeswoman said. Developed by the Local Government and Shires Association in partnership with the state government, the model was released last week, during Asbestos Awareness Week. But only as a guideline. "Unfortunately it is up to each individual council to adopt the model policy," Holroyd councillor Greg Cummings said. His father died from asbestosis on Nov. 22, 2002. Hills Council's spokeswoman said the council's general manager, Dave Walker, had been awaiting this model policy for some time. "Council has always recognized the significance of the implications of asbestos and applied the highest standards both in planning and operational terms, even before the model code," she said. Holroyd Council is the only council from 152 singled out for praise by the NSW Ombudsman Bruce Barbour in his 2010 report Responding to the asbestos problem: The need for significant reform. He said Holroyd had made a number of initiatives including: -- Introducing comprehensive asbestos policies; -- Implementing public awareness information sessions and lobbying for improvements in the way asbestos was dealt with; and -- Providing input to the Asbestos Co-regulators Working Group. Mr. Barbour said many of the other councils provided little, outdated and even no information about asbestos to the community. On the Hills Council's website, government information about fibro and asbestos can be found by clicking on the Planning and Development tab at thehills.nsw.gov.au. Holroyd's site includes details of the council's ongoing campaign around asbestos and the outcomes of its lobbying efforts. The council is campaigning for demolition control to be returned to councils, for the removal of state-controlled tipping fees, best practice removal/disposal and the creation of a single independent authority to deal with all asbestos matters. "Council would also support free, or cheaper rates, for the disposing of asbestos in tips as this would go a long way to reducing illegal dumping," the spokeswoman for Hornsby Council said. Inhaling asbestos fibers can cause serious lung disease and affect other organs years after exposure. Historically, the workers most at risk from exposure to asbestos were workers involved in asbestos mining operations, manufacturing processes and installers of asbestos materials. In 2011, the most common non-occupational exposure was through home renovation-related activities, followed by car maintenance. The Facts -- Asbestos was used in more than 3000 products before finally being banned in 1991; -- James Hardie was the largest manufacturer of asbestos building products; -- The company relocated off-shore to The Netherlands, and later Ireland, in 2001, leaving the Medical Research and Compensation Foundation; -- It was later found to be short about $1.3 billion; and -- The late Bernie Banton, who died of asbestos diseases in November 2007, campaigned to have James Hardie made responsible for victims' compensation. Tips: What You Should Know -- Asbestos can release fibers into the air when disturbed; -- Most people cannot tell if building materials contain asbestos just by looking at them, it is not always possible to detect asbestos just by looking at it -- have a licensed asbestos removalist inspect it; -- Never cut, drill, scrape, water blast, disassemble or dump building materials that may be asbestos without taking the required safety precautions; -- Never clad over asbestos material unless it can be done without damage to the asbestos; and -- When removing asbestos, wear disposable overalls, wet material to minimise dust, consult the Work Cover safety guide: http://www.workcover.nsw.gov.au ASBESTOS UPDATE: Geely Voluntarily Recalls MK Units in Australia ---------------------------------------------------------------- Mike Stevensof The Motor Report (AUS) says that a voluntary recall has been announced for Geely's MK light car in Australia, following confirmation of the discovery of asbestos in engine gaskets. The announcement comes just months after asbestos was found in nearly 25,000 models from Chinese compatriots Great Wall Motors and Chery. Unlike the Great Wall utes and SUVs, and the Chery passenger cars, the Geely MK is sold only in Western Australia, due to the absence of Electronic Stability Control in the light car. The Geely recall will see owners contacted by mail, inviting them to have the affected parts replaced in a process it says will take around 90 minutes. Affected Great Wall and Chery models however will keep the components, with the ACCC approving the application of a warning sticker and the assurance of replacement if necessary. The ACCC has approved the same steps for the Geely MK. For the Geely MK, an assessment carried out by GCG Healthy Safety & Hygiene describes the risk of asbestos exposure to occupants as "negligible." "During normal operation of these vehicles, the gaskets will not release measurable quantities of respirable asbestos fiber. Gaskets identified as containing asbestos are separate from cabin ventilation systems," the report reads. ASBESTOS UPDATE: GARDS Members, Supporters Meet at The Rose Garden ------------------------------------------------------------------ The Latrobe Valley Express reports that sufferers of asbestos related diseases (ARD), their loved ones and other community members gathered to remember those who have died, and vowed to continue the fight for awareness and justice on Friday, Nov. 30. Gippsland Asbestos Related Disease Support (GARDS) members and supporters gathered at the Morwell Centenary Rose Garden where five guest speakers talked on a range of asbestos-related issues. Celebrant Beryl Stevens officiated an ecumenical service. GARDS chair Vicki Hamilton called for attendees to voice their concerns about a Federal Government-released householders guide, which downplays the risk of asbestos to renovators, and encouraged them to write and call the Department of Health and Ageing for its removal. Speaker Ann Bishop, whose father Daniel Bryce died this year of mesothelioma, told the crowd how GARDS helped her and her father toward the end of his life. Following the speakers a ceremony was held in which families could lay flowers and pay tribute to their loved ones. The Coal Valley Male Chorus and Newborough Primary School choir performed, while a poem was also read by Ms. Hamilton, who lost her father to an asbestos related disease. ASBESTOS UPDATE: Fibro Pushes Medway Project Completion to March ---------------------------------------------------------------- Jessica Trufant of The Melford Daily News reports that Selectmen in August voted to begin the process of knocking down the dilapidated home at 5 West St. in Medway with the intention of having it leveled by Nov. 30 -- but the discovery of asbestos in the home may push the demolition back to March. Building Commissioner John Emidy told the Board of Selectmen Monday night (Dec. 3) that demolition bids came back last week, with the lowest bid at $12,000 -- $3,000 less than Emidy estimated -- but the town may not meet the 30-day limit for entering a contract due to asbestos found in a rusted oil tank. The town must have contamination and asbestos testing done in the home, despite its dangerous condition. "It's so unsafe you can't really get in there. It's so unsafe, the bathtub is in the cellar," Emidy said. "It's really, really unsafe in the building." Bids for testing came back at $1,655, Emidy said, but the town will then have to go out to bid for the removal of the asbestos, which he estimated would cost no more than $5,000. "The timing is critical for the abatement to meet the 30-day price proposal," said Town Administrator Suzanne Kennedy, who estimated that the demolition might not happen until March. ASBESTOS UPDATE: Old Delphi Plants Abatement Eyed in Mid January ---------------------------------------------------------------- Thomas Gnau of The Dayton Daily News reports that The remaking of an historic section of West Dayton is ready to move forward. Dayton City Commission's passage last week of an agreement between the city of Dayton and Home Avenue Redevelopment LLC is a key step on the way to redeveloping former Delphi factories in West Dayton, and transferring the nearby original Wright Brothers airplane factory buildings to the Dayton Aviation Heritage National Historical Park. The agreement makes Home Avenue Redevelopment responsible for the acquisition, demolition, clean-up and improvement of former Delphi plants east and west of Abbey Avenue. A $3 million grant awarded last summer by the Ohio Department of Development's Clean Ohio Revitalization Funds program made funding possible. Brad White, principal with Home Avenue Redevelopment as well as Mason-based Hull & Associates Inc., expects to get title on the property from DPH Holdings -- which owns the properties Delphi discarded in its bankruptcy stint -- early this month. What comes next is asbestos abatement, materials salvaging and recycling and demolition work, he said. Home Avenue Redevelopment has control of the former Delphi and Wright Airplane factory buildings south of Third Street, north of U.S. 35 and bounded to the west by South Upland Avenue, with another parcel east of Abbey. All former Wright properties are east of Abbey. As far as White is concerned, time is of the essence. "In a construction project, you make or break your project on getting things done quickly," White said. Timothy Downs, Dayton deputy economic development director, said approval of the agreement was the "last major hurdle" for physical construction work to begin. The goal is to demolish most if not all of the former Delphi buildings while transferring Wright buildings one to five to the National Aviation Heritage Alliance, and then the national park. But Downs said it's possible the alliance will oversee the Wright buildings permanently. White said his firm is looking at demolition contractors for the site, with asbestos abatement being the next "big step," happening perhaps in mid-January. As soon as asbestos is cleared, metal will begin to be recycled, he said. A formal "groundbreaking" could happen in January. No companies other than local alternative materials manufacturer Liteflex have expressed interest in the site, at least to White. But that doesn't concern him, he said. "People don't really start seeing the vision for the end-point until you start making progress with the project," he said. "Right now it's a big brownfield." ASBESTOS UPDATE: Norfolk Island Hopes to Ship Out 60 Tons of Fibro ------------------------------------------------------------------ The ABC News (Aus) reports that it is hoped crates of asbestos building up at Norfolk Island's tip could soon be shipped to the mainland for disposal. About 60 tons of the hazardous material has been removed from homes and buildings and stored at the waste centre since 2004. The island's Community Services Minister Timothy Sheridan says it needs to go through quarantine before it can be brought into Australia. He says a new shipping route is being introduced that will transport the asbestos from Norfolk Island. "With it departing from Brisbane, that's a full quarantine port so they have facilities there to treat any goods that come into Australia that need treatment. "We see this as a positive because besides the asbestos we also have something like 5,000 car batteries that we've been trying to get rid of." Mr. Sheridan says it will help them to better deal with the buildup of rubbish on the island. "It's taking up a lot of room at our waste management centre," he said. "So if we can get rid of the 5,000 car batteries and the 60 tons of asbestos it's going to clear the way for a lot of other goods to be stockpiled there. "Hopefully in the next 12 months we'll be able to work out a regime with AQUIS in Australia and get a smooth flow of our recyclables off Norfolk Island." ASBESTOS UPDATE: Shelby School Head Stresses Montevallo Is Safe --------------------------------------------------------------- Martin J. Reed for Alabama Live (al.com) reports that Shelby County School District Superintendent Randy Fuller on Dec. 3 emphasized Montevallo Elementary's safety amid ongoing concerns about mold and asbestos contamination that earlier prompted parents to keep their kids from attending class. "We are going to do a complete cleaning of this building: every classroom, every wing of this building," Fuller said. "We are in the process of doing that cleaning now. We want everyone to know that Montevallo Elementary is a safe environment." His statements came during a meeting attended by media, school district representatives and leaders and the consulting firm that conducted the mold testing in the building. A private meeting with faculty was set to follow. Although members of the school's parent-teacher organization were invited, none attended. The meetings happened after a couple dozen parents that morning decided to keep their children away from the school due to health fears. Fuller's message to those concerned about mold in the building: "We would never do anything to put any of our students in harm's way." After sending out a letter to parents last Friday, Nov. 30, about testing and correction involving the mold problems, Fuller said he plans to issue another message to reassure them that results show a safe environment for students and workers. "We're going to do everything we can to get that information out," he said. Bill Young, president of ERG Environmental based in Pelham, said testing his company conducted since September concerning the presence of mold in the building shows isolated issues. Tests compared levels of mold spores from inside and outside the building. With the latest test on Nov. 26, Young said, "Everything in this school is normal." His company performed initial air quality tests for mold spores on Sept. 21-22. "We took a number of samples outside and inside. The entire school compared favorably with the outside . . . except one classroom," he said. A second round of air sampling on Nov. 14 showed the interior comparing favorably compared to the outside results, he said, noting that he recommended one classroom undergo "additional cleaning" that happened on Nov. 20. "Comparatively, your school is in great shape compared to the outside air," Young said. When asked about the school's condition recondition regarding mold, Young replied, "Absolutely safe. My child is exposed to more mold in my house because we have three dogs." He told the group of about 30 people gathered in the school's library that mold is everywhere. "It's on our clothes right now. We need mold to break down organic matter to replenish nutrients in our soils," he said. "We are always going to have a little mold in our buildings. Our counts should always be at or below what our outside counts are." Concerning the asbestos worries that people may have, Young said his company has been the asbestos consultant for the Shelby County school system since the early '90s. "They're more up to date on their records and training than many of the school systems in the state," he said. An audit by the U.S. Environmental Protection Agency in 2007 showed "only a couple of minor deficiencies," Young said. "There's asbestos . . . but Shelby County Board of Education is doing everything they need to maintain safe conditions in their school throughout the county, not just here." He said a representative of the U.S. Environmental Protection Agency will visit the area "for another audit of the school system paperwork" concerning asbestos records. Fuller said he expects work to correct the mold issues to finish in about four to six weeks. Another round of testing will happen soon to gauge mold presence throughout the building and to determine if it's safe to return about 100 fifth-graders from temporary classrooms. "We want to be very transparent in what we're doing here," Fuller said. "We would not put any of our students in harm's way or put them in an unsafe environment." ASBESTOS UPDATE: India OKs Asbestos Onboard Aircraft ---------------------------------------------------- Manu Pubby of The Indian Express (New Delhi) reports that more than two months after the Admiral Gorshkov aircraft carrier suffered an embarrassing setback after its boilers malfunctioned during high speed trials in the Barents Sea, India has given a go ahead to the shipyard in charge of the project to use asbestos based insulation as part of the extensive repair package. The aircraft carrier, which was to be handed over to India this month after a series of delays, suffered yet another roadblock after the insulation on its boilers broke down while the warship was carrying out sea trials, causing damage to critical equipment. An analysis revealed that the fire-brick insulation that was used on the refurbished warship proved inadequate to handle the high temperatures and broke off. This lead to several media reports in Russia that blamed the Indian Navy for insisting on not using asbestos for insulation. Some reports even claimed that Chinese fire brick insulation was used, leading to a swift denial by Beijing. However, Navy Chief Admiral D K Joshi clarified on Monday, Dec. 3, that India was never against the use of asbestos-based insulation for the warship's boilers in the first place but that the decision was taken by the contractors who are refitting the old warship. "The insulation inside the boilers had become misplaced. Initially it (the insulation) had been kept asbestos free, which was a contractual stipulation. We had nothing to do with that decision. It was an internal decision of the supplier," Admiral Joshi said, adding that the Navy became aware of the asbestos issue only after the snag developed during the trials. The Navy has now decided to give the shipyard a go ahead after it proposed that the asbestos lining would be better. "We have concurred to their proposal that they want to go for asbestos based lining. This being a sealed unit, the environmental degradation factor externally is negligible. So we have concurred," the Navy Chief said. Speaking on the other major project of the Indian Navy, the Admiral said that "good news" is expected soon on the Arihant indigenous nuclear missile submarine that is currently undergoing harbour trials in Visakhapatnam, hinting that the nuclear reactor of the boat would soon go critical. ASBESTOS UPDATE: Ohio Senate Panel Passes Anti-Double-Dipping Bill ------------------------------------------------------------------ Julie Carr Smyth, Statehouse Correspondent for The Associated Press, reports that an Ohio Senate committee advanced a bill Tuesday, Dec. 4, aimed at curbing duplicate lawsuits over on-the- job asbestos exposure in a state with one of the largest backlogs of such cases in the nation. The bill cleared the committee along mostly party lines, and the full Senate was to vote on the measure Wednesday, Dec. 5. The House in January approved the bill, which preserves victims' rights to sue when harmed by the powdery white carcinogen and doesn't cap the damage awards they can receive. The legislation would require workers to divulge all asbestos claims filed by them or on their behalf or face perjury charges. Proponents say it would prevent double-dipping by victims, who have two separate ways of pursuing damages: trusts set up by sometimes bankrupted companies to compensate victims or lawsuits against active businesses. But opponents say the bill impedes legitimate claims. They say its passage would make Ohio the first state in the country to impose such claims restrictions. Similar legislation has been introduced in Oklahoma, Louisiana, Texas and West Virginia and in the U.S. House and Senate. Asbestos claims are accelerating nationwide, and more than 8,500 U.S. companies in sectors representing 85 percent of the U.S. economy are defending asbestos-related claims, according to legislative analysts. The U.S. Supreme Court has labeled it a crisis. "The problem with the two tracks is that there is a lack of full transparency between them," says a fact sheet by proponents led by the business-backed Ohio Alliance for Civil Justice. "In a lawsuit, claimants may tell the court about claims already made on trusts. However, they are not obligated to tell the court if they plan future claims to trusts. As a result, the system is rampant with inconsistent claims, fraud and 'double-dipping' from the trust accounts, and from lawsuit awards." Cuyahoga County, home to Cleveland, had more than 5,700 pending cases on its special asbestos docket at the end of September, according to information from the Ohio Supreme Court. That places the county among America's busiest asbestos dockets. Cases are also pending in more than 70 of Ohio's 88 counties. A coalition representing asbestos cancer victims says the bill protects corporations at the expense of victims. The group points out that Ohio has the eighth highest rate of death in the U.S. from the asbestos-related disease mesothelioma -- at least 1,356 people since 1999, and potentially many times that number of actual victims. "This bill is designed to give a handout to the asbestos industry while robbing dying cancer victims of their constitutional rights," said Anthony Gallucci, president of the Asbestos Victims Coalition. "The asbestos industry should be held accountable for the thousands of deaths and injuries." Bob Groff of Avon and his granddaughter Sarah Groff Edelman both were diagnosed with mesothelioma after years of performing brake work in Groff's garage. Groff said his granddaughter, diagnosed at 21, survived through numerous painful surgeries. "We need Gov. (John) Kasich and Ohio's senators to stand up to the corporations that have killed thousands of our neighbors and brought pain and misery to their families," Groff said in a coalition statement. "Too many Ohio workers have died. Our elected officials should not limit justice." The bill stems from model legislation developed by the conservative American Legislative Exchange Council, which has drawn attention for the entree it has recently gained at statehouses through efforts including opulent, corporate-backed conferences not always subject to normal disclosure rules. ASBESTOS UPDATE: Failed Kensington Project Inspector Pleads Guilty ------------------------------------------------------------------ Phil Fairbanks of The Buffalo News reports that the botched demolition of one of Buffalo's oldest public housing complexes took a new turn on Tuesday, Dec. 4 -- an admission that workers on the project tried to cover up the illegal removal and disposal of asbestos. Henry Hawkins, a compliance monitor on the failed project at Kensington Heights, admitted falsifying inspection reports in order to protect Johnson Contracting, the Buffalo company hired to remove asbestos from the complex's six towers. Hawkins' admissions -- he is the first defendant to be convicted - - are part of a deal that allows him to plead guilty to a misdemeanor charge in return for his promise to cooperate with federal prosecutors. "There is a cooperation clause in the plea agreement," said Patrick J. Brown, Hawkins' defense lawyer. "It's a very serious charge and this seemed like an appropriate way to resolve it." Hawkins was one of 11 defendants -- nine individuals and two companies -- charged in a 23-count indictment related to the asbestos-removal project at Kensington Heights on Fillmore Avenue. The defendants include three inspectors -- one from the state and two from the city. As part of his plea deal, Hawkins said he and Rai Johnson, a supervisor at Johnson Contracting, worked together to cover up the fact that asbestos remained in four buildings they had certified as clean. "Rai Johnson wrote in his log book that all the asbestos had been removed," Assistant U.S. Attorney Aaron J, Mango said in court. "At the time he wrote that, all the asbestos had not been removed. And the defendant knew all the asbestos had not been removed." Kensington Heights, which is located behind the Erie County Medical Center, has been a symbol of decay and abandonment for three decades. Visible from the Kensington Expressway, the 17-acre complex is owned by the Buffalo Municipal Housing Authority and was targeted for demolition three years ago as part of a larger plan to redevelop the site into a $105 million retirement community. The charges outlined in the indictment center around the work of two companies -- Johnson Contracting and JMD Environmental Inc. of Grand island -- and the allegations that they violated the federal Clean Air Act by improperly removing and disposing of asbestos. The federal indictment alleges that from June 2009 to January 2010, Johnson Contracting and two of its managers -- Rai Johnson and President Ernest Johnson -- instructed workers to dump asbestos down holes cut in the floors of each building. They also are charged with failing to wet the asbestos and leaving it in open containers. Mango has said in the past that the government is likely to dismiss the charges against Johnson and JMD because the two companies are now out of business. Hawkins' admissions -- he pleaded guilty to being an accessory after the fact -- is significant because it was his employer, JMD, that was accused of conspiring with Johnson. The company was hired to conduct air-sampling tests and other oversight work but, according to prosecutors, failed to do those tests properly. The indictment also charges a now retired state Labor Department inspector, Theodore Lehmann, and two city inspectors, Donald Grzebielucha and William Manuszewski, with falsifying inspection reports. In the year since the indictment was announced, the BMHA has made progress in resuming the asbestos abatement and demolition work at Kensington Heights. The authority has torn down one of the six towers and has removed the asbestos from a second tower awaiting demolition. ASBESTOS UPDATE: Fibro Warnings Around UNT Project Jolt Students ---------------------------------------------------------------- Monika Diaz at WFAA.com reports that students on their way to class at the Language Building at the University of North Texas in Denton were puzzled by the asbestos warning signs posted next to the entrance on Fry Street. "I'm surprised that no one said anything and the whole