Law firm Lerach Coughlin Stoia Geller Rudman & Robbins LLP on Monday filed a lawsuit against mortgage lender Countrywide Financial Corp that seeks class action status.

The suit was filed in the U.S. District Court for the Central District of California on behalf of purchasers of Countrywide common stock during the period between Jan. 31, 2006 and Aug. 9, 2007, the firm said in a statement.

Microsoft Chief Executive Steve Ballmer made assurances that there would be no corporate "jujitsu." Cisco Systems' CEO John Chambers said he trusted Microsoft.

In an unusual press event to showcase their evolving business alliance, the leaders of the two tech giants Monday described how an increasing level of collaboration, as well as "respectful" competition, will drive the next wave of innovation and business success.

The alliance between Cisco and Microsoft, Chambers said, "could be a role model for our industry."

Seven initiatives, ranging from security to entertainment, were announced in a New York press conference. Questioned first by television interviewer Charlie Rose and later by business reporters, Ballmer and Chambers explained how a partnership that began 10 years ago had deepened in the past three years.

Ballmer, known for his intense manner, and Chambers, more diplomatic with a soft West Virginia drawl, offered a vision that sharply contrasted with the historic and fierce rivalry between Microsoft and some other Silicon Valley companies, such as Apple, Netscape and Sun Microsystems. Allegations of anti-competitive practices have dogged Microsoft since at least 1991, ultimately leading to a federal antitrust lawsuit and settlements that required the Redmond, Wash., company to change some of its practices.

Cisco's relationship with Microsoft has never been that adversarial. On Monday, the executives said collaboration would occur whether they participate or not because the so-called Web 2.0 era makes it easier for users to share information and work together.

Moreover, customers are demanding such cooperation because they expect technology to become more user-friendly, Ballmer and Chambers said. Rather than choosing one company's line of products, they explained, business customers are asking for "interoperability" on a range of products from the companies. Business clients, Ballmer said, are still "glad for the competition," but also saying, "tell me how you are going to work with Cisco."

Chambers, returning to a favorite theme, said he believed that collaboration between companies will deliver the next wave of innovations.

Cisco and Microsoft are teaming up on projects that previously would have been handled internally. Until now, homegrown patents and acquisitions have been the primary ways for a company to grow its technology portfolio.

Microsoft's reputation for rough business tactics was noted in the press conference. Questioned by a reporter, Ballmer said Microsoft would not try to manipulate the alliance for a competitive advantage against Cisco. It's not a scenario, Ballmer said, of Microsoft executives anticipating a meeting in which "John's (Chambers) going to tell us everything he's doing so we can jujitsu him. That's not going to happen." Chambers later said the alliance would work because he trusts Microsoft.

But collaboration will pose a management challenge, particularly in research and development, Chambers said. He noted that it already was difficult within Cisco to manage research across departmental "silos." "This requires a very sophisticated level of management," he said.

The alliance, according to a press release, will focus on several key areas of collaboration, including:

• IT architecture. "Customers are asking Microsoft and Cisco to come together on their infrastructure visions . . . as manageability, performance, security and scalability become even more critical to success in the evolving service-oriented infrastructure."

• Security. Because of the increased threats of viruses and hacks, "true security requires an architectural approach vs. a deployment of point solutions." Moreover, Cisco and Microsoft are working with storage giant EMC on the Secure Information Sharing Architecture, which allows government agencies to more effectively share confidential information across traditional boundaries.

• Wireless and mobile. The companies are working to allow Cisco's Unified Communications Manager to interact with Windows Mobile-powered devices. "This will enable customers to enjoy integrated presence, telephony, calendaring and other unified communications capabilities."

• Connected entertainment. Anticipating an Internet-driven revolution in home entertainment, the partnership will promote interoperability in areas like Internet Protocol TV.

Both executives said the companies still expect to compete in many areas. Ballmer said he respects Cisco's products but that in areas of direct competition such as Web conferencing, "I respect ours more."

Forty-eighty-year-old Thomas Montgomery of Cheektowaga pleaded guilty today to first-degree manslaughter in the killing of 22-year-old Brian Barrett of Lockport.

Barrett's body was found in his vehicle in the parking lot of the suburban Clarence company where both men worked.

Montgomery admitted to shooting Barrett three times last September. He and Barrett had been involved in an Internet relationship with a middle-aged West Virginia woman who was using her daughter's Web page information to pose as an 18-year-old.

Montgomery -- who was charged with murder in late November -- faces sentencing at the end of October.

American Airlines (AA) is suing Google Inc over the Internet firm's sale of keyword ads for rivals trig-gered by its own trademarks.

A Google visitor who enters certain words or phrases that AA trademarked -- for example, Aadvantage, the name of its frequent-flier program -- will get links to AA's Web site but also its rivals under "sponsored links" -- targeted ads that appear alongside the regular search results.

Google makes most of its money from such keyword ads.

AA filed a lawsuit on Thursday in US District Court seeking unspecified damages.

"When done right, search is a great tool, but we have a problem with this part of their business," AA spokesman Billy Sanez said.

Sanez said the results could confuse consumers and divert customers away from AA's own site.

American Airlines, a unit of AMR Corp, tried to negotiate a settlement with Google before going to court, Sanez said.

Google spokesman Jon Murchinson said the company is "confident that our trademark policy strikes a proper balance between trademark owners' interests and consumer choice, and that our position has been validated by decisions in previous trademark cases."

Similar lawsuits against Google are fairly common, although they tend to involve smaller companies.

More than two years ago, a federal judge ruled in a similar case filed by insurer Geico Inc, ruling that Google's advertising practices were legal. Geico had said Google was letting rival insurance companies pay to have their ads displayed when a user searched for "Geico."

But the judge left the door open for Geico to collect damages from Google for featuring ads that used Geico's name in the text, rather than just using the trademark to trigger the ad. The two settled in 2005.

Google lost cases in France, but has won others in the US.

Private equity firm Lone Star Funds said on Monday it is seeking a court order to terminate its roughly $400 million purchase of Accredited Home Lenders Holding Co, saying the subprime mortgage lender has not met the conditions required to close.

San Diego-based Accredited had sued Lone Star on August 11 in Delaware Chancery Court, seeking to force it to complete the $15.10 per share buyout.

Lone Star said Accredited's only possible contractual remedy is a $12 million breakup fee. It said it is also seeking court declarations that Accredited has breached "numerous" other obligations to Lone Star.

Accredited shares closed Monday down 31 cents at $6.44 on the Nasdaq.

On Friday, the U.S. central bank approved a half-percentage point cut in its discount rate on loans to banks to "promote the restoration of orderly conditions in financial markets."

The decision means the discount rate, the interest rate that the Fed charges to make direct loans to banks, will be lowered to 5.75 percent from 6.25 percent.

But the Fed did not change its target for the more important federal funds rate, the interest commercial banks charge each other on overnight loans. The benchmark interest rate has remained at 5.25 percent for more than a year.

In the statement announcing the interest rate cut, the Fed said it "is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets."