/raid1/www/Hosts/bankrupt/CAR_Public/990521.MBX
             C L A S S   A C T I O N   R E P O R T E R 
                Friday, May 21, 1999, Vol. 1, No. 76 
                            Headlines 
3COM CORP.: Barrack Rodos Files Complaint in California
BANK OF AUSTRIA: Settlement Approved for Holocaust Survivors
BLUE CROSS: Policyholders Seek Cerulean Shares Despite Setback
BRE-X MINERALS: Separate Suit Planned After Brokers Dismissed
CENDANT CORP.: Judge Fines Lawyer for Disclosing Legal Fees
FORD MOTOR: Alameda County TFI Jury Hears Opening Statements
FORD MOTOR: Disputes Ambulance Operators' Claim of Class Status
IRIDIUM WORLD: Keller Rohrback Files District of Columbia Suit
LOUISIANA: Challengers Seek New Trial for State Gill-Net Ban
MARCOS ESTATE: Victims Say Terminate Settlement for Non-Payment
MAXIM GROUP: Wolf Haldenstein Files Complaint in District Court
NEW YORK CITY: Judge Okays Seizing Cars from Drunk Drivers
PACIFIC BELL: Part-time Workers Seek Benefits (ala Microsoft)
RACIAL PROFILING: Serviceman Stopped in OK "Driving While Black"
RACIAL PROFILING: Suit Challenges NJ State Police Turnpike Stops
ROTHMANS HOLDINGS: Smokers Take on Australian Tobacco Industry
SECURITIES LITIGATION: Insurer Recommends Defensive Measures
SUPERMARKETS GENERAL: Settles Royal Ahold Acquisition Complaint
WWII REPARATIONS: More Suits Planned Against German Companies
                            ********* 
3COM CORP.: Barrack Rodos Files Complaint in California
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Barrack, Rodos & Bacine filed a class action in the United 
States District Court for the Northern District of California on 
behalf of all persons who purchased the common stock of 3Com 
Corp. (Nasdaq: COMS) between September 22, 1998 and March 2, 
1999, inclusive. The complaint charges 3Com and certain of its 
officers and directors with violations of the Securities 
Exchange Act of 1934. 
The complaint alleges that beginning in September 1998, 
defendants made false and misleading statements about 3Com's 
exceptionally strong and much better-than-expected 1stQ F99 EPS 
of $.24, strong ongoing demand for 3Com's Systems Products 
(especially its new flagship CoreBuilder 9000 switch) and 3Com's 
Client Access Products, 3Com's increased operational 
efficiencies, improved channel inventory controls and costs 
savings and the progress 3Com was making with its new, improved 
business model. The complaint further alleges that during 3Com's 
1stQ F99 and 2ndQ F99, 3Com's insiders also used $130.4 million 
of 3Com's cash to repurchase 4.3 million 3Com shares on the open 
market, to help manipulate and artificially inflate the stock to 
help the insiders sell their own shares at much higher and, for 
them, more profitable prices. 
As a result of these positive representations, 3Com's stock 
soared from as low as $23-1/8 on September 1, 1998 to as high as 
$51-1/8 on December 23, 1998, its 1998 high, and during November 
1998- January 1999, 3Com's top insiders sold 4.2 million shares 
of their 3Com stock at as high as $48.69 per share for $189 
million. In early February 1999, 3Com's stock fell sharply, from 
$47-1/4 to $30-9/16 in seven trading sessions when rumors 
circulated that Intel Corp. was gaining NIC market share from 
3Com and two 3Com distributors announced disappointing results. 
However, when 3Com assured analysts that its business model was 
intact and it was on track to achieve 3rdQ F99 and 4thQ F99 EPS 
consistent with its prior guidance, 3Com's stock stabilized and 
recovered to as high as $35-9/16. However, on March 2, 1999, 
3Com revealed that, due to weak sales of Systems Products, 
especially in North and South America and very weak sales of 
Client Access Products, 3Com's 3rdQ F99 EPS, and its results 
going forward, would be much worse than earlier forecast, 
causing analysts to slash the 3Com forecast for the 4thQ F99, 
F99 and F00 EPS to just $.22-$.29, $1.04-$1.11 and $1.15-$1.55, 
respectively, far below the levels forecast earlier. 3Com's 
stock dropped from $30- 11/16 on March 1, 1999 to as low as $22-
3/4 on March 3, 1999, a 27% two-day decline on extraordinary 
volume of over 92 million shares.
For more information, contact Maxine S. Goldman at 800-417-7305 
or 215-963-0600, or write msgoldman@barrack.com via email.
BANK OF AUSTRIA: Settlement Approved for Holocaust Survivors
------------------------------------------------------------
The New York Times reports that shareholders of The Bank of 
Austria have voted to approve a settlement of class action 
lawsuits filed in the U.S. by survivors of the Holocaust and 
their families. The settlement, which calls for the bank and its 
Creditanstalt subsidiary to provide $30 million to set up a fund 
for the claimants, will be presented to Federal District Court 
in Manhattan for approval.
According to The Washington Post, an additional $10 million 
expense has been planned for administration, payment of lawyers' 
fees and advertising to bring the agreement to the attention of 
potential claimants. 
The Post noted that the amount involved is considerably less 
than the $ 1.2 billion settlement agreed to last year by 
Switzerland's two biggest banks to close out a five-decade 
controversy over charges that the banks took deposits from Jews 
who subsequently were swept into Nazi death camps and, after 
World War II, refused to honor claims from survivors or 
relatives of victims. However, the Bank Austria settlement is 
significant as a sign that the drive to resolve claims left over 
from the war still has momentum. In addition to banks, claims or 
settlement negotiations are proceeding against several European 
insurance companies for alleged nonpayment of death benefits and 
against a number of industrial firms--including German 
subsidiaries of some American companies--that allegedly profited 
from the use of slave labor provided by the Nazis.
The bank spokesmen told the Washington Post that anyone now 
party to the class action suit will be able to formally opt out 
and pursue legal action separately if dissatisfied with the 
settlement. The spokesmen added that the banks do not know how 
many claimants there are likely to be or how much their claims 
collectively will total.
BLUE CROSS: Policyholders Seek Cerulean Shares Despite Setback
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Despite a Georgia Supreme Court setback, attorneys representing 
about 74,000 Blue Cross and Blue Shield of Georgia policyholders 
have mounted another bid to gain shares of stock in the 
insurer's parent company. Those 74,000 plaintiffs, in a class-
action lawsuit, have asked state Insurance Commissioner John 
Oxendine to declare that they should be issued five shares of 
stock each in Cerulean, parent firm of Blue Cross. Oxendine's 
office said the commissioner had not yet reviewed the 
plaintiffs' petitions.