construction thing is happening," said student Melanie Villatoro. "I don't know if it's just in this part of the building. It's kind of worrisome." Other students had similar concerns . . . and questions. One of them e-mailed News 8 with video from inside the building. It showed students talking and studying near the project area. Jessica Hahn noticed a strange smell coming from the room. "I didn't think anything of it, but when I walked pass that, it kind of freaked me slightly, only because it was immediately in my face," Hahn said. Products containing asbestos, when disturbed, can release tiny fibers into the air. Inhaling them can cause serious lung problems, including cancer. According to UNT, workers are remodeling an office in the building. "It's tile flooring that has asbestos in it, which is very common in the late 70s," said UNT spokesman Buddy Price. "It is being removed by an EPA-permitted company, so it is very, very safe." Price understands the concerns the signs caused, but he said workers are taking precautions. They sealed the office with a protective cover, and an independent firm is continually testing the air quality. "Our first concern is the safety and welfare of our students, our faculty and staff," Price said. "If there was any danger at all, we would not be doing that work." The project started on Monday, Dec. 3. The work is expected to complete Wednesday, Dec. 5. ASBESTOS UPDATE: Bags of Fibro Found Under North Manitoba School ---------------------------------------------------------------- CBC News Manitoba reports that a northern Manitoba First Nation has shut down its only school amid fears about asbestos under the building. The Berens River First Nation's chief and council closed the school earlier, after construction crews found what appeared to be bags of asbestos under the foundation. "They took it and stored it underneath the school," Chief George Kemp told reporters in Winnipeg on Tuesday afternoon (Dec. 4). "If you're going to remove a dangerous material, you don't take it and put it underneath a school." The chief said the Frontier School Division recently conducted an asbestos abatement program at the school, but he wants to know why bags of asbestos were left behind. Kemp and the First Nation's lawyers called on the Manitoba government to investigate the matter. In the meantime, the school will remain closed until it is deemed to be safe, he said. "My concern right now is, you know, a lot of workers that have worked in that building have complained and complained and complained about being sick," Kemp said. In a statement, the province said the school division has made arrangements for an independent expert to fly to Berens River to inspect the school. "Unfortunately, based on our knowledge, this expert has been unable to get access to the school due to an order by chief and council," the province's statement read in part. "We hope community leaders will grant the expert access to the school to confirm it is safe so that students can return to class as soon as possible." The province said the Frontier School Division conducted air quality tests at the Berens River school in 2010, at the community's request, and determined that asbestos remediation needed to take place. The division hired a qualified asbestos remediation company to remove the material from the school safely, the province said. Berens River is about 300 kilometers north of Winnipeg. ASBESTOS UPDATE: Fibro Found In Vintage Steam Engine Contained -------------------------------------------------------------- Wilma Mccorkindale of The Southland Times relates that staff cleaning vintage steam engine Josephine were never at risk from asbestos found in the locomotive's hulk, Toitu Otago Settlers Museum director Linda Wigley says. Ms. Wigley said museum management followed strict procedures. Decontamination had immediately been carried out, eliminating risk. Dunedin community newspaper D Scene was told this week staff discovered the asbestos while cleaning the engine in readiness for display. The handling of the problem was delayed, sources told the newspaper. A large warning sign and emergency tape surrounded Josephine as specialists in protective clothing and masks worked on the engine in the museum's new foyer on Friday, Nov. 30. D Scene has been told the workers were applying polyurethane, despite the signage which indicated they were removing asbestos. D Scene photographed the scene minutes before a media gathering to witness the official handover of the almost-complete $40 million museum redevelopment project to Ms. Wigley. Recently, Ms. Wigley confirmed collections staff cleaning the engine discovered the asbestos. She could not recall how long ago. However, she expressed 100 percent confidence in the way the highly hazardous substance was handled, and said there was no delay in dealing with it. Correct protocols were followed in consultation with the Ministry of Business, Innovation and Employment, which incorporates the former Department of Labour. Staff were not asked to continue working on the engine after the asbestos was found, as far as she was aware. Exposure to asbestos can lead to lung cancer. Dunedin City Council issued a statement offering reassurance all was well with Josephine and that there was no risk to museum visitors from asbestos. ASBESTOS UPDATE: NDP Slams Conservatives' Support on Chrysotile --------------------------------------------------------------- The Sikh Sangat News (Ottawa) reports that speaking in the House on NDP motion M-381 concerning the responsibility of the government for the current state of the asbestos industry in Canada, New Democrat critic for Asia Pacific Gateway, Jasbir Sandhu (Surrey North) called on the Conservatives to stop supporting and promoting the production and export of dangerous chrysotile asbestos. "Despite the clear body of medical and scientific evidence that asbestos causes cancer and other serious health problems, Canada has sponsored and funded 160 trade missions in 60 countries to promote asbestos," said Sandhu. "The Conservatives have been giving $250,000 per year to the Chrysotile Institute, a lobby group from the asbestos sector that denies the medical consensus and promotes asbestos sales internationally. This is unacceptable." For years, Conservatives have worked to block the international consensus on adding chrysotile to the United Nations list of dangerous substances. "With this motion we are asking them to stop their wrong-headed support of asbestos once and for all, and establish an industrial restructuring plan for the industry in Canada", said Sandhu. Motion M-381 calls for the inclusion of chrysotile asbestos on the Rotterdam Convention list of dangerous substances, the establishment of an industrial restructuring plan towards sustainable economic sectors for communities affected, as well as an inventory of contaminated federal buildings. ASBESTOS UPDATE: Japan Must Pay JPY1.06 Billion to ARD Victims -------------------------------------------------------------- The Japan Times reports that the Tokyo District Court ordered the central government Wednesday, Dec. 5, to pay JPY1.06 billion in redress on behalf of workers who contracted asbestos-related diseases such as lung cancer at construction sites due to insufficient official countermeasures, but it let the makers of materials using the mineral off the hook. It was the first ruling to acknowledge the state's responsibility among class-action lawsuits filed with six regional courts over construction workers' exposure to asbestos. In the first ruling on the lawsuits, the Yokohama District Court in May ruled totally against the plaintiffs. In the suit filed with the Tokyo court, the plaintiffs -- former construction workers and the next of kin of deceased workers -- demanded a total of JPY11.8 billion in compensation from the state and 42 manufacturers of construction materials containing asbestos in connection with 308 former workers in the Tokyo metropolitan area who suffered asbestos-related diseases, including 199 who have died. The 308 workers used to deal with materials containing asbestos mostly in and after the 1960s. The plaintiffs demanded that JPY38.5 million be paid for each worker, accusing the state of failing to take protective steps until 2003, when it prohibited, in principle, the production of materials containing asbestos. They are also demanding that manufacturers be held responsible as well. While waiving the manufacturers' liability, presiding Judge Masamitsu Shiseki held the state responsible and ordered it to pay compensation in connection with workers who suffered asbestos- related diseases after engaging in indoor work in or after 1981. The central government argued that it introduced appropriate regulations after considering the available medical knowledge as well as social and economic conditions in a comprehensive manner. Asbestos, a naturally produced fibrous mineral, was used often in construction materials for insulation and fire protection. But its use was gradually restricted as it was found that inhaling the substance could cause lung cancer and other diseases. It was revealed in 2005 that residents near a factory run by machinery maker Kubota Corp. in Amagasaki, Hyogo Prefecture, suffered asbestos-related diseases. ASBESTOS UPDATE: Cleanup of Sydney's Power Substations Begins ------------------------------------------------------------- The Australian Associated Press reports that workers will be removing asbestos from some of Sydney's small underground power stations over Christmas in a bid to rid the power industry of the potentially deadly material. Asbestos will be removed from 10 small electricity substations around the city over the coming months, including at Circular Quay and Hyde Park, Ausgrid said. It comes after the Electrical Trades Union (ETU) released internal Ausgrid documents last month which showed about 49 cases of asbestos-related illness linked to the company in 22 years. The ETU had said there is still friable -- or easily crumbled -- asbestos at underground electricity substations and meter boards, and called on the electricity companies to undergo an audit and remove it. But an Ausgrid spokesman told AAP that the Christmas cleanup was part of the provider's "normal asbestos removal program" for more than 250 substations under the city's footpaths and roadways. He said most of the work will take place during the night to minimize disruption, with a small number of people set to experience interrupted electricity supply. "Asbestos was a common material used in buildings and for insulation throughout electricity networks before the 1990s," he said. "It was used as an insulating material for electrical wiring or cable bandages, in fire doors as well as in underground pits or substations, switchboard and cement sheeting or tiles." The removal and remediation of the asbestos will generally involve setting up an exclusion zone, air monitoring, and decontamination areas, he said. Anyone affected by electricity cuts will be notified of any planned interruption. But an ETU spokesman told AAP the removal of asbestos from Sydney's substations was "not a matter of coincidence." Following advice from the union about asbestos being present at the 10 locations, workers had been refusing to enter the sites, he said. ASBESTOS UPDATE: Oak Ridge Federal Building Cleanup In January -------------------------------------------------------------- WBIR.com reports that work will begin soon to remove asbestos from a federal building in Oak Ridge. The Joe L Evins Federal Building closed indefinitely back in June, after an annual inspection found asbestos in the heating and cooling units. The U.S. General Services Administration awarded the clean-up contract to Katmai Support Services, LLC. The work is expected to start in January and run through April. Hundreds of Department of Energy employees, support service contractors and Congressman Chuck Fleischmann's district office had to be moved from the federal building when the asbestos was found. They will continue working at other D.O.E. facilities and leased offices until the clean-up is finished. ASBESTOS UPDATE: CCS Pushes for Public Registry to Be Mandatory --------------------------------------------------------------- The Canadian Press reports the Canadian Cancer Society says Saskatchewan's move to make public a registry of government buildings that contain asbestos is a good first step. The society says Saskatchewan has shown leadership by being the first province in Canada to do so. But the group says the province should go further and make the registry mandatory for all public buildings. The registry is to include the legislature, court houses and equipment storage buildings. But it will be voluntary for schools, hospitals and health region buildings. The society says students, patients and staff deserve the same protection from asbestos, which can cause cancer if the fibers are inhaled. Asbestos is typically found in building materials such as insulation. It is not considered harmful if undisturbed, but renovations or construction work stir up hazardous fibers. ASBESTOS UPDATE: School Governors Take Over Cwmcarn High School --------------------------------------------------------------- BBC News South East Wales reports that a school closed after asbestos was found has been taken over by its governors. The 900-pupil Cwmcarn High School in Caerphilly county closed suddenly in October after a structural report identified asbestos in the main block. Parents have expressed concern at its long term closure but the school's foundation status means governors can assume full control of the premises. Caerphilly council expressed its "concern and disappointment." The school governors have been asked to comment. The council said a separate, independent investigation into asbestos management at the school was being carried out by the Health and Safety Executive, and would continue. It said the governing body would now "take full responsibility and liability for the site", and "plans by the council to commission a full and thorough asbestos survey have now been thwarted by the actions of the school governors." Council leader Harry Andrews said: "Our main priority has always been the health and wellbeing of pupils and staff at the school. "We took swift and decisive action when the scale of the asbestos problem was identified and we planned to undertake further investigations to discover the full extent of the problem before agreeing a way forward. "Unfortunately, the governing body have now frustrated this process by insisting that they take full responsibility of the site, as is their right as a foundation school, but we wanted to work with them to try and resolve this issue as quickly as possible." He added: "We will be writing to parents and staff explaining the implications of this decision. "Our key responsibility remains the welfare and education of the pupils and we will be closely monitoring the governors' actions at the school. "Parents can rest assured that the council will not allow any pupils to return to a building that poses any health risk to their children." The school closed after a structural report identified asbestos in the main block, and students are being educated at Coleg Gwent's Ebbw Vale campus for the rest of the school year. The report said asbestos in the roof may have been blown by the heating system and airborne fibers were 10 times higher than the accepted levels. The union Unison said at the time that demolition was the safest option for staff and pupils. The survey revealed the building "poses potential serious risk to health" and should be demolished, as recommended by a previous inspection. The school's website carries a petition from a parent support group, which says: "This document will be used to petition Caerphilly County Council and the Welsh Assembly Government for guarantees that our school 'Cwmcarn High' will NOT close indefinitely." The Welsh government ordered all schools to report on asbestos levels. ASBESTOS UPDATE: Anti-Double-Dipping Bill Clears Ohio Senate ------------------------------------------------------------ Julie Carr Smyth, Statehouse Correspondent for The Associated Press, reports that a bill aimed at curbing duplicate lawsuits over on-the-job asbestos exposure in a state with one of the nation's largest backlogs of such cases has cleared the Ohio Senate. Senators approved the divisive legislation Wednesday, Dec. 5. It would require workers to divulge all asbestos claims filed by or for them or face perjury charges. Proponents say the proposal prevents double-dipping by victims, who have two separate ways of pursuing damages: trusts set up by sometimes bankrupted companies to compensate victims, or lawsuits against active businesses. Opponents say the bill impedes legitimate claims. They say its passage makes Ohio the first state in the country to impose such claims restrictions. Similar legislation has been introduced in Louisiana, Oklahoma, Texas and West Virginia and in Congress. Senate changes still need House approval. ASBESTOS UPDATE: Ambler Project to Examine Impact of Fibro ---------------------------------------------------------- Thomas Celona of The Times Herald reports that as a child growing up on Maple Street in West Ambler, Ruth Weeks used to play outside all the time, climbing up and down, in and out of a huge pile nearby. "I thought it was snow," she said. That pile of "snow" she now knows was a pile of asbestos. Weeks' story isn't unlike those of most people who grew up in South or West Ambler. "We just didn't realize any risk," she said. Decades later, the full extent of the risk from asbestos isn't fully known, and a lot of questions remain. But one thing that's for certain is asbestos has had a huge impact on the Ambler community. The extent of that impact -- both medically and socially -- is the subject of a new project that will take a holistic view of how the Ambler area has been shaped by the legacy of asbestos manufacturing. Penn Medicine recently received a $1.2 million grant from the National Institutes of Health to create an educational program exploring the community's history with asbestos. Ambler emerged as an asbestos manufacturing town with the growth of the Keasbey and Mattison Co., which operated from 1897 to 1934. Keasbey and Mattison's legacy remains clear in the Ambler skyline with the Ambler Boiler House, along with several remaining manufacturing buildings in South Ambler. Asbestos production continued through the 1980s before the risks and contamination of asbestos were realized. The asbestos production led to two EPA Superfund sites: the Ambler Asbestos Piles -- often called the "White Mountains" -- in South Ambler, which lies in Ambler Borough, and the BoRit Asbestos site across Butler Avenue in West Ambler, which falls in Ambler, Upper Dublin and Whitpain townships. "We have been interested in the issues out in Ambler for a couple of years now," said Dr. Frances Barg, an associate professor of family medicine and community health at UPenn and the principal investigator for the new grant project. Her colleague, Dr. Edward Emmett, a professor of occupational and environmental medicine, has become involved in the issue, serving on the Community Advisory Group for the BoRit site. "One of the things that he wanted to understand better was how people's lifestyles might have," Barg said. "What's the relationship between someone's working conditions, the activities they did outside of work, how that might have affected the kinds of exposures they had to asbestos?" With Barg's expertise in anthropology and Emmett's in medicine, they decided to team up for a project that would look at both the medical and social impacts of asbestos in Ambler. They applied for the NIH grant, and after more than a year of waiting, they found out in late summer they would be receiving the grant, according to Barg. The project will explore two main issues, the first being the uncertainty that exists around asbestos. "There's a lot of information out there and a lot of misinformation out there," Barg said. "We know some things about asbestos, but we don't know everything about asbestos." The project will aim to clear up misconceptions and provide information to residents about exactly what is and is not known about asbestos and its impact on human health. The second aim of the project will examine the broader social and community impact asbestos has had on Ambler. "The other thing we heard very loud and clear is people are worried about more than just their health," Barg said, noting they are concerned about the community and how it moves forward. "We think it's very important for people to be able to talk about, in a public way, what this has meant to them so scientists can understand the broader effects asbestos has had on the community." The grant covers five years of work by Barg and her team. "Our plan is to spend the first year talking to people and trying to learn about what are the issues that people want to have information about," she said. "We would really like to hear from community members, from scientists, from experts about what people feel are the important issues we all need to learn about." The team will then work to collect as much information as possible about the different subject areas, with the goal of creating a exhibit at the Chemical Heritage Foundation in Center City by the third year of the project. The exhibit would display recorded interviews, documents, photographs, life stories, news accounts and scientific data, according to a press release about the grant. In addition to the exhibit in Center City, all the information will go into an online database, and the team also hopes to do something in Ambler, according to Barg. While the project will focus on Ambler, Barg said there's the potential for the study to become a case study for similar communities. "I think that one of the things that is important about Ambler is that there are lots of communities like Ambler where an industry was vital to its health . . . and that industry may have had different kinds of problems related to it, maybe in terms of health. Some of those industries may even still be operating," she said. "The question is, 'How does the community deal with the ramifications of being located near an old industrial site that may have had an effect on the people in the community?'" ASBESTOS UPDATE: Non-Friable Fibro Found In Glenunga Playground --------------------------------------------------------------- Emma Altschwager of The Eastern Courier Messenger reports that asbestos found in a Glenunga playground has posed a "minimal risk" to the public, Burnside Council says. Burnside's chief executive Paul Deb said the asbestos fragments were found in a Kingsley Reserve playground and in sheeting and pipe under a recently planted vegetable patch at Glenunga Croquet Club. Council staff found the fragments during a routine asbestos investigation of the Kingsley Ave park this week. "The vegetable patch and playground will be closed until any contamination is resolved," the statement said. Mr. Deb said the asbestos posed a "minimal risk" to the public because early testing showed the fragments were "non-friable", meaning they were less likely to be fibrous and airborne. "(The) council is liaising with those who have been known to come into contact with the soil in both areas and will keep them informed," he said. ASBESTOS UPDATE: Fibro Find at Cayon High School Relocates Classes ------------------------------------------------------------------ Jenise Ferlance at SKNVibes.com reports that on the heels of the Basseterre High School air contamination issue, another high school has found itself in a similar situation. The discovery of asbestos was made in an unused building at the Cayon High School (CHS) and has resulted in that structure being scheduled for demolition. SKNVibes learned that the asbestos was found through a crack in the wall sometime during the school term (Sept. to Dec.) and that the matter was reported to the Ministry of Education. This media house also learned that an environmental health officer visited the campus to test for asbestos although it was believed to have been removed in its entirety in the 1990s. The Ministry of Education notified the staff at the CHS that the demolition process would begin anytime this month. A sign is expected to be posted to alert the public of the demolition. The building which is expected to be demolished is one that has not been used for a number of years and recently served as a SELF book storage room. This demolition action comes almost three weeks after teachers at the Basseterre High School began a sit-in following unsuccessful attempts to have their concerns about unsafe environment at the school addressed. The teachers were of the view that chemicals from abandoned laboratories were causing them and students to fall ill. Through the Teacher's Union, they announced that they would not be holding classes until they were assured that the environment within which they worked was safe. A team of researchers from Trinidad came and did an assessment which ruled out radioactivity as well as a number of gases, but results for tests done for biological agents and respiratory particulates were not readily available. Since then classes have been relocated to Warner Park and the Old Girl's School until the end of the school term. The work on the building is expected to be completed before the start of the next school term. ASBESTOS UPDATE: Liberty Mutual Objects to NewPage's Exit Plan -------------------------------------------------------------- Lance Duroni of Law360 reports that Liberty Mutual Insurance Co. asked a Delaware bankruptcy judge on Thursday, Dec. 6, to reject NewPage Corp.'s reorganization plan unless the paper manufacturer takes steps to preserve the insurer's rights under certain asbestos liability policies. Liberty Mutual said in an objection that the plan contains an "extraordinarily broad" exculpation provision that could be read to release NewPage from an obligation to reimburse the insurer for defense and indemnity of asbestos claims. In 2005, NewPage assumed liabilities for