CAR_Public/020830.mbx                C L A S S   A C T I O N   R E P O R T E R
  
               Friday, August 30, 2002, Vol. 4, No. 172

                            Headlines
                          
ARTHUR ANDERSEN: $60M Group Settlement of Enron-Related Suits Likely
AUTO INSURANCE: One-Car Owners Sold Stacked Multiple-Car Policies
AUTOBYTEL INC.: Asks NY Court To Dismiss Consolidated Securities Suit
BELLSOUTH CORPORATION: Cannot Bar Black Judge In Racial Bias Lawsuit
CALIPER TECHNOLOGIES: Asks NY Court To Dismiss Securities Fraud Suit

CORNELL COMPANIES: Court Consolidates Suits For Securities Violations
CORNELL COMPANIES: Faces Shareholder Derivative Suit In TX State Court
CORNELL COMPANIES: Facing Three Shareholder Derivative Suits in TX
DPL INC.: Ruling In Securities Suit May Delay Discovery, Depositions
FLORIDA: State & Counties To Settle NAACP Lawsuit Over 2000 Elections

GOLF TRUST: Denies Liability in Shareholder Derivative Suit in MD Court
INTERNATIONAL SPECIALTY: Faces Seven Securities Suits in DE, NJ Courts
JCC HOLDINGS: Faces Suits Over Proposed Merger with Harrah's in DE
LERNOUT & HAUSPIE: U.S. Arm Of KPMG Can Be Joined In Shareholder Suits
METAWAVE COMMUNICATIONS: Up Against Several Securities Suits in WA

MENORAH GARDENS: Claims Desecration Suit Does Not Warrant Class Status
METAWAVE COMMUNICATIONS: Confronting Securities Suit in New York
MICHIGAN: Lawsuit Filed Over Illegal Mental Health Patient Releases
NATIONAL SECURITIES: Sued Over Securities Placement In Fastpoint
NATIONWIDE FINANCIAL: OH Court Refuses To Add New Plaintiffs To Suit

NATIONWIDE FINANCIAL: CT Court Hears Arguments For Dismissal of Suit
PALM INC.: Consumers Sue Over Color-Display Error In Hand-Held Device
RAYOVAC CORPORATION: Faces Several Securities Fraud Suits in W.D. WI
SPANISH BROADCASTING: Asks NY Court To Dismiss Securities Fraud Suit
SUNTERRA CORPORATION: Plaintiffs File Amended Securities Suit in FL

TODSON INC.: Voluntarily Recalls 10,000 Floor Pumps For Injury Hazard
VIANT CORPORATION: Asks NY Court To Dismiss Amended Securities Suit
WALT DISNEY: $1B in Royalties At Stake In Winnie The Pooh Case

                         Asbestos Alert

FEDERAL-MOGUL CORP.: Increases Asbestos Costs Estimate to $1.6 Billion
OWENS CORNING: Deadline to Draft Reorganization Plan Set For August 30
PPG INDUSTRIES: Settles Several Asbestos Liabilities For US$2.7 Billion
USG CORPORATION: Asbestos Costs Projected To Soar to $1.3B in 2003

                    New Securities Fraud Cases

AOL TIME: Faruqi & Faruqi Commences Securities Fraud Suit in S.D. NY
CHARTER COMMUNICATIONS: Cohen Milstein Lodges Securities Suit in DC
CRYOLIFE INC.: Berger & Montague Commences Securities Suit in N.D. GA
EL PASO: Chitwood & Harley Commences Securities Fraud Suit in S.D. TX
HOUSEHOLD INTERNATIONAL: Bernstein Liebhard Files Securities Suit in IL

INTERPUBLIC GROUP: Bernstein Liebhard Lodges Securities Suit in S.D. NY
MERRILL LYNCH: Finkelstein Thompson Lodges Securities Suit in C.D. CA
MERRILL LYNCH: Kaplan Fox Commences Securities Fraud Suit in S.D. NY
MSC INDUSTRIAL: Schiffrin & Barroway Lodges Securities Suit in E.D. NY


                           *********


ARTHUR ANDERSEN: $60M Group Settlement of Enron-Related Suits Likely
--------------------------------------------------------------------
Andersen Worldwide SC agreed, tentatively, to pay US$60 million to
settle lawsuits related to the collapse of Enron Corporation, an amount
which is a fraction of what was lost by Enron's shareholders, creditors
and employees, as hopes dim for recovery of anything more substantial
from the Enron's former accounting firm, The Wall Street Journal
reports.

The potential settlement with the Swiss organization that oversees
Andersen Worldwide's far-flung partnerships, is taking place against a
backdrop of steadily diminishing expectations for Enron's claimants,
who as recently as February had hoped to extract as much as $750
million from Andersen.

Arthur Andersen LLP, the US partnership that audited Enron's books, is
not a party to the potential settlement.  Court-ordered settlement
talks with Andersen in the United States broke down in May.  Since
then, the American operation has shut down almost entirely, leaving
behind a limited-liability partnership with little revenue, uncertain
finances and a host of potential legal liability stemming from various
audits.

Andersen Worldwide is believed to be better off.  It is believed that
each departing office of the partnership has been pressed to live up to
the contractual obligation to pay 1.5 times its previous-year revenue
to the global organization.  Although it is unclear how much Andersen
Worldwide has received in these transactions, it reported revenue of
$4.8 billion outside the United States in 2001.

The University of California, lead plaintiff in the class action
brought by Enron shareholders, announce recently that it had reached a
tentative settlement of the case for $40 million and that Enron
employees who have sued separately to recover lost retirement savings
are slated to share in this settlement.  

Enron creditors are close to a separate agreement to settle claims
brought in federal bankruptcy court for about $20 million, people
familiar with the matter say.  Thus, Andersen Worldwide SC's readiness
to settle for $60 million places the settlement at a manageable point.

There had been sharp differences between Andersen Worldwide and the
Enron claimants over the Geneva-based umbrella organization's role in
the Enron matter and legal status in the litigation, said a person
involved in the matter.  However, as one person involved on behalf of
one group of claimants said, "$40 million is better than zero."

If such a settlement is finalized, Enron claimants would remove
Andersen Worldwide as a defendant in lawsuits against Andersen's US
partnership and others, which are pending in federal district court in
Houston.  While Enron shareholder maintain they intend to press ahead
with their claim against Andersen's US partnership, they concede that
prospects for recovery are uncertain.  The lawyers involved in the
matter hope to complete negotiations with the Swiss umbrella
organization for Andersen Worldwide hope to complete negotiations by
later this week.

Little is known about the finances of Andersen's US arm, although it
has insisted repeatedly that a bankruptcy filing is not imminent.  It
has been striking deals for months under which competing firms have
been acquiring Andersen practice groups, paying Andersen an average of
between $100,000 to $200,000 per partner, in return for releases from
partners' contractual obligations to Andersen.  Roughly, three-quarters
of Andersen's 1,750 US partners have been placed at other firms.
Andersen, also, has been receiving payments for work completed earlier
this year.

Andersen has made slowly decreasing offers of settlement at spaced
intervals:

     (1) In February, Andersen offered $750 million to settle all
         claims by sharehoders, employees and creditors.  Attorneys
         leading the shareholder action against Andersen reject
         proposal as insufficient;

     (2) In March, Andersen slashes offer to around $375 million,
         reflecting the firm's dimming long-term prospects;

     (3) In April - Andersen offers $300 million in court-ordered
         mediation;

     (4) May 1 - Snags in negotiations lead mediator to declare talks
         dead.

In recent months, Andersen has repaid institutional holders of $200
million of private notes issued by Andersen US and guaranteed by
Andersen Worldwide, said people familiar with the matter, as well as
$217 million to settle a lawsuit brought by investors in the failed
Baptist Foundation of Arizona.  That settlement was made possible when
Andersen recapitalized, on May 30, its Bermuda-based insurance company,
Professional Services Insurance Company.


AUTO INSURANCE: One-Car Owners Sold Stacked Multiple-Car Policies
-----------------------------------------------------------------
Allstate, Progressive and four other insurance companies potentially
overcharged thousands of Florida drivers for uninsured/underinsured
motorist coverage, according to several lawsuits filed recently, The
Bradenton Herald reports.

The six lawsuits, two of them filed by Manatee County residents, accuse
the insurers of illegally charging single-vehicle policyholders more
for additional uninsured/underinsured motorist coverage that
essentially was worthless.  The nearly identical lawsuits,
simultaneously filed in Pinellas County Circuit Court, seek at least
$90,000 in total damages.

Possibly tens of thousands of Florida motorists were overcharged
millions of dollars, said Brian Eisenstadt, a St. Petersburg attorney
involved in the case.  More lawsuits could be filed against other
insurers, and the lawsuits likely will be consolidated into a single
class action, he said.

"This is probably the first time this practice has been noticed, let
alone legally challenged," Mr. Eisenstadt said.  The lawsuits contend
the insurers overcharged single-vehicle policyholders for `stacked'
uninsured/underinsured motorist coverage.  Florida does not require
either form of insurance.

Under `stacked' coverage, the coverage limits are multiplied by the
number of vehicles on the policy.  The suits contend the plaintiffs
paid for `stacked' coverage even if they had only one vehicle on their
policies.

Mr. Eisenstadt said that "cumulatively, if you take the number of
policy holders time the number of policy periods, you can get up to
pretty big numbers very quickly, and that could be millions and
millions."


AUTOBYTEL INC.: Asks NY Court To Dismiss Consolidated Securities Suit
---------------------------------------------------------------------
Autobytel, Inc. asked the United States District Court for the Southern
District of New York to dismiss the securities class action pending
against it, certain of its current directors and officers and
underwriters involved in its initial public offering.

The suit purports to allege violations of the Securities Act of 1933
and the Securities Exchange Act of 1934.  Specifically, the suit
alleges that the underwriter defendants agreed to allocate stock in the
Company's initial public offering to certain investors in exchange for
excessive and undisclosed commissions and agreements by those investors
to make additional purchases of stock in the aftermarket at pre-
determined prices.

The suit further alleges that the prospectus for the Company's initial
public offering was false and misleading in violation of the securities
laws because it did not disclose these arrangements.

The suit is being coordinated with over 300 other nearly identical
actions filed against other companies.  A motion to dismiss addressing
issues common to the companies and individuals who have been sued in
these actions was filed on July 15, 2002.

The Company believes that it has meritorious defenses to the complaint
and intends to vigorously defend the action.


BELLSOUTH CORPORATION: Cannot Bar Black Judge In Racial Bias Lawsuit
--------------------------------------------------------------------
BellSouth Corporation may not block the only black federal judge in
Birmingham Alabama from hearing a race discrimination case, a federal
court has ruled, The Wall Street Journal reports.  Class action status
is being sought for the race discrimination suit.

The Company had sought to disqualify Judge UW Clemon from hearing the
case after it hired the judge's nephew, Birmingham lawyer Terry Price,
as local counsel.  Federal law requires judges to recuse themselves if
a close relative is involved in the proceedings.

The Company said it would appeal the ruling, saying it believes "it has
a fundamental constitutional right to select counsel who it believes is
best qualified," a spokeswoman said.

Five current or former BellSouth employees allege in the lawsuit that
The Company used biased tests and "excessively subjective decision-
making practices" to discriminate against them in promotions and
raises.  The Company denies the allegations.


CALIPER TECHNOLOGIES: Asks NY Court To Dismiss Securities Fraud Suit
--------------------------------------------------------------------
Caliper Technologies, Inc. asked the United States District Court for
the Southern District of New York to dismiss the consolidated
securities class action pending against it and three of its officers
and directors.

The consolidated suit alleges claims against the Company and the
individual defendants under Sections 11 and 15 of the Securities Act of
1933, and under Sections 10(b) and 20(a) of the Securities Exchange Act
of 1934, as well as Rule 10b-5 promulgated thereunder.  The suit also
names certain underwriters of the Company's December 1999 initial
public offering of common stock.

The suit alleges that these underwriters charged excessive, undisclosed
commissions to investors and entered into improper agreements with
investors relating to aftermarket transactions.

The Company moved on July 15, 2002 to dismiss all claims on multiple
grounds.  Based on information currently available to the Company, the
Company believes that the claims are without merit, and intends to
defend this case vigorously.


CORNELL COMPANIES: Court Consolidates Suits For Securities Violations
---------------------------------------------------------------------
The United States District Court for the Southern District of Texas,
Houston Division consolidated the securities class actions pending
against Cornell Companies, Inc. and:

     (1) Steven W. Logan, and

     (2) John L. Hendrix

The consolidated suit, filed on behalf of all purchasers of the
Company's common stock between March 6, 2001 and March 5, 2002, involve
disclosures made concerning two prior transactions executed by the
Company; the August 2001 sale leaseback transaction and the 2000
synthetic lease transaction.

The suit alleges that the defendants violated Section 10(b) of the
Securities Exchange Act of 1934, Rule 10b-5 promulgated under Section
10(b) of the Exchange Act, and/or Section 20(a) of the Exchange Act.

The Company believes that it has good defenses to each of the
plaintiffs' claims and intends to vigorously defend against the suit.


CORNELL COMPANIES: Faces Shareholder Derivative Suit In TX State Court
----------------------------------------------------------------------
Cornell Companies, Inc. faces a shareholder derivative lawsuit filed in
the 127th Judicial District Court of Harris County, Texas.  The suit
also names as defendants the Company's directors, and its former
independent auditor Arthur Andersen LLP.

The lawsuit alleges breaches of fiduciary duty by all of the individual
defendants and asserts breach of contract and professional negligence
claims only against Arthur Andersen LLP.

The Company believes that it has good defenses to each of the
plaintiff's claims and intends to vigorously defend against each of the
claims.


CORNELL COMPANIES: Facing Three Shareholder Derivative Suits in TX
------------------------------------------------------------------
Cornell Companies, Inc. and its directors face three shareholder
derivative suits, two pending in the United States District Court for
the Southern District of Texas, Houston Division, and on pending in the
164th Judicial District Court of Harris County, Texas.

These lawsuits all allege breaches of fiduciary duty and waste of
corporate assets by all of the defendants.

Motions to dismiss the federal suits have been filed and are currently
pending.  The Company believes that it has good defenses to each of the
plaintiffs' claims and intends to vigorously defend against each of
these claims.


DPL INC.: Ruling In Securities Suit May Delay Discovery, Depositions
--------------------------------------------------------------------
A federal judge's ruling means it may be years before DPL Inc.
executives could be compelled to testify and turn over corporate
documents related to their handling of the Company's controversial $1
billion investment portfolio, attorneys for stockholders suing the
utility said, the Dayton Daily News reports.

On the face of it, last week's hearing was a matter of jurisdiction -
whether a $1 billion shareholders class action against the Company
should be tried in federal or state courts.  However, it was of great
strategic importance to the parties.

US District Judge Sandra S. Beckwith's ruling that the case belongs in
the federal courts means Company attorneys can halt discovery, the
pretrial information-gathering process, by simply filing a common
motion to dismiss.  Then, if the Company moves to dismiss in federal
court in Dayton, in September, discovery could not proceed until after
a long federal appeals process.

While the Company is barred from destroying pertinent records,
executives will not have to turn over the records or swear out
depositions.

"In our opinion, the cover-up continues," said Cincinnati attorney
Stanley Chesley, who represents two sets of DPL shareholders in similar
class actions filed in Dayton and Cincinnati.

The plaintiffs in both cases allege Company officers and directors
breached their fiduciary duty by placing 25 percent of the Company's
total assets at high risk, non-liquid venture capital investments in 30
countries.  Company stock plunged after the Company admitted it lost
$200 million in Latin American investments, mostly in Argentina, mired
in a four year recession and in Brazil which has had a months long
economic slowdown.

The Dayton case accuses the Company officials of securities fraud,
making it a federal case, but Mr. Chesley and Mr. Cummins sought to
remove federal claims from the Cincinnati case so it could be heard in
Hamilton County County Common Pleas court.

The plaintiffs are trying to split their causes of action and have some
in federal court, some in state court, said Company counsel Charles
Faruki, calling it "manipulation . a hollow procedural maneuver."  
Judge Beckwith agreed, but ordered the Company to preserve documents
concerning the investment portfolio.


FLORIDA: State & Counties To Settle NAACP Lawsuit Over 2000 Elections
---------------------------------------------------------------------
The National Association for the Advancement of Coloured People's
(NAACP) lawsuit over Florida's disputed presidential election appears
headed for a close at the state and two counties, the only remaining
defendants, have agreed to a settlement, attorneys announced, according
to a report by the Associated Press Newswires.

Joseph Klock, an attorney for the state, told US District Judge Alan
Gold that all parties promised to file final papers by Friday this week
for approval.  Attorneys would not discuss the terms.

The class action filed by the NAACP and other civil rights groups
argued that voters were disenfranchised during the November 7, 2000
election.  There were allegations that blacks were kept from voting in
some counties by the employment of various practices.

The state and Orange and Hillsborough Counties are the only holdouts in
the lawsuit.  Miami-Dade, Broward, Leon, Volusia and Duval counties
settled earlier rather than face trial.