Already, about 70,000 Blue Cross policyholders own five shares 
apiece. They took advantage of a 1996 offer to sign up for the 
free disbursement during the insurer's conversion from a 
nonprofit to a for-profit company. If the $500 million 
acquisition of Blue Cross by California-based WellPoint Health 
Networks occurs, as expected, those policyholders would receive 
about $ 4,000, or the equivalent in WellPoint stock.
In December, a Superior Court judge in Richmond County ruled 
that 74,000 more policyholders were allowed to receive the five 
shares -- even though they didn't sign up for the offer. Under 
that ruling, the value of the benefit to all shareholders would 
have dropped to about $ 1,850.
But Blue Cross appealed, and this month, the Georgia Supreme 
Court reversed the lower court decision. Oxendine still has the 
power to review the stock situation, Jay Brownstein of 
Brownstein & Nguyen, representing the plaintiffs, said Tuesday.
The company has argued the plaintiffs should have either 
accepted the stock in 1996 or appealed that share process at 
that time.
Oxendine also must approve the WellPoint acquisition, but no 
hearing has been scheduled. Blue Cross shareholders must approve 
the deal as well.
(Copyright 1999 The Atlanta Constitution)
BRE-X MINERALS: Separate Suit Planned After Brokers Dismissed
-------------------------------------------------------------
The National Post reports that the biggest victim of the Bre-X 
Minerals Ltd. swindle - the $60-billion Ontario Teachers' 
Pension Plan Board - may sue Bay Street brokers directly in 
coming weeks after last week's disastrous decision to exempt the 
brokers from a class-action lawsuit. Lawyers for the board, 
which lost $100-million, and others are busily deciding what to 
do in the wake of last week's court decision that said a class 
action on behalf of shareholder victims would be restricted to 
going after a handful of Bre-X officers and directors. 
It was a bad decision. The brokers, and their big-bank owners, 
were midwives to the world's biggest gold swindle by selling the 
junk and endorsing it. 'In general, it looks like everybody's 
washing his hands,' said Claude Lamoureux, board president and 
chief executive, in a telephone interview this week. 'We're 
going to see what can we do here.'
The Ontario court's class-action decision may be appealed and it 
does not preclude the board or other investors from suing 
individually, or even jointly. It also does not preclude success 
on the part of a class-action lawsuit that is proceeding against 
Canadian and U.S. brokers in the United States.
The board lost $100-million. The public lost $8-billion (Bre-X 
plus related companies). Bay Street brokers and their bank 
owners, by contrast, made tens of millions of dollars touting 
Bre-X over the years. Bay Street's brokerage firms, and some 
regionals, run all of Canada's exchanges where there is an 
implied guarantee any listed stock is for real. Now, they argue 
they were hoodwinked, too. 
'You start with the guy that is dead. He certainly knew this was 
a fake,' said Mr. Lamoureux. 'The geologists knew it was a fake. 
Somebody was salting a mine. Start with that. A giant fraud. 
After that, you say, did the analysts do their jobs? First 
somebody does a fraud then an analyst goes and says it's great 
and fabulous. It's either there or not there. Clearly, it wasn't 
there. We're talking about quality control. What did the 
analysts have in terms of quality control? Did the auditor? 
Probably not. The head office did not.'
Let's just recount here the infamous conference call, weeks 
before the fraud was discovered, among analysts and the late 
Bre-X director and chief executive David Walsh and senior vice-
president John Felderhof, now living in the Cayman Islands. Mr. 
Walsh died last year, but Mr. Felderhof is charged with insider 
trading and securities violations by the Ontario Securities 
Commission. 'My estimate [of gold reserves] is 95 million 
ounces,' bragged Mr. Felderhof in February, 1997. 'Mike de 
Guzman, my project manager, he estimates 100 million ounces. If 
you would ask me what is the total potential, I would feel very 
comfortable with 200 million ounces.'
None of the analysts challenged these figures, even though 
subsequent drilling showed there was very little gold on the 
property. Egizio Bianchini, an analyst with Bank of Montreal's 
Nesbitt Burns Inc., was chief cheerleader for the stock, touting 
it up until the day before the company first announced there 
were problems. In the conference call, Mr. Felderhof was 
commenting about Mr. Bianchini's concern about the fact that the 
Indonesian government had just expropriated 55% of the ore body 
without compensation. 'Egizio, can I just add one point? I think 
what happened here, we found too much gold, so it therefore 
becomes an issue of national [Indonesian government] interest. 
If we had found a lot less, this [expropriation] would have 
never happened.' Mr. Bianchini then commented on how investors 
were disappointed at this expropriation. 'Yes, I'm a bit 
disappointed, but you've also got to appreciate this is a very 
unique situation. Even with 45%, I feel that Bre-X could end up 
with 90 million ounces. That's my feeling. And that's a pretty 
good mine.' Mr. Bianchini: 'From your lips to God's ears, John. 
Thank you.'
Another area of legal interest concerns the announcement in 
December, 1996, by the Toronto Stock Exchange that Bre-X would 
ascend to the prestigious TSE 300, an index of blue-ribbon 
stocks. That's when the big boys, including Caisse de depot et 
placement du Quebec, waded in. Normally, companies had to be 
listed for one year before getting on to the
index, even if they qualified otherwise. The index is weighted 
according to industry and capitalization to reflect, more or 
less, the entire stock exchange. Bre-X was promoted after only 
nine months because it was worth $6-billion and also because it 
was in the mining category, which needed bolstering. This meant 
the exchange, run by the brokers, did not quite follow its own 
rules. But it also must have meant they may have had some sort 
of latitude, or someone argued that Bre-X was a special case 
that required an exemption. The significance here is that 
companies automatically jump in value when they get on the TSE 
300. 
(Copyright 1999 Financial Post from National Post)
CENDANT CORP.: Judge Fines Lawyer for Disclosing Legal Fees
-----------------------------------------------------------
The Associated Press reports that a federal judge has fined a 
lawyer $1,000 for improperly disclosing confidential aspects of 
bidding by law firms that sought to lead one of two class-action 
lawsuits against Cendant Corp. U.S. District Judge William H. 
Walls had threatened to issue a contempt citation against lawyer 
Howard Sirota, who represents some Prides shareholders, after 
reading a New York Times report in which Sirota questioned the 
payout to the lead firm, Kirby McInerney & Squire of New York. 
Instead, Walls chose a lesser punishment, which Sirota said he 
would appeal. 
The Associated Press noted that Sirota's firm, Sirota & Sirota 
of New York, failed in its effort to become lead counsel, a 
potentially lucrative post in class-action lawsuits. It is now 
seeking a share of Kirby's fees, arguing that by pushing for the 
competitive bidding, its efforts benefited shareholders.