asbestos-related claims at mills it purchased from MeadWestvaco Corp. for $2 billion, and Liberty Mutual asserts subrogation rights under asbestos policies it had with the former owner, according to the objection. The exculpation provision also "purports to release the debtors from gross negligence, willful misconduct and actual fraud," Liberty Mutual said. "This is contrary to law." NewPage cleared a path out of bankruptcy in October when it brokered a deal among its warring creditor factions with the help of a mediator. The resulting plan hands all the equity in the reorganized company to senior noteholders owed $1.7 billion, while preserving all of its various businesses and some 6,000 jobs. But according to Liberty Mutual, the plan appears to allow NewPage to alter the terms of the insurance policies and potentially extinguish certain protections for the insurance company. "This court cannot rewrite or change the policies, which is what the plan purports to do," Liberty Mutual said. The insurer demanded that NewPage insert "super pre-emptory" and "neutrality language" so that its rights and defenses under the policies are preserved. Separately on Thursday, Dec. 6, plaintiffs in an antitrust action against NewPage rival Stora Enso Oyj also voiced opposition to the plan. A NewPage settlement with Stora Enso enshrined in the plan contains releases that could slash the Finland-based company's liability in the price-fixing suit by 95 percent, "in violation of the Bankruptcy Code and the well-established requirements in this district for debtor-granted releases given the facts of this case," the objection said. NewPage's plan is also opposed by the state of Wisconsin, which complained last week that the plan improperly handcuffs regulators from enforcing the company's environmental cleanup duties at four mills in the state. In addition to handing control of the company to senior noteholders, the plan also provides second-lien noteholders and certain unsecured creditors with a pro rata share of $30 million in cash and first dibs on proceeds from a litigation trust -- concessions the senior noteholders gave up in a settlement forged through mediation with U.S. Bankruptcy Judge Robert D. Drain. U.S. Bankruptcy Judge Kevin Gross will weigh approving NewPage's plan at a hearing Dec. 13. Miamisburg, Ohio-based NewPage -- which is majority owned by private equity giant Cerberus Capital Management LP -- filed for court protection in September 2011 as the shift toward digital media reduced demand for its coated paper products. The company listed $3.4 billion in assets and $4.2 billion in debt in its bankruptcy petition. The company is the largest producer of coated and specialty papers in North America, boasting $3.5 billion in net sales in 2011. Its products are used mostly in magazines, corporate annual reports, high-end advertising brochures, direct mail advertising and other high-gloss applications. Liberty Mutual is represented by Robert B. Millner and Christopher D. Soper of SNR Denton US LLP and by Charlene D. Davis of Bayard PA. The antitrust plaintiffs are represented in the bankruptcy by Michael S. Etkin and Ira M. Levee of Lowenstein Sandler PC. NewPage is represented by Martin J. Bienenstock of Proskauer Rose LLP and by Pachulski Stang Ziehl & Jones LLP. The case is In re: NewPage Corp. et al., case number 1:11-bk- 12804, in the U.S. Bankruptcy Court for the District of Delaware. ASBESTOS UPDATE: Council Assures Safety at Vaughan Primary School ----------------------------------------------------------------- Emma Innes of The Harrow Times reports that Harrow Borough Council has spoken out to reassure people that it does not take "the slightest risk" with children's health after concerns were raised over asbestos at a primary school. And a senior councillor has suggested that controversial expansion plans at the Vaughan Primary School would solve the problem -- by demolishing and rebuilding some buildings. The council's comments come after the chair of governors at the school, in The Gardens, West Harrow, wrote to councillors expressing her concerns about asbestos in the school's buildings. Mitzi Green, portfolio holder for children, schools and families, said: "The safety and wellbeing of children and young people throughout the borough is of paramount importance to us and we do not take the slightest risk when it comes to their health. "Asbestos was a commonly used building material prior to being banned in the mid 1980s and it only poses a health risk if disturbed. "An asbestos management survey was conducted at Vaughan Primary School in September 2010 and an asbestos management plan issued to the school. "This is in accordance with the Control of Asbestos at Work Regulations 2002 and is to ensure that all areas which contain asbestos are not disturbed. "If the current planning application is approved and the school is rebuilt, all asbestos will be removed and this potential risk to health will be completely eliminated. This is in the best interest of all parties and is proactive and forward thinking by the council." She added: "All measures will be taken in accordance with the stringent regulations to ensure that children and teachers' health is not put at risk during any asbestos removal. "A review of the school by the Harrow Schools Improvement Partnership in October concluded that children and parents felt the school was safe." Councillor Green's comments come after chair of governors Pippa Lee wrote a letter to councillors to show her support for plans to redevelop the school. One of the reasons she gave for supporting the redevelopment was that the governors are concerned about asbestos. She wrote: "The junior school was built more than forty years ago as a temporary measure and was not expected to last for more than 20 years. "There are issues with asbestos and as time goes by this is going to become a serious health risk." ASBESTOS UPDATE: Mansfield Meso Sufferer Calling Out Former Peers ----------------------------------------------------------------- A Mansfield man who developed mesothelioma after being exposed to asbestos more than five decades ago has appealed to former colleagues to come forward and help in his fight his mesothelioma claim. David Martin, 68, was diagnosed with the disease in January 2012 -- more than 50 years after he started a five-year apprenticeship as a joiner when he left school at the age of 15. Lesley Francois, an industrial disease specialist at Fentons Personal Injury Solicitors LLP, said that in October 2011, Mr. Martin, of Abbott Road, developed a persistent dry cough which refused to settle. "Two months later, he suffered breathlessness whilst out walking in Derbyshire with his wife Margaret," said Mrs. Francois, a solicitor with the firm. "After visiting his GP, he was referred to Kings Mill Hospital where x-rays and a CT scan revealed that both his lungs had thickened and were filled with fluid. In January, a biopsy confirmed Mr. Martin had developed mesothelioma, a particularly aggressive cancer of the lungs caused by exposure to asbestos." From leaving school, Mr. Martin began working for a construction and engineering company named Harold Ashley & Son Ltd, based at Church Hill in Mansfield Woodhouse, Mansfield. "They built schools and other public buildings such as health centers, fire and ambulance buildings, libraries and structures for the Ministry of Defence," said Mr. Martin. "They specialized in the construction of permanent, prefabricated and easily constructed buildings, known as 'CLASP systems.' From the 1950s onwards, asbestos materials were used extensively throughout these buildings -- within boiler houses, ceilings, wall and floor tiles as well as around pipe work and heating systems. "My job initially involved fixing doorframes, cupboards and skirting boards, working alongside laggers who would mix an asbestos paste in large tubs before coating the material onto pipe work within the boiler houses," he added. "The space inside the boiler houses was extremely limited and I can remember how both the clothes the laggers wore as well as the air we breathed in each day was always thick with asbestos dust." After qualifying as a joiner in 1964, Mr. Martin remained at Harold Ashley & Son Ltd until 1974, during which time the company was contracted to work on a number of sites including West Notts Technical College, The Sutton and Ashfield Fire and Ambulance Station, Chilwell Ordinance Depot and Tupton Hall School in Derbyshire. "I was frequently exposed to asbestos in all these places as my job involved cutting, sanding down and installing Asbestolux sheets, boards and ceiling tiles," said Mr. Martin. "It was always extremely dusty and because there was never any ventilation, the air we breathed was always full of asbestos fibers. No-one ever warned us about the dangers of asbestos and I remember being told that Asbestolux was completely safe to work with. "We were never provided with proper face masks like they have now, except for once when I was given a metal frame mask which was completely inadequate and provided no protection whatsoever," he added. "In addition, we were never provided with any kind of protective clothing, so every time I went home, I was always coated in asbestos." After leaving Harold Ashley & Son Ltd in 1974, Mr. Martin worked at Kirk Hallam Community Technology and Sports College in Ilkeston, Derbyshire, from 1976 until 1995 as a technology teacher, and again from 1997 to 2011 as a part-time school technician. The school was made up of a number of CLASP buildings and asbestos was found throughout the walls and window panels as well as within the floor and ceiling tiles, boiler house, changing rooms, showers and toilets. "I used to replace doors, ceiling tiles and locks as well as any other maintenance work that cropped up," he added. "Despite all the safety measures in place, I believe I still could have been exposed to and inhaled asbestos fibers that were released into the air from damaged or deteriorating asbestos materials contained within the walls, floors and ceilings simply as a result of general wear and tear throughout the school." Mrs. Francois, who is representing Mr. Martin, explained that in order to secure him the compensation to which he is entitled, it was vital that witnesses come forward to confirm that he was exposed to asbestos during his time at either Harold Ashley & Son Ltd or Kirk Hallam Community Technology and Sports College, and to help identify both the firm's and the school's former insurers. "It can take several decades after someone is exposed to asbestos for any related symptoms to become apparent, which can make finding witnesses and information regarding former insurers extremely difficult to obtain," said Mrs. Francois. "In regard to Harold Ashley & Son Ltd, which ceased trading in 1974, the problem we now face is tracing David's former colleagues as well as the insurers of the company at the time he worked there and was exposed to asbestos. "We are particularly keen to track down anyone who worked in the administrative side of the firm at Portland Street, Mansfield Woodhouse, Mansfield or anyone who might remember which company provided insurance for the firm around that time," she added. "David finished chemotherapy in September and he is due to be reviewed in January. Unless we can track down the insurers and prove that he was exposed to asbestos, he may go uncompensated for the terrible condition he has developed as a result of simply working diligently to support his family throughout his life." Can you help? If you remember working alongside David Martin, if you worked for Harold Ashley & Son Ltd, based at Church Hill, Mansfield Woodhouse, Mansfield between 1959 and 1974, or if you worked at Kirk Hallam Community Technology and Sports College in Ilkeston, Derbyshire, from 1976 until 2011, or think you can help in any way, please contact Lesley Francois on 0844 893 6685. ASBESTOS UPDATE: Middleton Grange Center Shop Closes for Abatement ------------------------------------------------------------------ The Hartlepool Mail (UK) reports that a shop unit in a busy indoor market has been sealed off while specialist workers remove asbestos from its walls. The former home of Homefair Blinds, and Rogers sweet shop, in Middleton Grange Shopping Centre's Indoor Market, became vacant recently. So before a new tenant takes over the unit, shopping centre bosses say they decided to start work on removing the potentially- dangerous substance, in the form of asbestos insulating boards, as a matter of course. Centre manager Mark Rycraft said he was aware of the asbestos in the shop from when the centre was built 40 years ago. And he said work has started on its removal and should be completed within a few days. He said: "When a tenant moves out its practice to remove asbestos as part of normal property management really. "It was installed in there when the centre was built around four decades ago because asbestos was a commonly used substance back then and it was used in wall boarding, and ceiling tiles as well. "We remove it out of good practice, spending