Settlement provisions include sweeping modifications to voter
registration, voter-roll maintenance and polling practices.  They
also required counties to improve election day communications between
precincts and election headquarters, and in some cases guaranteed
foreign language-speaking workers would be at the polls to assist
voters.

After a lengthy battle that reached the US Supreme Court, President
Bush's 537-vote margin over Al Gore in Florida swung the outcome for
the presidency.

The state had argued the Legislature adequately addressed the problems
by standardizing recount rules, eliminating punch cards voting systems
and allowing provisional balloting.  However, plaintiffs argued Florida
still had not done enough to avoid the wrongful turn-away of voters.

A settlement would eliminate the likelihood of republication of the
unflattering headlines from a trial projected to last through parts of
Governor Jeb Bush's re-election campaign.  With new laws and new voting
equipment in place, the September 10 primary will be the first big test
of Florida's updated election machinery.


GOLF TRUST: Denies Liability in Shareholder Derivative Suit in MD Court
-----------------------------------------------------------------------
Golf Trust of America, Inc. denied liability in the shareholder
derivative suit filed in the Circuit Court for Baltimore City,
Maryland, against it, its directors and officers, and Banc of America
Securities LLC.

The complaint purports to be a derivative action brought by Mary Ella
Crossley, who claims to be one of the Company's stockholders.  The
plaintiff alleges that payments to certain of the Company's officers
under their employment agreements and an agreement to sell golf courses
to Legends resulted from a breach of the defendants' fiduciary duties
to stockholders.

The complaint also alleges that the Company's officers defrauded the
company in the renegotiation of their employment agreements.  Finally,
the complaint alleges that the actions of the defendants in approving
the payments under the employment agreements and the Legends
transaction constituted a breach of the Company's charter resulting in
the unjust enrichment of certain individual defendants.

All of the defendants moved to dismiss the complaint.  In response to
the motion filed by Bank of America Securities LLC, the plaintiff
agreed to voluntarily dismiss Banc of America Securities LLC without
prejudice from the case.  The plaintiff opposed the motion to dismiss
filed by the defendants, and on May 20, 2002, the court denied that
motion.

On June 19, 2002, the Company and its directors responded to the
complaint by filing a general denial of liability.  At this stage in
the proceedings, it is not possible to predict the outcome of this
dispute.


INTERNATIONAL SPECIALTY: Faces Seven Securities Suits in DE, NJ Courts
----------------------------------------------------------------------
International Specialty Products, Inc. faces seven class actions - six
filed in the Chancery Court in New Castle County, Delaware, and one in
the United States District Court in New Jersey.  The suits were filed
after the Company announced in July 2002 that its Board of Directors
had received a letter from Samuel J. Heyman, the Chairman of the Board,
proposing that the Board consider a transaction whereby holders of
shares of the Company's common stock (other than those shares
beneficially owned by Mr. Heyman) would receive $10 in cash per share.

The suit, filed against the Company and the individual members of the
board of directors, allege generally that the defendants breached their
fiduciary duties to the Company's public shareholders with respect to
the proposed transaction and seek to enjoin or rescind the transaction
and obtain unspecified damages and attorneys' fees.

The Company believes these actions are without merit and intends, and
has been advised that the individual directors also intend, to
vigorously defend against them.


JCC HOLDINGS: Faces Suits Over Proposed Merger with Harrah's in DE
------------------------------------------------------------------
JCC Holdings Company faces two class action suits pending in the
Delaware Court of Chancery relating to the Company's proposed merger
with Harrah's Entertainment, Inc.  The suits name as defendants:

     (1) Stephen H. Brammell,

     (2) Gary W. Loveman,

     (3) Paul Debban,

     (4) Charles Teamer, Sr.,

     (5) Christopher Lowden,

     (6) Preston Smart,

     (7) Eddie N. Williams,

     (8) JCC Holding Company, and

     (9) Harrah's Entertainment, Inc.

The suits seek to enjoin the merger and seeks damages against the
defendants.  The suits attack the merger asserting allegations of
domination and control by Harrah's Entertainment and allege breaches of
fiduciary duties to the corporation and its stockholders in connection
with the merger.

The Company believes that it has strong legal and factual defenses
against these claims, and intends to contest them vigorously.  No
assurances can be given as to the outcome of such lawsuits, and
consequently, the Company cannot reasonably predict at this time
whether the final outcome of these matters will materially and
adversely affect its results of operations, cash flows, or financial
condition.


LERNOUT & HAUSPIE: U.S. Arm Of KPMG Can Be Joined In Shareholder Suits
----------------------------------------------------------------------
A federal court ruled that the US arm of accounting firm KPMG must
stand trial along with KPMG Belgium in shareholder suits arising from
accounting fraud at Lernout & Hauspie Speech Products NV, The Wall
Street Journal reports.

The ruling by Judge Patti B. Saris of the US District Court in Boston
greatly expands the possible pool of recoverable assets for Lernout
shareholders.  It also further complicates the legal problems of KPMG,
which is facing potential liabilities for its role as auditor of other
high-profile companies laid low by accounting scandals, such as Rite
Aid Corp. and Xerox Corp.

In her decision, Judge Saris cited a "panoply of `red flags,'" which
"taken together is more than sufficient to strongly support the
inference that KPMG US acted with recklessness or actual knowledge" in
helping prepare Lernout's 1999 Form 10-K, which later proved
fraudulent.

Lernout & Hauspie, a onetime European highflier that sold speech-
recognition software, was based in Belgium, but had substantial US
operations.  It filed for bankruptcy in 2001 after an audit revealed it
had booked $373 million in phony revenue from 1998 to 2000.

In her ruling, Judge Saris excluded KPMG UK, KPMG Singapore and KPMG
International, a Swiss verein, or membership association, from the US
action, but denied motions to dismiss the suit against the Belgian and
US unit.  The US audit firm had fought inclusion in the case, arguing
that unlike KPMG Belgium, it had not signed the audit reports.

Glen DeValerio, a partner at Boston law firm Berman DeValerio Pease
Tabacco Burt & Pucillo, and co-lead counsel for the shareholders, said
the ruling is "a very significant victory for all the plaintiffs,"
because of the size of the US accounting house.  He said plaintiffs
have not specified damages, but he said, "it's in the billions," and
could be as much as $3 billion.

In New York, KPMG said "the allegations against KPMG are completely
without merit," because "there was massive fraud inside L&H" designed
to fool both investors and auditors.  The firm said it would defend
itself "vigorously."

Judge Saris cited a number of allegations made in the shareholder class
action and in two separate suits brought by holders of companies
acquired by L&H, as providing sufficient reason to include the auditors
in the suit.  She noted, for example, that owners of two companies
acquired by Lernout, who also have sued the auditors, said KPMG US
representatives told them in conference calls that Lernout's accounting
met US standards.


METAWAVE COMMUNICATIONS: Up Against Several Securities Suits in WA
-------------------------------------------------------------------
Metawave Communications, Inc. faces several class actions pending
against it and its current and former officers in the United States
District Court for the Western District of Washington.  The complaints
were filed on behalf of persons who purchased the Company's common
stock between April 2001 and March 2002.

The suits allege that the Company made false and misleading statements
or omissions in violation of Sections 10(b) and 20(a) and Rule 10b-5 of
the Securities Exchange Act of 1934, and seek unspecified compensatory
damages and other relief.

The Company intends to vigorously defend against these complaints.  The
results of litigation proceedings are inherently unpredictable,
however, and the Company is unable to provide assurance regarding the
outcome of these complaints or possible damages that may be incurred.


MENORAH GARDENS: Claims Desecration Suit Does Not Warrant Class Status
----------------------------------------------------------------------
Menorah Gardens & Funeral Chapels will argue in court this week that
space problems at the two cemeteries in Broward and West Palm Beach
affected a limited number of graves and do not warrant a class action,
The Miami Herald reports.

Attorneys for four families who accuse the Company of overselling plots
and digging up bodies to make room for new graves, will try to convince
a Broward judge that thousands more plaintiffs should be allowed to
join their lawsuit.

Broward Circuit Judge J. Leonard Fleet, will preside over a two-day
hearing, starting Wednesday to decide whether the case can become a
class action, enabling at least 1,400 more plaintiffs to join.

"This is really the first time that Service Corp. International ((SCI)
- the parent company - will present factual evidence concerning their
position in this case," said Donald Mathis, SCI spokesman.  "We will
give the judge a better understanding of exactly what is out there."  
While Mr. Mathis said the company conducted a ground-penetrating radar
study that reveals the space limitations at the West Palm Beach
cemetery, he did not say how many graves were affected.