At a recent hearing, Sirota was reported by AP to assert that he 
divulged no confidential information when he called a reporter 
for the Times and informed her of a court filing complaining 
that Kirby's request for fees exceeded its bid. An article 
appeared Friday, which Sirota said was based on his legal brief. 
The article said Kirby is seeking 2,916,147 Cendant rights as 
its fee. Sirota argued that would be worth $34 million, or about 
10 percent of the settlement, which Sirota said exceeds its bid, 
the article said. "The class is entitled to know that Kirby is 
seeking more than his bid," Sirota told Walls. Walls said Sirota 
could have checked with the court first before divulging bid 
information.
The action by U.S. District Judge William H. Walls came a day 
after he formally approved a $340 million settlement reached in 
January in that lawsuit, which was brought by holders of a 
special class of Cendant securities known as Prides. AP 
explained that holders of Prides had the obligation of buying 
Cendant common stock at a future date. And when Cendant stock 
plummeted in April 1998, following the disclosure of a 
widespread accounting fraud, it would have left the Prides' 
holders obligated to pay more than twice the market value for 
common stock.
AP explained that the settlement would compensate Prides 
shareholders and Kirby with a new security, called Cendant 
Rights. Cendant took an after-tax charge of $220 million, or 26 
cents a share, in the fourth quarter of 1998 to pay for the 
settlement. Cendant was formed in December 1997 from the merger 
of Parsippany-based franchiser HFS Inc. and Stamford, Conn.-
based CUC International Inc., which runs shopping and other 
membership clubs. In April 1998, Cendant announced it had found 
major accounting fraud at the former CUC unit, and restated its 
earnings for the past three years. The fraud, which added about 
$500 million in bogus revenues, led to the dismissals and 
resignations of several CUC officials. According to the 
Associated Press story, Cendant had been based in Parsippany, 
but moved its base to New York in January.
FORD MOTOR: Alameda County TFI Jury Hears Opening Statements
------------------------------------------------------------
Ford Motor Co. concealed a defective ignition part that could 
cause stalling in millions of vehicles, an attorney suing the 
company told an Oakland jury yesterday in a landmark trial 
against the U.S. automaker. According to the San Francisco 
Chronicle, in opening statements in Alameda County Superior 
Court, attorney Paul Nelson said the auto manufacturer withheld 
information on a flawed ignition module mounted on the 
distributors of 22 million cars and trucks from 1983 to 1995. 
"This is the first time that a product manufacturer has ever 
been taken to trial to hold them fully responsible for a known 
defect," Nelson said. "When there is a defect, the manufacturer 
should fix it."
The SF Chronicle says the class-action suit, filed on behalf of 
3 million past or present owners of Ford, Lincoln and Mercury 
vehicles in California, is the largest ever to go to trial 
against a U.S. automaker. It seeks $3 billion in damages, or 
$1,000 for each consumer-protection violation under state law.
Ford officials have denied a coverup, saying that their vehicles 
are safe and that no plaintiffs in the suit have been injured or 
killed. "People in this class have not suffered damage of any 
kind," said Ford attorney Warren Platt.
The Chronicle reports that the case has drawn national attention 
not only because of its scale, but also because Ford is accused 
of violating state consumer laws -- not product liability 
statutes -- by allegedly misleading the public, federal highway 
safety officials and environmental regulators. Five identical 
suits across the country are on hold, pending a verdict from the 
seven-man, five-woman Oakland panel after a trial that could 
take several months. If Ford loses the case, Judge Michael 
Ballachey said he would consider ordering a vehicle recall, 
another first. At issue is Ford's Thick Film Ignition (TFI) 
module, a device mounted on the engine distributor that 
regulates the electrical current that causes ignitions to spark.
Platt defended Ford vehicles in his opening statements, saying 
the TFI module was tested by engineers to ensure that it worked 
properly. Federal investigations showed that vehicles with the 
device were just as safe as those with other ignition systems, 
he said. "Our cars are safe," Platt said in the Chronicle story. 
"There is no greater likelihood that one of these cars will 
stall or have an accident."
During pretrial proceedings two weeks ago, the plaintiffs 
dropped a fraud charge and asked Ballachey to hear the case 
without a jury. The SF Chronicle reports that the judge rejected 
the request, and Ford officials repeated assertions that the 
suit should be dismissed. The civil trial pits Dearborn, Mich.-
based Ford, the nation's second-largest automaker, against 
attorneys backed by Clarence Ditlow, executive director of the 
Center for Auto Safety, the Washington, D.C.-based organization 
founded by consumer advocate Ralph Nader. Ditlow said he 
normally does not get involved in private litigation. But he 
made an exception because Ford's conduct in this case "has been 
so egregious." "Ford knowingly subjected its customers -- and 
those who happen to be in or around a vehicle with a 
distributor-mounted TFI module -- to a 'major risk' of injury or 
death," Ditlow wrote in a court declaration in which he 
described the module as a "potential time bomb."
In court, Nelson said the module often fails at 257 degrees 
Fahrenheit, resulting in stalled engines. Ford decided to save 
$4 per vehicle by mounting the device on the distributor, which 
heats up quickly, instead of on a cooler place on the engine, he 
said. After receiving consumer complaints, Ford told federal 
highway safety officials that it was unaware of a common cause 
of the stalling, while hiding documents showing otherwise, 
Nelson said. TFI modules have been replaced in 15 million cars, 
and the devices have not been used since 1995, according to 
Ford. The company said the 22 million Ford vehicles with TFI 
modules have been driven a collective 2 trillion miles.
(San Francisco Chronicle; 05/19/99) 
FORD MOTOR: Disputes Ambulance Operators' Claim of Class Status
---------------------------------------------------------------
Three Massachusetts ambulance operators that sued Ford Motor Co. 
for allegedly building defective ambulances are asking a federal 
judge to make the case a class action. According to an 
Associated Press story, three family-owned companies claim that 
Ford-built ambulances had defective drive belts and 
transmissions that caused breakdowns and left patients stranded. 
It does not allege that any patients were injured as a result.
The companies Professional Ambulance and Oxygen Service in 
Cambridge, Action Ambulance Service in Stoneham and Fallon 
Service in Milton are seeking hundreds of thousands of dollars 
from Ford for alleged breach of warranty and unfair and 
deceptive practices. According to AP, they also asked a federal 
judge to grant class-action status to anyone who bought certain 
1992, 1993, or 1994 Ford Econoline or F-Series vans. Their 
attorney Joanne D'Alcomo said at least a dozen and possibly more 
than 100 operators statewide would meet the criteria to join the 
case.
AP reports that U.S. District Judge George A. O'Toole Jr. has 
taken the matter under advisement.
In a brief filed in the case, Ford said, "The record in this 
case reflects the story of a meandering but persistent effort to 
bring a class action, even though none of the requisite 
ingredients for such a lawsuit are present." AP also notes that 
in a written statement, Ford denied the suit's allegations, 
calling the case "an effort to throw before the court a 
hodgepodge of unrelated claims in an effort to obtain millions 
of dollars."
According to court papers, private companies and towns such as 
Nantucket, Boston, Worcester and Sudbury have reported trouble 
with certain 1992, 1993 and 1994 Ford vans. Ford's attorneys 
have said the company acknowledged a problem with some accessory 
drive belts in 1996 and offered to fix the vehicles at the time. 
But they blamed the chronic transmission problems experienced by 
the plaintiffs on improper maintenance by ambulance companies. 
The Associated Press story noted that the complaints come more 
than a decade after Ford, the nation's largest manufacturer of 
vehicles built for use as ambulances, recalled 22,000 ambulances 
to correct problems that caused at least two dozen fires and 
five injuries.
IRIDIUM WORLD: Keller Rohrback Files District of Columbia Suit
--------------------------------------------------------------
Keller Rohrback L.L.P. filed a class action lawsuit in the 
United States District Court for the District of Columbia on 
behalf of investors who purchased Iridium World Communications, 
Inc. (Nasdaq:IRID) stock between September 9, 1998 and March 29, 
1999. The suits charge Iridium, certain officers and directors 
of Iridium, and Motorola, Inc. ("Motorola") with violations of 
the federal securities laws and regulations of the United 
States. 
The Complaints allege that defendants issued false and 
misleading statements and failed to disclose material facts 
concerning the Company's ability to fully launch the Iridium 
System. Specifically, defendants falsely reported achievable 
subscriber numbers and revenue figures, failed to disclose the 
serious technical problems with the Iridium System, failed to 
disclose delays in handset production which resulted in a 
shortage of the necessary handsets which were required to 
operate the Iridium System, and that, absent achieving the 
requisite subscriber numbers and revenue figures, the Company 
would violate covenants between itself and its lenders. 
The Company's fraudulent practices were disclosed on March 29, 
1999 when, for the first time, the Company disclosed that it 
would not meet its necessary subscriber numbers and that as a 
direct consequence would not be able to satisfy its Secured 
Credit Facility covenants. Accordingly, the Company's common 
stock dropped approximately 73% since its May 1998 high.
To learn more, call Lynn L. Sarko, Juli Farris or Alex Perkins 
at 800-776-6044 or write aperkins@kellerrohrback.com via email.
LOUISIANA: Challengers Seek New Trial for State Gill-Net Ban
------------------------------------------------------------
The Advocate Baton Rouge (LA) reports that attorneys for 
commercial fishermen are seeking a new trial of their federal 
court suit against Louisiana's gill-net ban law, saying U.S. 
District Judge G. Thomas Porteous Jr. clearly erred when he 
threw out the suit last month. Porteous based his April 20 
ruling on the fact that a nearly identical state court suit 
filed in 1995 by commercial fishing interests against the gill-
net law was thrown out by Louisiana's state courts. The judge 
said he would not hear the same claims in his court and act as 
"an appellate court" for state court suits.
The lawyers for the commercial fishermen are calling their 
request a motion for a new trial, even though there never was an 
initial trial because the judge threw the case out before it got 
to that stage. But lawyers for the commercial fishermen argue 
that state District Judge Janice Clark of Baton Rouge never 
notified potential members of the state court class action suit 
to either get in or "opt out" of the class action. The lawyers, 
Paul Baier of Baton Rouge and Robert Barnett of New Orleans, say 
some of the plaintiffs in the federal court suit filed in 1996 
were not plaintiffs in the state court suit, and that the state 
court decisions should not stop them from seeking relief in 
federal court.
In documents filed last week at federal court asking Porteous 
for a new trial, Baier and Barnett argue that the federal court 
suit plaintiffs who were not plaintiffs in the state court suit 
are "constitutionally entitled to their own day in court." "The 
state court judgment has no legal effect on the assertion of 
their rights in their separate federal action," the lawyers 
claim. "In short, by filing their own suit in federal court, the 
non-state party plaintiffs ... properly opted out under 
applicable Louisiana class action law. We respectfully submit 
that they cannot be bound by the adverse state court appellate 
judgment. They were not parties to the state suit." The gill-net 
ban law, passed in mid-1995, has been in effect since March 
1997. Commercial fishermen claim the law is preventing them from 
making a living in violation of the U.S. Constitution's Commerce 
Clause. In fighting for the law's passage, the Gulf Coast 
Conservation Association - now called the Coastal Conservation 
Association of Louisiana - argued that gill nets 
indiscriminately catch and kill many untargeted species of fish. 
Commercial fishermen dispute the sport fishermen's argument, 
saying there is no biological evidence to show gill nets 
endanger the state's fisheries.
The federal court gill-net suit had been on hold since mid-1996, 
when Porteous said he wanted the commercial fishermen's state 
court suit to run its course before he entertained their federal 
suit. The Louisiana Supreme Court, in a pair of rulings handed 
down last May and in January, upheld the gill-net ban law in its 
entirety. Attorneys for the commercial fishermen then asked 
Porteous to lift the stay of the federal court suit and hear 
their case. Last month, the judge lifted the stay and then 
dismissed the suit.
Since going into effect, the use of gill nets by commercial 
fishermen in the state's coastal waters has been prohibited for 
all species of fish. Strike-netting, however, is allowed - 
during limited seasons - but only for mullet and pompano. No 
commercial netting can take place on weekends or at night. 
Commercial fishermen need a commercial license to use rods and 
reels to catch speckled trout, white trout, black drum and 
sheepshead - species now off-limits to commercial netting.
The 1995 law changed the way gill nets are used, making 
commercial saltwater finfishing a strike-net-only fishery. The 
gear used in gill-netting and strike-netting is the same, but 
the fishing procedure is different, and the strike nets can be 
no longer than 1,200 feet. Strike-netting, as opposed to gill-
netting and as defined by the law, also demands that the 
fisherman identify the species to be targeted, deploy the net on 
that target, and attend the net. In gill-netting, the net could 
be longer than 1,200 feet, the target did not have to be 
specific, and the net did not have to be attended as closely.
The nets, which come in various sizes, are deployed underwater 
to catch large numbers of fish. The nets trap fish by their 
gills. The fish are unable to swim backward or forward once 
trapped in the nets.
(Copyright 1999 by Capital City Press)
MARCOS ESTATE: Victims Say Terminate Settlement for Non-Payment
---------------------------------------------------------------
Victims who suffered under the regime of deposed dictator 
Ferdinand Marcos have asked a US court to annul a 150 million 
dollar settlement with his estate, a report said Wednesday. The 
group's lawyer filed a petition to terminate the agreement last 
week "since payment has not been made" two weeks after US 
District Court judge Manuel Real endorsed the deal, the 
Philippine Inquirer said. The paper said the judge had set a May 
10 deadline for the payment of the money, to be paid out of 590 
million dollars of Marcos money originally stashed in Swiss 
banks but subsequently transferred to an escrow account here.
The Philippine government had endorsed the deal, subject to a 
review by a Filipino court which is handling government lawsuits 
to recover the alleged embezzled fortune of the Marcos couple. 
However, the Filipino court said last week that it could not 
release the money because it still had to establish whether the 
funds in escrow were stolen from national coffers. 
"Since payment has not been made, lead counsel wishes to 
exercise the right to terminate for non-payment and requests the 
consent of the court," the Inquirer quoted Swift as saying in 
his court filing.
The reported move was slammed by Philippine President Joseph 
Estrada. "We fought so hard for that money to be given to the 
human rights victims. I don't know what is in their mind," a 
presidential palace statement quoted him as telling reporters in 
Hong Kong, where he is on a four-day visit. "I went out of my 
way to get the 150 million dollars so the human rights victims 
can be given what is due them." Estrada insisted the problem was 
due to the wrangling by the victims' leaders, in which one 
faction refused to accept the money without an apology from the 
Marcos heirs.
Judge Real in 1994 awarded 2.0 billion dollars in damages to 
9,539 claimants who had filed a class action over human rights 
abuses during Marcos' iron rule. Meanwhile in Manila, the 
Philippine Supreme Court on Wednesday upheld a 1998 ruling which 
struck down a secret 1993 agreement between the government and 
the Marcos heirs. The invalidated deal had provided for a 75-25 
shareout of disputed Marcos assets in exchange for the dropping 
of the civil suits against the estate. The Marcos heirs had 
petitioned to have the 1998 ruling reversed.
Marcos died in exile in Hawaii in 1989, three years after his 
20-year rule was ended by a bloodless popular revolt.
(Copyright 1999 Agence France Presse)
MAXIM GROUP: Wolf Haldenstein Files Complaint in District Court
---------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP filed a class action 
lawsuit in the United States District Court for the Northern 
District of Atlanta on behalf of investors who bought Maxim 
Group Inc. (NYSE: MXG) securities between September 1, 1998 and 
May 19, 1999. The lawsuit charges Maxim and several of its top 
officers with violations of the securities laws and regulations 
of the United States. 
The complaint alleges that defendants issued a series of false 
and misleading statements concerning the Company's revenues 
during the 2nd, 3rd and 4th quarters of its 1999 fiscal year. 
The Company announced on May 19, 1999 that due to the incorrect 
statement of its revenues in the last three quarters of 1999 it 
would have to restate those results downwards. Upon the 
announcement of the restatement of its financial results the 
Company's stock price dropped approximately 15% on 
extraordinarily heavy trading volume. The complaint further 
alleges that certain Company insiders took advantage of their 
knowledge of the inflation in the Company's stock price to sell 
significant portions of their own company holdings for proceeds 
of at least $25,000,000.
For additional information, call Michael Miske, Gregory Nespole, 
Esq., Fred Taylor Isquith, Esq. or Shane T. Rowley, Esq. at 800-
575-0735 or write to classmember@whafh.com or whafh@aol.com via 
email.
NEW YORK CITY: Judge Okays Seizing Cars from Drunk Drivers
----------------------------------------------------------
The New York Times reports that a state judge yesterday upheld 
the Giuliani administration's policy of seizing the cars from 
people arrested on drunken driving charges, handing the city its 
first court victory on a crackdown that has been criticized by 
civil libertarians. The ruling by Justice Michael D. Stallman of 
State Supreme Court in Manhattan came in response to a class-
action lawsuit brought by the New York Civil Liberties Union on 
behalf of Pavel Grinberg, a Staten Island man whose car was 
confiscated by the police on Feb. 21, the day the policy against 
driving while intoxicated went into effect.
In deciding in the city's favor, Justice Stallman said Mr. 
Grinberg "has not met his burden of demonstrating that the city 
D.W.I. forfeiture policy is unconstitutional, contrary to law or 
arbitrary and capricious, either on its face or as applied to 
him."
Mayor Rudolph W. Giuliani and other city officials applauded the 
ruling yesterday, saying that the judge had proved wrong all the 
critics who publicly criticized the policy as ill advised and 
illegal. "I'd like to remind everyone that the New York Civil 
Liberties Union and other advocates and activists do not 
determine the Constitution," the Mayor said. Noting that the 
initiative was being copied elsewhere, such as in Long Island, 
he added, "We're going to save hundreds and maybe ultimately, 
thousands of lives." 
But vowing that "the challenges will continue," Norman Siegel, 
executive director of the New York Civil Liberties Union, said 
yesterday that his organization planned to appeal the case to 
the New York State Court of Appeals. If he loses there, he said, 
he may take the case as high as the United States Supreme Court. 
"We continue to maintain that the government should not be in 
the business of seizing people's cars without their requisite 
legal authority and even if authorized, it should not do so 
prior to trial and conviction," he said. "Moreover, we continue 
to believe the Giuliani administration's D.W.I. initiative is 
unfair and excessive."
Legal experts said the judge's ruling was not surprising, noting 
that forfeiture was a long-used response -- dating back to the 
Middle Ages -- in cases where property is instrumental in the 
commission of a crime. Since 1984, Federal law has allowed for 
the seizure and auction of property suspected of being used in a 
crime, whether or not a suspect is arrested. A New York State 
law allows the forfeiture of vehicles owned by drivers who 
repeatedly drive while intoxicated.
The three-month-old forfeiture policy relies on a provision of 
the city administrative code that allows for the seizure of 
burglary tools, gambling equipment, firearms and other 
instruments used in committing a crime. Although the code does 
not mention drunken driving, Judge Stallman ruled that the 
city's initiative "implements current law and codified 
procedure." 
Calling the use of forfeiture "an old and well-established 
response," H. Richard Uviller, a professor of Law at Columbia 
University, told the New York Times that "if a person uses his 
car in the commission of a crime, whether it's a getaway car 
used for robbing a bank or a car used for drunk driving, it may 
be seized as the instrumentality of the crime." Stephen Gillers, 
a professor of law at New York University, generally agreed, 
saying that the forfeiture "is a legally defensible strategy 
even when you don't convict the driver." "It is harder to 
convict the driver but easier to take away the car," he said. 
"The Supreme Court has upheld forfeiture of vehicles when used 
in the commission of a crime. The question is whether the idea 
goes beyond what the Supreme Court has allowed."
City officials said yesterday that the seizure policy had been 
having its intended effect: deterring people from driving drunk. 
According to Police Department figures, there were 336 drunken 
driving accidents resulting in 5 deaths over the three months 
since the program was carried out on Feb. 21, compared with 427 
accidents and 7 deaths during the same period in 1998, the 
police said. Since Feb. 21, the police have seized 405 cars. The 
police said that since the program began, they arrested 1,100 
people for being either intoxicated or impaired while driving , 
compared with 1,319 such arrests during the same period in 1997.
Forfeiture applies only to suspects who can be shown to be 
intoxicated, meaning the driver's blood alcohol level is 0.10 
percent or higher. "The offensive or effort against drunk 
driving, to try to reduce it, has been very successful," Mayor 
Giuliani said yesterday. "The percentage of arrests is down 16 
percent. And even though we are arresting less people, accidents 
are down about 22 percent, fatalities about 28 percent." 
"Ultimately," he added, "it's a big victory for a much safer New 
York City, a place in which people will readjust their behavior 
and think about the fact that before they get behind the wheel 
of a car, don't have a drink."
(Copyright 1999 The New York Times Company)
PACIFIC BELL: Part-time Workers Seek Benefits (ala Microsoft)
-------------------------------------------------------------
The Los Angeles Times reports that SBC Communications Inc.'s 
Pacific Bell subsidiary is being sued by a group of independent 
contractors and part-time workers seeking pension, welfare, 
overtime, vacation and other employee benefits.
The group, representing more than 1,700 contractors and part-
time workers for Pacific Bell, filed a class-action suit in 
federal court in San Francisco on Tuesday. The suit comes a week 
after a federal appellate court ruled that Microsoft Corp. may 
be forced to let thousands of contractors and part-time workers 
participate in its employee stock purchase plan. 
Pacific Bell spokesman Doug Michelman said the San Francisco-
based company hadn't seen the suit and was unable to comment on 
it.
(Copyright 1999 Times Mirror Company)
RACIAL PROFILING: Serviceman Stopped in OK "Driving While Black"
----------------------------------------------------------------
USA Today reports that in the first lawsuit generated by a 
national campaign to identify victims of racially motivated 
abuse by police, the American Civil Liberties Union filed suit 
in an Oklahoma federal court Tuesday on behalf of a black 
motorist and his 12-year-old son. Citing an abundance of 
anecdotal evidence indicating the prevalence of race-based 
police practices, the ACLU launched a multimedia campaign this 
year in an effort to identify victims of such abuse and document 
their cases to support possible lawsuits and new legislation.
At the same time, Congress and law enforcement agencies have 
been wrangling over ways to document the police practice of 
stopping minorities for nothing more than something widely 
referred to as "DWB" -- driving while black.
The Oklahoma case centers on Army Sgt. First Class Rossano 
Gerald and his son, Gregory. It wound its way to the ACLU's New 
York headquarters in February after the sergeant, who earned a 
Bronze Star during the Persian Gulf War, responded to an ad 
published in Emerge magazine.
The lawsuit, which names Oklahoma Gov. Frank Keating and the 
state Department of Public Safety among others, alleges that 
state troopers were racially motivated when they improperly 
detained father and son for more than two hours on the highway 
while officers tore apart the man's car in a futile search for 
drugs. At one point during the stop last August, Gerald says, 
white troopers frisked his crying son and then questioned the 
youngster in a police car within inches of a snarling search 
dog.
Oklahoma authorities declined to comment.
The case is the latest in a string of similar suits brought 
against law enforcement agencies in Maryland, Indiana, 
Pennsylvania, Illinois, Florida, New Jersey and Colorado.
Gerald, 37, says he answered the ACLU ad after state officials 
denied a complaint he filed against the troopers. The incident, 
as outlined in the lawsuit, marked the second time Gerald and 
his son had been stopped on the highway within a half-hour of 
crossing the Oklahoma state line from Arkansas on Interstate
40. The first time, a trooper in an unmarked car gave him a 
warning for tailgating, Gerald says. Within minutes of that 
stop, the lawsuit asserts, another trooper in a marked car 
pulled Gerald's red Nissan 300ZX to the highway shoulder. Gerald 
says he disputed the trooper's claim that he failed to signal a 
lane change. According to the lawsuit, the situation gradually 
grew tenser, and three more troopers eventually reached the 
scene. While one of the troopers insisted on searching the car,
Gerald says the officer repeatedly ignored requests that he be
allowed to contact his commanding officer. During the search, 
Gerald and his son were allegedly placed in a patrol car with 
the air conditioning turned off and windows rolled up in 90-
degree heat. When they complained, according to the lawsuit, 
they were ignored. Believing they had found a secret compartment 
in the car, troopers allegedly handcuffed Gerald, then took his 
son to a separate vehicle for questioning.
"The dog was in the back of the vehicle, while Gregory was in 
the front passenger seat," the suit says. "Gregory became 
frightened that the dog would bite him, because the dog kept 
barking at him. Throughout the interrogation, Gregory was 
frightened and crying." Over the course of the incident, the 
lawsuit alleges, the troopers carried out "multiple searches of 
the car, turning up nothing." In the process, they removed parts 
of the floorboards and carpet, causing damage estimated at $ 
1,089.21. When the incident ended more than two hours later, 
Gerald says, his son was hysterical, and his baggage and car 
were "a mess." When he complained about the damage, Gerald says, 
one of the troopers responded, "We ain't good at repacking."
Reginald Shuford, the ACLU lawyer representing Gerald, says he 
took the case because of the uniquely "compelling" nature of the 
complaint. "This is a decorated serviceman who has spent half 
his life defending the United States overseas," Shuford said in 
an interview. "But on his own soil he is treated as if he has no 
rights. He is humiliated in front of his own son."
The Oklahoma case brings to eight the number of cases the ACLU 
is pursuing related to alleged racial profiling. Included in 
that number is a class-action dispute in Maryland involving 18 
plaintiffs and the NAACP. They allege that Maryland authorities 
engaged in racial discrimination in highway stops along 
Interstate 95. "There has to be a revolutionary change in the 
way law enforcement is conducted," Shuford said. "There is no 
question about whether racial profiling exists, the question is 
what should be done about it?"
