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Microsoft faces class-action suit over Xbox 360
Class Action News | 2007/07/12 16:15

A Florida man has filed a $5 million federal class-action lawsuit against Microsoft this week, claiming the company is responsible for a defect in the Xbox 360 that scratches game discs and makes them unusable. Jorge Brouwer of Broward County filed the suit Monday in U.S. District Court in Fort Lauderdale, Fla. The suit was first reported on the gaming site Joystiq.

The suit claims that the Xbox 360 was "negligently designed and manufactured" in that the video-game console's laser disc reading assembly contacts and scratches discs. "The scratches to the game discs render them unreadable or otherwise inoperable," the suit says. Brouwer said the Xbox 360 he bought in November 2006 destroyed the Gears of War and Madden NFL '0" video-game discs he bought for $50 each. Microsoft was not immediately available for comment.

The lawsuit was filed less than a week after Microsoft said it would set aside more than $1 billion to extend the warranty protection on the Xbox 360 to cover what the company called an "unacceptable" number of repairs to the consoles. The main problem was a defect that caused a general hardware failure. Microsoft said it would take a financial charge against pretax earnings of as much as $1.15 billion in the quarter ending June 30 to cover the cost of the extended warranty protection.

In his lawsuit, Brouwer claimed to have received thousands of complaints from U.S. Xbox users who have had game discs damaged. Microsoft has replaced some damaged disks at $20 each, provided the games were made by Microsoft, the suit said. "However, defendant has not replaced all of its titles that have been scratched and refused to replace or provide any compensation for any scratched game discs made by third-parties."

The suit alleges that the problem is not limited to the United States. A Dutch TV program, Kassa, received numerous complaints in February of disc-damaging Xbox consoles from customers in that country, the suit noted. Kassa investigated and later ran its own tests, which found that some Xbox 360s scratched game discs after five hours of playing.

Microsoft Netherlands, according to the suit, acknowledged that disc scratching was possible in some machines, and the company "would seek a solution for the Dutch customers with this problem."

The complaint also lists Microsoft's extended warranty plan as further proof of the Xbox's defective hardware. "At all times material to this complaint, the defendant had full knowledge that there are other numerous design defects with its Xbox 360 system and console, including the defective laser disc reading assembly," the complaint said.

In seeking damages, the suit alleges that Microsoft has breached its warranty to customers and is liable for damages caused by the consoles. The suit asks the court to order Microsoft to pay actual and consequential damages, including replacing damaged discs and repairing defective consoles. The Xbox costs as much a $479.

In December, the family of an Illinois infant who died in a house fire sued Microsoft, claiming the blaze was started by an Xbox that overheated.



Pozen settles class-action lawsuit against company
Class Action News | 2007/07/10 12:11

Pozen Inc. (POZN.O: Quote, Profile, Research), which develops drugs to treat acute and chronic pain, said on Tuesday it has settled a class-action lawsuit filed against the company and its chief executive officer, Dr. John Plachetka.

Pozen said all claims against the company and Plachetka will be dropped without admission of wrongdoing by any party.

The settlement agreement, which remains subject to court approval, will be funded with proceeds from the company's directors and officers' liability insurance.

About POZEN

POZEN is a pharmaceutical company committed to developing therapeutic advancements for diseases with unmet medical needs where it can improve efficacy, safety, and/or patient convenience. POZEN's efforts are focused primarily on the development of pharmaceutical products for the treatment of acute and chronic pain and other pain-related conditions. POZEN has development and commercialization alliances with GlaxoSmithKline for the proposed product candidate Trexima combining sumatriptan, formulated with RT Technology, and naproxen sodium in a single tablet for the acute treatment of migraine, which is currently under review by the United States Food and Drug Administration, and with AstraZeneca for proprietary fixed dose combinations of naproxen with the proton pump inhibitor esomeprazole magnesium in a single tablet for conditions such as osteoarthritis and rheumatoid arthritis in patients who are at risk for developing NSAID-associated gastric ulcers. The company's common stock is traded on The Nasdaq Stock Market under the symbol "POZN". For detailed company information, including copies of this and other press releases, see POZEN's website: www.pozen.com.



Federman & Sherwood Files Class Action Lawsuit
Class Action News | 2007/07/09 14:15

Friday evening, Federman & Sherwood said that a class action lawsuit was filed in the United States District Court for the Southern District of New York, on July 5, 2007 against Threshold Pharmaceuticals, Inc. (THLD | charts | news | PowerRating). The complaint alleges violations of federal securities laws, Sections 10(B | charts | news | PowerRating) and 20(A | charts | news | PowerRating) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material misrepresentations to the market which had the effect of artificially inflating the market price.

THLD closed Friday's regular trading session at $1.18, down $0.06 or 4.84%. However, in after hours trading, shares grew $0.0147 or 1.25%, trading at $1.1947.