thousands of pounds to get asbestos removed, so that when a tenant goes in then it cannot be accidentally disturbed." He added: "We started work on this unit on Monday, Dec. 3, removing asbestos from the walls and it should be completed within the next few days." Mr. Rycraft said there are prospective tenants who want to take over the unit but he is as yet unsure of which company it will be. ASBESTOS UPDATE: ADRI's "Betty" Visits Blacktown on Awareness Week ------------------------------------------------------------------ The Blacktown Advocate reports that The Asbestos Diseases Research Institute's caravan-sized house, "Betty" visited the Blacktown Civic Centre to highlight the danger of asbestos when renovating or maintaining homes as part of Asbestos Awareness Week. Institute director Professor Nico van Zandwijk said Australians had to stop being complacent about how they worked with asbestos. "In the past, those affected by asbestos related-diseases were exposed to raw fibers in the mining and manufacturing process," he said. Data shows that almost every Australian home built or renovated before 1987 is likely to contain one form of asbestos and may lead to mesothelioma (an incurable asbestos-related cancer) if people are exposed to it during renovations of brick, weatherboard, fibro or cladded properties. "Education is our first line of defense in preventing the crushing third wave of cancers caused by exposure," Prof. van Zandwijk said. Asbestos is often found under floor coverings, behind walls and near floor tiles, cement floors, ceilings, eaves, garages and fences. ASBESTOS UPDATE: Suit v. Georgia Pacific, et al Proceeds to Trial ----------------------------------------------------------------- Cy Ryan of The Las Vegas Sun reports that the Nevada Supreme Court says it is taking a "balanced approach" in cases where an individual claims his exposure to asbestos dust caused lung cancer. The court has ruled that the survivors of Randy Holcomb can proceed to trial in Las Vegas in their suit against three companies that used products that emitted asbestos dust in construction jobs. The unanimous decision, written by Chief Justice Michael Cherry, overturns the pre-trial summary judgment by District Judge Douglas Herndon in favor of Georgia Pacific, Kaiser Gypsum and Kelly Moore Paint Co. Holcomb died in December 2008 in Las Vegas, and his widow and four children filed suit claiming his exposure to the asbestos in jobs in Florida and Nevada caused his mesothelioma or lung cancer. The court said that for the case to proceed from the pre-trial and summary judgment stage to trial, the injured must produce evidence "that supports an inference of probable exposure to the defendant's asbestos product." It said there must be a showing that the decedent was exposed on a regular basis over an extended time to the asbestos and it is reasonable to infer the exposure caused the mesothelioma. It is then up to a jury to decide if the exposure was sufficient to cause the lung cancer. Cherry wrote, "We take a balanced approach to find a causation test that is not overly rigorous or too relaxed in order to ensure protection for both manufacturers and consumers." The court said the family produced evidence to meet the "minimum burden" that showed Randy was exposed to the asbestos dust in order to move the case to trial. It said the jury must decide whether this exposure cause the death of Randy. The court upheld the summary judgment granted in favor of Union Carbide saying the Holcomb family failed to show the asbestos in products used by the three companies came from Union Carbide. ASBESTOS UPDATE: Altnagelvin Hospital Project Gets GBP1 Million --------------------------------------------------------------- The Derry Journal (UK) reports that asbestos has been discovered in the roof space of Altnagelvin Hospital the 'Journal' can reveal. A fund of GBP1 million to assist development plans for the site was announced on Dec. 6. Asbestos, which is a serious health risk, is currently banned by the European Union but was in the past commonly used in the construction industry. The material was discovered in the roof of the tower block. A removal operation had been underway prior to the recent fire at the hospital but sources confirmed no workmen were present when the accidental blaze ignited. A Western Health and Social Care Trust (Western Trust) spokesperson confirmed: "All patient areas on the Altnagelvin Hospital site have been reopened with the exception of Wards 9 and 10. We can confirm that asbestos was being removed from the roof of the hospital prior to the recent fire incident as part of a planned on-going program. "As confirmed by the Health and Safety Executive Northern Ireland who visited the hospital after the fire, no members of the public or hospital staff were exposed to asbestos during this time." Meanwhile at the December Trust Board meeting on Thursday, Dec. 6, further tributes were paid to the efforts of staff and the emergency services. Western Trust Chairman, Gerard Guckian said: "Our staff showed tremendous leadership and resilience during and after the incident. Staff have kept the hospital operational and worked tirelessly to limit any disruption to patient care. This is truly remarkable." Western Trust Chief Executive, Elaine Way said: "It has been almost two weeks since the fire incident occurred. Since then our main focus has been on ensuring patient care continues in a safe and comfortable environment. We have therefore secured additional funding of almost GBP1million to accelerate the planned rolling program of development for the hospital site. Following confirmation that the fire was not as a result of the fabric of the building, the Trust has decided to reopen Ward 8 for the care of patients who are mobile. This will be kept under review whilst the Trust continues with the wider rolling program of developments for the Altnagelvin Hospital site." ASBESTOS UPDATE: Tests Find Mold, Fibro at PS114Q in Belle Harbor ----------------------------------------------------------------- Darla Miles of The Eyewitness News reports that it turns out parents who were concerned, and complained about potential mold at a storm-damaged Queens school had a good reason to be worried. Tests have found mold and asbestos at PS 114Q in Belle Harbor. This is a problem some parents say they saw coming. "We have seen the mold grow in our own homes, so we knew that the school would be in a similar position as our homes were," said parent Irene Doherty. The auditorium had to be sealed off, and parts of the stage where the mold was found had to be removed, according to an environmental study that was conducted Wednesday, Dec. 5. Asbestos in a crawl-space also needs to be removed. School re-opened, but parents found out two days later that the auditorium should not have been open to the children. They immediately closed down, and children have not been in the wing at all. After Sandy, the Department of Education said that the entire building was cleaned, and it passed air quality testing. A letter sent out to parents on Friday, Dec. 7, played out a plan of action, and states, "We hope this information will help alleviate any concerns that you may have, and reassure you that the conditions in PS 114Q are safe for children and staff." Not only are crews working all weekend long to remove the mold and asbestos, the results of weekend long mold and air quality testing will be delivered first thing Monday morning to the principal before kids return to school. ASBESTOS UPDATE: Valley High School Abatement Project Initiated --------------------------------------------------------------- The West Des Moines Community Schools Board of Education was scheduled to hold two public hearings, a workshop on the district's audit report and budget, and regular meeting Monday, Dec. 10. The WDMCS Board of Education will hold a workshop session to review the district's most recent audit report. In addition, WDMCS CFO Paul Bobek will provide an update on the district's budget. The first public hearing is set so interested individuals can express their views on the proposed Valley High School Phase 3B 2013 Asbestos Abatement Project. The work to be performed includes removal of interior asbestos in rooms on the northeast corner of the building and portions of the auditorium. The abatement work at Valley High School will be conducted on designated weekends and breaks starting Jan. 11, 2013. Areas slated for abatement will be closed off and isolation barriers will be installed. Containment measures will also be implemented. All work will be conducted according to the EPA's published guidelines and standards. Air quality reports will be posted on the Valley website and will also be available in the Valley office. The base bid from REW Services Corporation's in the amount of $197,675.00 is being recommended for approval by the school board for the Valley High School Phase 3B -- 2013 Asbestos Abatement Project. ASBESTOS UPDATE: Toxic Dumper at Councilor's Home Remains Unnamed ----------------------------------------------------------------- Melinda James of ABC News (Aus) reports that a man has been fined $1,200 dollars for failing to tell police who was driving a ute that dumped a trailer load of asbestos in a Wollongong City Councilor's driveway. The asbestos was left outside Councillor Greg Petty's Helensburgh home one night in April this year. Brett Blackwell was charged with failing to tell police who was in charge of the vehicle at the time. The court found that while the white ute is registered in the name of Mister Blackwell's 92 year old grandmother, she had nominated him as the person responsible for the car. Brett Blackwell told police several different people drive the ute on a regular basis but he didn't know who was driving it that night. He also said he's since heard the material was dumped by a contractor who was unhappy with Councillor Petty and drives an almost identical ute. But Magistrate Les Mabbutt said he was satisfied that Brett Blackwell is responsible for the vehicle captured on CCTV footage at Councillor Petty's home and Mister Blackwell did not fulfill his obligation to tell police who was driving at the time. ASBESTOS UPDATE: Fibro Forces Layoff, Closure of Auction Firm ------------------------------------------------------------- Gary Adshead of The West Australian reports that an auction company has been forced to close its Welshpool operation and lay off staff after potentially lethal asbestos dust was found throughout the building. The severe health risk to employees is at the centre of a legal dispute between the tenant of the warehouse, McLernon's Auctions, and the building's long-time owner, renowned WA cardiologist Krishnanmurthi Somers. Peter McLernon learnt of the chrysotile asbestos contamination through a report this year and immediately vacated the building and reported the health risk to WorkSafe. But he has since confirmed the existence of a 2005 asbestos report into the building and is trying to determine who received copies of the document. He said he still had emails from that year which showed he tried to get a copy of the report at the time from the building's leasing agent. "I stayed in the premises for another seven years after that report and I had about 30 staff go through there," Mr. McLernon said. "It's causing a lot of stress now and will continue to for many years." Mr. McLernon's lawyer John Hammond believes that his client is entitled to more than $300,000 in damages for loss of earnings and to cover annual medical tests for all current and former staff. That has been countered by lawyers acting for Professor Somers, who argued in August that until there was evidence someone had suffered ill-health, Mr. McLernon had no case. Professor Somers, who has had a distinguished medical career at Royal Perth Hospital, told The West Australian his lawyers were continuing to deal with the matter. "It would be inappropriate of me to make any comment at this point," Professor Somers said. On the back of the latest asbestos report, anyone who enters the Welshpool building must wear a protective mask and unless the warehouse is decontaminated it will have to be condemned. According to WorkSafe, the use, importation or sale of chrysotile asbestos has been banned in WA since 2003. The agency said it had also been made aware that a 2005 asbestos investigation was done at the building and would be interested to know who was made aware of its findings seven years ago. ASBESTOS UPDATE: Fibro in Wakefield Theatre to be Abated January ---------------------------------------------------------------- The Wakefield Express reports that asbestos was found at Theatre Royal Wakefield. The discovery was made under the stage during an inspection last month and that area has now been sealed off. But the theatre remains open as normal and work to remove the asbestos will begin in January next year. Executive director Murray Edwards said: "The main thing is we did not anticipate it but we found it, we dealt with it, and we have made it safe. "We were obviously very concerned to make this discovery and acted immediately to make the area safe." Mr. Edwards said the theatre did not anticipate anything coming up in the inspection but stressed that the building was perfectly safe for performers, staff and public. He added: "We are working closely with Wakefield Council and following agreement with environmental health officers, the under- stage area has been sealed off. "Air tests in the surrounding areas have confirmed there is no contamination outside the affected space and these tests will be carried out regularly through the run of our annual program. "Once the pantomime has closed, the removal process will start prior to the start of the spring season in late January 2013." ASBESTOS UPDATE: Consett Site's Contaminated Land Risk Assessed --------------------------------------------------------------- Barry Kirkham of The Consett Magazine reports that a contaminated land risk assessment has been carried out at the controversial Consett Academy school development site. Asbestos, carbon monoxide and mercury have all been reportedly identified at the Belle Vue site. These findings are being considered a potential risk to the health of humans. The report was completed by a geotechnical engineer Daniel Freeland, at the request of Carillion Building North. Carillion Building North were commissioned by the local authority to build the school and new leisure centre. Durham County Council want to build a GBP44million Academy on the site. The development of the new Consett Academy has already been through many obstacles. This new report has been submitted to the council. Back in August 2009 contamination fears were cited by council bosses as a reason for overlooking the former steelworks site a place to build a new school. Durham County Council's Cabinet voted to build the school on the Belle Vue site instead of the seven hundred acre former steel works site at Berry Edge. Despite this concern of the former steelworks land being contaminated; new homes, a restaurant and a new supermarket (Tescos is being built) are all features of the former steelworks site here in 2012. The contaminated land risk assessment has been said to be a health concern to construction workers and "site end users." "Site end users" are teachers, pupils, and anyone else who will eventually attend Consett Academy. "The contaminated land risk assessment has identified that siteworkers are most at risk from the contamination." "The assessment has identified that the risk to end site users is low, provided that localized areas of contamination are excavated in areas to be defined as a residential land use i.e. the school buildings and associated soft landscaping," said Mr.Freeman. The main dangers are from the inhalation and ingestion of materials found in the subsurface soil, dust, and/or vapor. "If asbestos containing material is encountered or anticipated then it is recommended to keep the material wet by damping it down so as to prevent loose fibers from becoming airborne. "If potential asbestos is identified during siteworks then work should cease in the area and the advice of an asbestos specialist should be sought regarding further actions. "The risk from carbon dioxide is considered low but gas protection measures are required," said Mr. Freeman. The report is to be included in the application to the planning department for permission to remove the existing leisure centre, swimming baths, and football club. The Civic Centre which was once part of the site has already been demolished. The council's Highways Committee could be expected to reconsider an application from Consett Green Spaces Group (CGSG), which has clearly opposed the new academy development, and wishes to have the land registered as a village green. The Highways Committee is believed to be considering the application on Jan. 17 2013. If the application is considered appropriate, the planning application would then have to be considered by the council's county planning committee on Feb. 5 2013. ASBESTOS UPDATE: Ohio Senator Contests Substitute House Bill 380 ---------------------------------------------------------------- The Northeast Ohio Sun News reports that State Sen. Michael Skindell, D-23 of Lakewood, on Dec. 10, voted against substitute House Bill 380. He said, in a press release issued by his office, that the legislation will make it much harder for Ohio workers who suffer from asbestos-related diseases to successfully sue for compensation. "This legislation is another example of the 129th General Assembly's war on Ohio workers," Skindell said in the release. "The bill is creating additional procedural and evidentiary hurdles, roadblocks, rules and other requirements that will make it impossible for a dying asbestos plaintiff to get a fair trial on their case." This legislation dictates how a lawsuit is to be handled, step-by- step from filing of the lawsuit through jury verdict, he said. According to Skindell, Substitute House Bill 380 permits a corporate defendant to force a dying asbestos worker to file a claim against an asbestos trust, even in situations where there may be no evidence that the worker was exposed to the product of the trust. "This bill is no more than an extreme legislative effort to tilt the scales of justice in the courtroom strongly in favor of the corporate defendant," Skindell said. "The scales of justice are not out of balance in Ohio. There is no need for this extremist corporate legislation," Skindell added. ASBESTOS UPDATE: HSENI Organizes Free Training for Local Tradesmen ------------------------------------------------------------------ UTV News reports that according to the General Register Office, up to 75 deaths per year in Northern Ireland have asbestosis and/or mesothelioma listed as the primary or secondary cause of death. There also may be approximately another 40 lung cancer deaths per year where asbestosis and/or mesothelioma has played a contributing factor. The Health and Safety Executive for Northern Ireland (HSENI) say they expect this number to rise and has organized free training to help local tradespeople protect themselves from asbestos. The new scheme, 'Asbestos Training Pledge NI', will run for 12 weeks from Jan. 7 to March 29 2013. Any property built or refurbished before the year 2000 is likely to contain asbestos. Common places where asbestos materials are found include ceiling tiles, coating on ceilings, walls and stairwells and insulation on pipes. A legal duty to manage the risk from asbestos belongs to anyone responsible for the maintenance and repair of non-domestic premises. Entitled the 'duty holder', they must inform tradesmen if asbestos is present in a building they are working on. 'Duty holders' must also make sure they have an asbestos register, and to make it available on request. Tradespeople are encouraged by the HSENI to ask the 'duty holder' to see the asbestos register before they start work. HSENI's Head of Workplace Health, Cyril Anderson, said: "Everyone should avoid working with asbestos if possible. But, if you need to work with asbestos then make sure you have proper training before you start. "By raising awareness of the dangers of asbestos and by promoting measures to help reduce its harmful effects, we can help protect the health of our workforce, and save lives. "Asbestos Training Pledge NI offers a great opportunity to learn more about the dangers from asbestos and follows on from HSENI's 'Hidden Killer' and 'Duty to Manage' awareness campaigns. "I'd encourage everyone who through their work may come into contact with asbestos to take advantage of this free training and to book a place today." Christine Winter, of the Independent Asbestos Training Providers (IATP), said: "Asbestos destroys individuals, families and communities. IATP members are proud to be contributing to the Asbestos Training Pledge NI initiative." The training is free of charge, but places are limited. ASBESTOS UPDATE: Shelby Officials Parents Montevallo Is Safe ------------------------------------------------------------ Martin J. Reed of Alabama Live (al.com) reports that on Dec. 10, concerned parents levied questions and criticism at Shelby County School District officials over ongoing worries about the safety of Montevallo Elementary School due to mold, asbestos and other health issues. "I believe it's clean but I don't believe it's safe -- as safe as you're all wanting to put out -- because if it is, bring your own kids to the school," Preston Bell said, stirring many in the crowd of more than 150 gathered in the institution's cafeteria to applaud. During the meeting with some parents elevating their voices at the education officials, school district superintendent Randy Fuller maintained the building is safe for students based on air quality test results and work to clean and correct mold issues in the facility. "We would not dare put your children in harm's way," Fuller said. Bill Young, president of Pelham-based ERG Environmental that conducted air testing in the building, stood by the facility's safety. In response to a question about allowing his own children to attend class in the building, he said, "My answer was absolutely." "Mold is everywhere," he said. "It's in our hospital and nursing home, and it's in our school." Despite the assurances provided, many in the crowd remained skeptical about the safety claims. Kenneth Dukes, whose 6-year-old daughter is a first-grader, asked for a guarantee that his child in five or 10 years will not become ill from attending class at the school. "Can we be assured of that as a parent?" he asked. "I promise all of you, you have higher mold in your houses" than in the school, Young said. A focal point at the meeting was children's health concerns identified by parents, dozens of whom are keeping their children out of the school. Beth Boyd said nosebleeds had started in her 5-year-old son in kindergarten and 7-year-old daughter in second grade in late August or early September after attending the school. "And neither one of them has ever had a nosebleed in their entire life," Boyd said. "I kept them (out of school) all last week and she has not been picking at her nose as much and he hasn't been sniffling as much." Sitting next to Preston Bell, Kimberly Bell said her daughter has been diagnosed with bronchospasms "that she will have for the rest of her life." The mother believes the school's mold and asbestos has caused the health condition. "As soon as they came back to this school they're sick," she said of her children, one she took to the doctor earlier in the day. "When he's not at this school, does he have any of these symptoms? No." In an interview during the meeting, Dukes said the school district is slow in addressing the issues at the facility. "My prayer is it does not affect our children based on what has happened. That's why I'm afraid," the 25-year bus driver for the district and lifelong Montevallo resident said. "I just hope the damage isn't done." Wearing a doctor's mask over his mouth at the meeting, Karry Honeycutt said he is ill himself while he worries about health issues in the building. "I do have severe allergies and asthma, and if they do have something in here," he doesn't want it, the parent with a daughter each in first and fourth grade said. Some in the audience supported the work of the school district at Montevallo Elementary. "If I thought there was a problem I would not put my kids in harm's way," said Carla Layton, program specialist for special education with the school district. "My fifth-grader would not be here." Montevallo Mayor Hollie Cost said she has a child at the school. "I have not kept him out one day because I'm worried about mold," she said. "I care about the school district. I trust the school district." Fuller said he wants parents to understand the building is safe and regain trust in the school district. "Quite frankly I didn't realize there was a breakdown in the line of communication" with the central office and parents, he said. He said the school district is working to "clean the whole building from top to bottom." Additionally "to give you peace of mind," the district will do "room-by-room testing of this entire building," he said. "Montevallo Elementary School will be one of the cleanest schools in Shelby County. We can guarantee that," he said. Parents should not expect a new school to replace the aging facility, Fuller said in response to a question about plans for a new building. "No, there is not because the growth is not happening," he said. However, without disclosing specifics, Fuller said renovations are on the horizon at the school. "The plans are there and they will be revealed in the coming months," he said. The district is continuing to allow parents to keep their children out of the school. "We have no intention at this point of punishing you and your children for being absent," said Lewis Brooks, the district's assistant superintendent of administration. Absences at the school are no higher than other institutions in Shelby County, Brooks said, noting 195 out at Pelham High School today and 189 at Thompson High School in