(Copyright 1999 Gannett Company, Inc., USA TODAY)
RACIAL PROFILING: Suit Challenges NJ State Police Turnpike Stops
----------------------------------------------------------------
Four of Philadelphia's top civil rights lawyers have joined 
forces to file a class-action suit in U.S. District Court in New 
Jersey alleging claims of racial profiling by the New Jersey 
State Police. Attorneys Alan L. Yatvin and Howard D. Popper of 
Popper & Yatvin filed the suit on behalf of two African-American 
motorists and the South Burlington County Branch of the NAACP. 
Joining them as co-counsel are David Rudovsky of Kairys Rudovsky 
Epstein Messing & Rau and Professor Seth F. Kreimer of the 
University of Pennsylvania Law School, as well as Justin T. 
Loughry of the Cherry Hill firm Tomar Simonoff Adourian O'Brien 
Kaplan Jacoby & Graziano.
The suit alleges that "for a significant period of time, the 
defendants have engaged in a practice, policy or custom of 
racial profiling on the New Jersey Turnpike. Plaintiffs, on 
behalf of themselves and all others similarly situated, seek to 
enjoin this policy, practice or custom of stopping, questioning, 
detaining and searching motorists on New Jersey highways because 
of their minority status and/or without the requisite cause 
required by the United States Constitution and state laws."
Named as defendants in the suit are former New Jersey State 
Police Superintendents Colonel Carl A. Williams and Clinton 
Pagano, current Superintendent Colonel Michael Fedorko, former 
Attorney General Peter Veniero, and the New Jersey Turnpike 
Authority. Yatvin said police misconduct cases are unique in 
many ways, but that "this case is even more unusual in that 
massive numbers of people appear to have suffered deprivation of 
their rights simply because they fit some offensive, 
unconstitutional profile." Although a suit is already underway 
in New Jersey's state courts, Yatvin said "we wanted to put 
together a team of lawyers with the experience and expertise to 
litigate this massive civil rights class action in federal 
court."
Loughry is one of the attorneys handling State of New Jersey v. 
Pedro Soto, et al. in which New Jersey Superior Court Judge 
Robert E. Francis ruled in March 1996 that the New Jersey State 
Police did make race-based profile stops to increase criminal 
arrests and that this practice violated minority motorists' 
constitutional rights to equal protection and due process. 
Rudovsky is a Senior Teaching Fellow at the University of 
Pennsylvania Law School and is the co-author of Police 
Misconduct: Law and Litigation, the seminal resource material 
for lawyers who focus on police misconduct. In his three decades 
as a lawyer, Rudovsky has litigated numerous police misconduct 
cases in a variety of courts, including the U.S. Supreme Court, 
where he successfully argued City of Canton v. Harris, a 
landmark case that has profoundly affected the standards for 
establishing municipal liability in police misconduct cases. 
Kreimer, who teaches Constitutional law and Constitutional 
litigation, often joins Yatvin and Rudovsky in major cases, 
including the recent litigation over the 39th District police 
corruption scandal. 
The New Jersey suit, which seeks both damages for the members of 
the class and remedial injunctive relief, has been assigned to 
U.S. District Judge Joseph E. Irenas. The suit alleges that for 
almost 25 years there have been complaints of racism on the 
Turnpike by both the public and, in more recent years, by 
minority State troopers themselves. In 1975, the U.S. Justice 
Department filed a lawsuit against the NJSP under the Civil 
Rights Act of 1964 and the Equal Opportunity Act of 1972, 
alleging that the NJSP overlooked qualified minority and women 
applicants for employment. The court criticized the department 
for ignoring past findings of discriminatory practices and not 
setting up objective and standardized criteria and procedures 
for assignments, tenure, promotion and discipline to assure that 
minorities and women are treated equally and fairly. 
In response to the lawsuit, the NJSP agreed in a consent decree 
to increase the number of African-Americans and Hispanic 
troopers to 14 percent of the State Police force within five 
years. At that time, out of 1,765 troopers employed by the State 
Police, 13 were black, five were Hispanic and there was only one 
woman. Thereafter, three subsequent decrees were entered into in 
the Department of Justice lawsuit before the lawsuit was 
resolved in 1992 17 years after the suit was filed.
In 1989, WOR (Channel 9) television aired a four-part 
investigative news program documenting racial profiling by the 
NJSP entitled "Without Just Cause." The series included the 
complaints of dozens of black motorists allegedly stopped, 
detained, humiliated, but not arrested. The news program also 
presented statistical data revealing that, whereas the 
percentage of black motorists driving the turnpike was modest, 
between 75 percent and 89 percent of all persons stopped by the 
NJSP were minorities and that 76 percent of those arrested were 
black. The suit says trooper training has included information 
alleging that black people of American, Jamaican and Nigerian 
background, and Hispanic people who can trace their ancestry to 
several Latin American countries, are the people transporting 
drugs through the state. "The training exacerbated racism by 
suggesting to some state troopers that Jamaicans were 
particularly violent," the suit says. "A training video featured 
sensationalized and fictional movie clips portraying one 
Jamaican slashing another with a knife and showing street 
violence during a political demonstration ... all of which had 
nothing to do with drug trafficking."
In Soto, Judge Francis found that race was a critical trigger 
for police stops, including statistical evidence that a black 
was 4.85 times more likely than a white to be stopped by 
troopers. Francis found that the racially discriminatory 
practices were tolerated and even encouraged at the highest 
levels of State Police, saying that the "utter failure of the 
State Police hierarchy to monitor and control ... or investigate 
the many claims of institutional discrimination manifests its 
indifference if not acceptance" of those unconstitutional 
practices. But the suit says that instead of reacting 
responsibly to the Soto decision and making the necessary 
changes in the police bureaucracy, New Jersey officials 
"attempted to conceal the disparity."
Only last month, the suit says, Attorney General Verniero 
"finally commenced review of the data that had been ignored, and 
which demonstrated that the practice of racial profiling was 
both real and entrenched." The belated move came in response to 
outcry over the shootings of four unarmed black men in April 
1998. The Interim Report of the State Police Review Team 
Regarding Allegations of Racial Profiling reported that state 
troopers singled out black and Hispanic motorists because of the 
color of their skin, and that once they were pulled off the 
road, they were three times as likely as whites to have their 
cars searched.
(Copyright 1999 American Lawyer Media)
ROTHMANS HOLDINGS: Smokers Take on Australian Tobacco Industry
--------------------------------------------------------------
>From Sydney, ROTHMANS HOLDINGS LIMITED reports that it has 
recently been served with two Statements of Claim, which have 
now been merged into one, which seek to initiate a class action 
against the company and other companies in the tobacco industry 
in Australia, claiming unspecified damages for the alleged 
effects of smoking. 
The company considers it has no liability in these matters, and 
will vigorously defend itself in the proceedings. 