Finkelstein Thompson Files Class Action vs. Telik
Class Action News | 2007/07/05 18:15

Notice is hereby given that Finkelstein Thompson LLP has filed a Class Action lawsuit in the United States District Court for the Northern District of California on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired the common stock of Telik, Inc. ("Telik" or the "Company") between March 27, 2003 and June 4, 2007, inclusive (the "Class Period"), including purchasers in the Company's November 5, 2003 and January 28, 2005 stock offerings.

A copy of the Complaint is available from the court or from Finkelstein Thompson LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (202) 337-8000 or Toll Free at (877) 337-1050, by email at info@finkelsteinthompson.com, or visit our website at http://www.finkelsteinthompson.com.

The Complaint charges Telik and certain of the Company's executive officers with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiff alleges that Defendants' material omissions and dissemination of materially false and misleading statements concerning the Company's business and prospects caused Telik's stock price to become artificially inflated, causing damage to investors. Telik is a biopharmaceutical company that engages in the discovery and development of small molecule therapeutics for the treatment of cancer and inflammatory diseases. The Company's lead product candidate is TELCYTA, a small molecule cancer drug product candidate designed to be activated in cancer cells. The Complaint alleges that during the Class Period defendants misled investors about the effectiveness and safety of TELCYTA and the conduct of certain clinical trials for TELCYTA.

Specifically the Complaint alleges that when the Company issued preliminary results from its Phase III clinical trials of TELCYTA, defendants materially misled the investing public by concealing that patients in those trials were dying much sooner than patients receiving the standard chemotherapy treatment.

On June 3, 2007 the Company announced additional details concerning the negative results of the Phase III clinical trials of TELCYTA. This news caused the Company's stock to open on Monday, June 4, 2007 more than 15% lower than the previous trading day's closing price. By the end of trading that day, the stock had dropped even further. The Company further announced on June 4 that the FDA had initiated a clinical hold on the New Drug Application for TELCYTA, causing Telik stock to fall more than 25% on June 5, 2007.

Plaintiff seeks to recover damages on behalf of Class members and is represented by Finkelstein Thompson LLP. Finkelstein Thompson LLP has spent almost three decades delivering outstanding representation to institutional and individual clients in connection with securities and other finance-related litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, in the past decade, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers.

If you are a member of the class, you may, no later than August 6, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member appointed by the Court to direct the litigation on behalf of the class. Although a class member need not be appointed as a lead plaintiff to receive a proportionate share of any proceeds of the litigation, lead plaintiffs make important decisions that could affect the prosecution of the class claims, including decisions concerning settlement. The securities laws create a rebuttable presumption that the plaintiff with the largest financial interest in the litigation is the most adequate to serve as a lead plaintiff.

If you are a Telik shareholder and wish to discuss the case or have information relevant to the investigation, please contact our Washington, DC office toll-free at (877) 337-1050, or by email at contact@ftllaw.com.



Judge Grants Class-Action Status Against Scripps
Class Action News | 2007/07/05 18:06

A San Diego Superior Court judge has granted class-action status to a lawsuit accusing Scripps Health hospitals of overcharging uninsured patients.

The suit alleges that uninsured Scripps patients pay as much as four times more than patients covered by Medicare or private insurance for the same procedures.

Judge Steven Denton made the class-action designation.

The suit seeks refunds that may exceed $100 million for 100,000 uninsured patients who allege they were overcharged by Scripps' five San Diego hospitals since 2002.

The suit also seeks penalties.

Scripps spokesman Don Stanziano said the company strongly objects to the accusations.

"Scripps is proud of our service to the community," Stanziano said.



Logan man part of class action suit against Lottery
Class Action News | 2007/07/04 18:34
A Logan man, Chris Channing, is part of a class action law suit seeking to stop the New Mexico State Lottery from pulling games from the market that still have substantial cash prizes available, according to court papers filed last week in Bernalillio County. Others specifically named as a part of the class are Randy Stansell of Clovis who is the owner of Stansell's Thriftway Supermarket, Kenneth Nutt of Clovis who is the owner of three KC Express stores, two in Clovis and one in Portales, and Channing, who is an employee of the Logan Super Stop.

Attorneys Warren F. Frost and Timothy L. Rose filed the class action complaint alleging violation of the Unfair Practices Act, negligent misrepresentation and injunctive relief.

Lottery spokeswoman Linda Hamlin said Tuesday that lottery officials were reviewing the complaint and that it would be premature to comment.

In their complaint, it states that those in the class are frequent players of the New Mexico scratch off games and their decisions on which games to purchase are based upon the representations of the Lottery as the prize money available when a new scratch off game is introduced and on the information provided by the Lottery concerning how many top prizes are still available.

The suits requests the Lottery award the class damages, that permanent injunction be issued to stop the Lottery from discontinuing scratch-off games and define the specific circumstances when the Lottery can pick up unsold scratch games.


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