Alabaster. "There are a lot of kids absent across the district," he said. ASBESTOS UPDATE: Pfizer Asks SC to Bar Bankruptcy-Related Suits --------------------------------------------------------------- Kenneth Bradley, Esq., of The Westlaw Journal writes that Drugmaker Pfizer Inc. is asking the U.S. Supreme Court to review a federal appeals court's ruling that allows certain asbestos- related lawsuits against the company, even though the subsidiary that was the main target of the suits went through bankruptcy reorganization. Pfizer Inc. v. Law Offices of Peter G. Angelos, No. 12-300, response requested (U.S. Nov. 6, 2012). The ruling by the 2nd U.S. Circuit Court of Appeals "frustrates the congressional purposes" of the law written to deal with asbestos-related bankruptcies, Pfizer says in its petition for a writ of certiorari. The Law Offices of Peter G. Angelos has been pushing courts to allow the suits. The Supreme Court requested Nov. 6 that the Angelos firm file a response by Dec. 6. In April the 2nd Circuit said Pfizer can face suits over asbestos- containing products made by its unit Quigley Co. The products included Insulag, an asbestos-containing insulation, which Quigley made from the 1930s until the 1970s. Quigley, which Pfizer bought in 1968, at one time faced suits by more than 160,000 plaintiffs, and it filed for bankruptcy in 2004. Pfizer made no asbestos-containing products of its own. The Angelos firm argued, however, that Pfizer was liable because it put its logo on some advertisements for Quigley products, identifying both companies as manufacturers of the asbestos- containing products. In 2008 the U.S. Bankruptcy Court for the Southern District of New York enjoined the claims. It said Pfizer's alleged liability arose from its ownership of Quigley, and the claims must be channeled toward the trust created out of the bankruptcy. The U.S. District Court for the Southern District of New York reversed the Bankruptcy Court, and the 2nd Circuit affirmed. In its petition for certiorari, Pfizer says the question of whether the suits should be enjoined is crucial to the resolution of asbestos-related bankruptcies. "The issues presented concern the scope of asbestos-channeling injunctions under 11 U.S.C. Sec. 524(g), which directly impacts the funding, disposition and finality of nearly every asbestos- related Chapter 11 case nationwide," the company says. Pfizer says that if the 2nd Circuit's ruling stands, corporate parents will be discouraged from contributing the funds needed to make Section 524(g) trusts effective for compensating asbestos victims. The company says Congress enacted Section 524(g) to encourage companies in Pfizer's position to contribute assets to asbestos bankruptcy trusts "in exchange for a broad channeling injunction." Pfizer says the high court should grant the petition and reverse the 2nd Circuit's judgment. ASBESTOS UPDATE: State Probe Finds Hotel Angelina "Compliant" ------------------------------------------------------------- Rhonda Oaks of The Lufkin News reports the Texas Commission on Environmental Quality recently completed an investigation at the site of the Hotel Angelina renovation project in downtown Lufkin following a complaint stating that debris containing asbestos was being dumped at the Angelina County landfill. The investigation, completed in September, followed a state-required inspection and testing of the asbestos on the first floor of the hotel. The investigation resulted in no out-of-compliance issues for property owner Mark Hicks. Hicks said he takes the issue seriously and is in compliance with the many state requirements regarding the handling of asbestos, a material that is known to cause lung disease and cancer. Details of the September TCEQ investigation and the state-required inspection showed extensive asbestos contamination throughout the building. Renovation on remaining floors of the hotel have not yet begun, but first-floor renovations are ongoing. ASBESTOS UPDATE: Fanfare Lot Appraised at $77K, Sells for $2.75M ---------------------------------------------------------------- Kurtis Lee and David Olinger of The Denver Post report that a Denver businessman could sell his commercial property in its blighted state to Aurora for $2.75 million despite a city appraisal pricing it at $77,000. The Fanfare property, a 10-acre site unused for at least 28 years, once thrived as a discount shopping center in the heart of Aurora. Neighbors and city officials have debated what to do about it for years. They could get an answer by Tuesday, Dec. 11, when Aurora's Urban Renewal Authority, which consists of City Council members and the mayor, is scheduled to finalize a contract to purchase the land. Based on a contract between the Urban Renewal Authority and the owner, Herbert Buchwald, the city can purchase the property "as is" for $2.75 million, or pay $4 million to have the site completely demolished and cleaned of all contaminants. That means to close the deal, the city's urban-renewal arm must pay $2.67 million more than the city's appraiser said it was worth in its current state. Before AURA makes its final decision on the Fanfare property -- which some call Fan Fair or Fan Fare -- the authority will review the results of additional environmental tests, which were completed Nov. 30. "We've appraised the property for $4 million when cleaned of asbestos and the building's demolition," said Mayor Steve Hogan. "Everyone knows the land is never going to reach its potential with that building on it. And now the city is taking the right steps to redevelop the area." Yet some members of the Aurora City Council are calling the deal a "bailout" of Buchwald, a politically influential owner who has held the land vacant since 1984. "If it were really worth that amount and had that potential, you would think a legitimate developer would have seen its potential and invested in it a long time ago," said Councilwoman Molly Markert, who opposes the pending deal. So what's it really worth? In 2010, an Arapahoe County commercial appraiser walked onto the site, gazed at the boarded-up building in the middle and valued the property for the 13th consecutive year at $450,000. That value was set by Buchwald himself, who protested the assessor's valuations until the $450,000 figure was reached. He now pays $11,000 a year in taxes on the Fanfare property near the corner of East Third Avenue and Havana Street. This year, Bonnie Roerig, the appraiser hired by the city of Aurora, concluded the property isn't worth $450,000. She put its value, as is, at $77,000. But if someone paid to make the property "vacant and clean," removing the building and the asbestos it holds, Roerig notes it could be worth $4 million, which is why Aurora took out a loan for up to that amount. So why is the city paying Buchwald more than the $77,000 "as is" figure from its appraisal? That's a mystery. Andrea Amonick, the city's Urban Renewal Authority manager, said the $2.75 million AURA has agreed to pay is based on information provided by the seller and an older estimate prepared for the city that has since been revised by Roerig. Amonick also told The Denver Post she has not reviewed Buchwald's appraisal. And Buchwald's attorney declined to allow The Post the opportunity to review the report. Buchwald declined to discuss his pending deal in Aurora. Michael Sheldon, the attorney representing Buchwald, said he hired an appraiser who felt the land, cleaned and vacant, would be worth more than $4 million. Buchwald and Sheldon wield influence in the metro area. Buchwald is a director of MDC Holdings in Denver, the parent of Richmond American Homes. This year, he also served as president of eight other Denver companies, two in Greenwood Village and three in Florida. Sheldon works from a law office in Greenwood Village and often represents developers seeking Aurora City Council approval of their projects. Aurora Chamber of Commerce spokesman George Peck described Sheldon as a well-known power broker for Aurora developers. "He's a very good person to go to," Peck said. "He knows Aurora very, very well." In normal real-estate deals, the buyer and seller negotiate a market value after viewing each other's appraisals. "This allows them to consummate a property-transfer sale at a market price that's acceptable to both parties," said Larry Stark, president of National Valuation Consultants Inc. In Aurora, Councilman Bob LeGare voted to approve the contract with Buchwald despite his misgivings about the price. LeGare sees renewed commercial development of the blighted site at 333 Havana St. as beneficial to Aurora but said, "I don't believe it is worth $4 million." The money to purchase the property would come from the city's water department. City officials say they would repay the water department at a 2.5 percent interest rate. Buchwald, who owns the land under the name Capitol Financial Ventures, bought it 30 years ago for $4.1 million, when Havana Street was thriving. In the 1960s, the property served discount shoppers who thronged to its location just north of Alameda Avenue. When Buchwald bought it, the shopping center was gone. But its igloo-roofed commercial building still turned a profit as the home of Western Electric offices. Two years later, Western Electric moved out, leaving an asbestos- laden building there to deteriorate. The $11,000 in property taxes Buchwald pays to own a blighted, vacant commercial site in Aurora is a bit more than the taxes paid next door by tiny Woody's Wings 2. Now, Woody's Wings 2 is protesting its soaring property-tax bills. "In two years, our property taxes tripled. Ours is the highest of any on Havana," says Brooke Serecky, the owner's daughter. "Ten grand. It's really bad." Last June, Roerig, the appraiser hired by the city of Aurora, took a fresh look at Buchwald's property. "The building is contaminated with asbestos and other materials," Roerig wrote in her appraisal. "There is also groundwater contamination." She noted that a Havana North Blight Study approved by the Aurora City Council had found 10 of a possible 11 blight conditions in the proposed redevelopment area. Eight were on Buchwald's property. The environmental contamination is extensive. Roerig reported that asbestos and other hazardous materials contaminate the fenced building, a cancer-causing compound called benzene flows beneath the area, and the costs of cleaning up the site will run into millions of dollars. Some neighbors of the Fanfare site favor buying the site and removing the building, no matter what it costs. Barbara Dutton, for one. "It's a health hazard . . . after almost 29 years, it's past time to demolish the building," she said at a recent council meeting. City Councilwoman Marsha Berzins, who represents constituents such as Dutton in the ward around Buchwald's vacant lot, helped push the city to buy it. "Neighbors have been asking for years for us to do something about this building," Berzins said. Berzins was out of town last week and acknowledged she just skimmed over the appraisal that concluded Buchwald's property at a current rate is worth $77,000. "There still hasn't been a decision made," Berzins said. "We still need to decide what that total sum is going to be." ASBESTOS UPDATE: Dale Farm Traveller Site Declared As "No Go Zone" ------------------------------------------------------------------ Jon Austin of The Echo News (UK) reports that the former Dale farm traveller site has been declared a no go zone after dangerous asbestos was found on some of the bulldozed plots. Officials from the Environment Agency are urging no one to venture onto the former illegal site off Oak Lane, Crays Hill, until the outcome of a probe into whether last year's GBP7million eviction operation disturbed pollutants buried underneath from its previous use as a scrapyard. The agency is refusing to release a report into the findings of a team of specialists who carried out a fingertip search of the green belt land in the autumn despite a freedom of information request from the Echo. However, it confirmed asbestos has been found on the site and people have been urged to stay away in the meantime. An agency spokeswoman said: "We advised residents to stay away from the cleared area of Dale Farm as a precaution." When consultants visited the site to take samples they identified bonded asbestos sheeting on some plots. "Asbestos can have health implications if broken up so people were advised to avoid any actions that might break it up or disturb it." It is not yet known if the asbestos was dug up during the eviction or has been dumped by flytippers since. It is understood the agency will not release details of its report as there could be a possible prosecution of the council or traveller owners of the site. ********* 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. Noemi Irene A. Adala, Joy A. Agravante, Ivy B. Magdadaro, Psyche A. Castillon, Julie Anne L. Toledo, Christopher Patalinghug, Frauline Abangan and Peter A. Chapman, Editors. Copyright 2012. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter Chapman at 240/629-3300. * * * End of Transmission * * *