SECURITIES LITIGATION: Insurer Recommends Defensive Measures
------------------------------------------------------------
The Journal of Commerce reports that a Reliance National 
Insurance Co. executive urged risk managers to consider 
purchasing directors and officers liability insurance to protect 
their companies in light of the proliferation of class-action 
securities lawsuits filed by disgruntled stockholders. Nicholas 
J. Conca, first vice president and claims counsel of Reliance 
National's Financial Products Division, New York, said firms 
with suitable D&O insurance "should be in a better position to 
thwart or at least mitigate the impact of securities 
litigation."
During a panel discussion at a seminar, "Securities Laws and 
Corporate Governance: the Advent of a Meltdown?," last week, Mr. 
Conca said D&O insurance "can be instrumental in not only 
funding the defense and settlement of a securities litigation 
claim, but the insurance company can put its intellectual and 
financial capital into the mix in defending against such a 
lawsuit." In 1995, Congress passed the Private Securities 
Litigation Reform Act, which was aimed at limiting securities 
litigation in general and curtailing frivolous lawsuits in 
particular. However, Mr. Conca said that he "sees a potential 
meltdown of the protections that the PSLRA sought to afford. The 
large volume of cases that have been filed since the law was 
enacted in December 1995 strongly suggest that PSLRA has not 
produced the desired results."
Mr. Conca said the National Economic Research Associates, White 
Plains, N.Y., found that more than 600 federal securities class-
action lawsuits have been filed since PSLRA's enactment, with 
the numbers of such cases climbing some 30 percent to a record 
high of 239 in 1998 from 183 in 1997. The previous record was 
227 in 1994. The 1998 volume of federal securities suits shows a 
litigation rate of close to one a day for every trading day the 
stock market is open, said Joseph A. Grundfest, director of the 
Roberts Program for Law, Business and Corporate Governance at 
the Stanford Law School.
In terms of federal securities lawsuits filed from 1996 through 
1998, Mr. Snow estimated that settlement values range from 
$500,000 to $70.2 million, with the average being some $10.5 
million. Settlements typically represent about 10 percent of the 
damages sought by plaintiffs, said Mr. Grundfest who noted that 
the amounts depend on how the figures are computed. "Publicly 
traded corporations and particularly high tech companies are 
extremely vulnerable to lawsuits brought by shareholders 
alleging violations of various federal and state securities 
laws," said Mr. Conca. He added that shareholder complaints can 
include allegations of inadequate or inaccurate disclosure of 
pertinent financial information, financial statement fraud, 
insider trading, and/or mismanagement.
D&O insurance protects corporate officers and directors against 
damages related to civil claims stemming from alleged negligent 
acts, errors or omissions while performing their job functions. 
The coverage also pays a company's legal expenses associated 
with allegations of director or officer negligent acts. In 
addition to providing insights on the value of proper insurance 
protection, panelists offered other recommendations to risk 
managers. "Companies need to be careful about what they say 
after their stock takes a dip," said Mr. Lerach.
"Firms can reduce their litigation exposures 90 percent," Mr. 
Snow said, "by taking various steps such as implementing 
effective loss prevention controls dealing with disclosure of 
corporate financial results and ensuring that they effectively 
communicate with securities analysts on company financial 
results and operations." Mr. Snow warned firms to "avoid playing 
the role of financial analysts who are paid a lot of money" to 
analyze and interpret a company's condition and make financial 
projections. "Companies want to fully apprise the financial 
community about the dynamics which affect their business, but 
they don't want to do the financial analyst's job."
"A corporate executive such as a CEO wouldn't want to say 
something that could be used as evidence against the company by 
a plaintiff in a securities lawsuit," Mr. Conca said.
(The Journal of Commerce)
SUPERMARKETS GENERAL: Settles Royal Ahold Acquisition Complaint
---------------------------------------------------------------
Supermarkets General Holdings Corporation ("SMGH") and the other 
defendants in a purported stockholder class action lawsuit have 
reached an agreement in principle with the plaintiff to settle. 
The lawsuit, entitled Wolfson v. Supermarkets General Holdings 
Corporation, et. al., C.A. No. 17047, was filed on March 23, 
1999, on behalf of the holders of the SMGH preferred stock 
against SMGH and its directors, its parent company, SMG-II 
Holdings Corporation and Royal Ahold's wholly-owned subsidiary, 
Ahold Acquisition. 
The action relates to the pending tender offer by Ahold 
Acquisition to purchase all of the outstanding shares of 
preferred stock of SMGH at $38.25 per share that was announced 
on March 9, 1999. The offer has been made pursuant to an 
agreement under which Royal Ahold, the international food 
retailer, will acquire all of the outstanding shares of the 
capital stock of SMG-II. SMG-II controls the U.S. supermarket 
company, Pathmark Stores, Inc.
The proposed settlement is subject to, among other things, 
execution of a definitive settlement agreement and related 
documentation with the plaintiff and the approval of the 
settlement by the Court of Chancery of the State of Delaware. 
Upon such approval becoming final, SMGH and Ahold Acquisition 
have agreed that Ahold Acquisition will increase the offer price 
in its tender offer to $40.25 per share of SMGH preferred stock, 
less any fees and expenses awarded to plaintiff's counsel by the 
Court. Plaintiff's counsel currently intends to apply to the 
Court for an award of fees and expenses in an aggregate amount 
of $1,956,268.40, or $0.40 per share of SMGH preferred stock. 
Thus, if the Court approves the settlement and the counsel for 
the plaintiff's petition for fees and expenses in full, the 
amended offer price will be $39.85 per share of SMGH preferred 
stock.
WWII REPARATIONS: More Suits Planned Against German Companies
-------------------------------------------------------------
Negotiations over a settlement between German banks and 
industrial companies and Holocaust survivors will intensify this 
week, with new lawsuits and a fresh round of negotiations in 
Washington. 
Edward Fagan, one of the most aggressive class-action lawyers 
who has sued German companies as well as Swiss banks and 
European insurers, is planning to launch a series of fresh class 
actions today. Each will involve a discrete group of survivors, 
and there will be separate suits covering plaintiffs from 
Australia, Poland, Hungary, the Czech Republic, Italy, Romania, 
Lithuania, Greece, Canada and Israel, which has the largest 
population of Holocaust survivors.
Each action will involve complaints against banks, for their 
role in the forced Aryanization of Jewish property, and 
industrial companies for their use of forced and slave labor.
(Springfield Journal-Register; 05/10/99) 
                            ********* 
S U B S C R I P T I O N  I N F O R M A T I O N 
Class Action Reporter is a daily newsletter, co-published by 
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Copyright 1999. All rights reserved. ISSN XXXX-XXXX. 
This material is copyrighted and any commercial use, resale or 
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