Plaintiffs' attorneys say thousands of graves were affected.  The
families' attorneys have agreed to represent another 1,400 people who
want to break their plot contracts with the Company, fearing their
relatives' plots were mishandled.  Ervin Gonzalez, an attorney for a
number of families who sued the Company last December after the Florida
Attorney General's Office launched an investigation into the Company's
practices, says there is evidence that people were buried in the wrong
graves - there was insufficient space to bury families that bought
group plots, some vaults were cracked or stacked and there were several
instances of digging out remains and tossing them into the woods to
make room for new burials.

Donald Mathis, SCI's spokesman says, "There are conflicting depositions
of who was there and what actually happened."


METAWAVE COMMUNICATIONS: Confronting Securities Suit in New York
----------------------------------------------------------------
Metawave Communications, Inc. faces a securities class action filed in
the United States District Court for the Southern District of New York
against it and certain of its officers and directors as well as against
the underwriters who handled the Company's April 26, 2000 initial
public offering of common stock.

The suit, filed on behalf of persons who purchased the Company's common
stock during the time period beginning on April 26, 2000 and ending on
December 6, 2000, alleges violations of the Securities Act of 1933 and
the Securities Exchange Act of 1934 primarily based on the assertion
that there was undisclosed compensation received by the Company's
underwriters in connection with the Company's initial public offering.

The Company intends to vigorously defend against these complaints.  The
results of litigation proceedings are inherently unpredictable,
however, and the Company is unable to provide assurance regarding the
outcome of these complaints or possible damages that may be incurred.


MICHIGAN: Lawsuit Filed Over Illegal Mental Health Patient Releases
-------------------------------------------------------------------
One mental health patient died and four others disappeared after being
illegally transferred from Northville Psychiatric Hospital and into the
community without treatment plans, a lawsuit alleges, according to a
report by the Detroit Free Press.

Michigan Protection & Advocacy Services, Inc. (MPAS), an advocacy group
for disabled people, recently filed a class action in Ingham County
Circuit Court, against James Haveman Jr., director of the Michigan
Department of Community Health, and Patricia Kukula, interim executive
director of Detroit-Wayne Community Mental Health Agency.

The lawsuit seeks to have the courts appoint a person to force the
state and county to follow the law and put proper plans in place before
releasing any more patients.  It also wants the state and county to
find the patients already released, and set up treatment plans for them

The lawsuit alleges that the state and Wayne County violated Michigan
law by transferring patients out of Northville, a state psychiatric
hospital scheduled to close in two years, without treatment plans.  As
a result, patients were placed in dangerous situations by going places
not suited to their needs.  

Scott Walker, a spokesman for the state health department, said he
could not comment on the lawsuit because he has not seen it, but he
said the state requires treatment plans.

At least one man has died due to improper planning.  Between August 13
and August 21, providers told Michigan Protection & Advocacy Services
(MPAS) they could not find four patients, according to the lawsuit.  
"To simply jettison patients from the hospital with no proper planning
is not only in violation of the law, it is also dangerous," said
Gabrielle Frampton, an attorney for MPAS.   

Patients are supposed to be able to participate in planning their
treatments and state law requires a discharge plan for treatment after
a patient is released to ensure that a patient's medical and physical
needs are met by the new provider.  According to the lawsuit, a memo
from the state's director of medical services, Dr. John Board Jr.,
dated July 2, this is not what is happening.

For, example, records indicate a patient was transferred from
Northville Psychiatric, without a treatment plan, to a Transition Home
that was not prepared for him.  Records also indicate the patient
required one-on-one supervision while eating and could eat only pureed
food.  He ingested a significant amount of whole food and had trouble
breathing.  He was sent to a hospital where a three-hour procedure
unsuccessfully attempted to dislodge the food from his airway.  He died
- no medical records were reviewed and Metro Emergency Services, which
runs the home to which he was sent reported that he died of natural
causes.

"For them to investigate into the death . and to find nothing is
appalling," said Yvonne Fleener, director of advocacy services at MPAS


NATIONAL SECURITIES: Sued Over Securities Placement In Fastpoint
----------------------------------------------------------------
National Securities Corporation faces a class action filed in June 2002
relating to a series of private placements of securities in Fastpoint
Communications, Inc. in the Superior Court for the State of California
for the County of San Diego.

No specific amount of damages has been sought against the Company in
the complaint.  The Company's time to answer has not yet expired.  The
Company believes it has meritorious defenses and intends to vigorously
contest class certification and defend this action, although the
ultimate outcome of the matter cannot be determined at this time.


NATIONWIDE FINANCIAL: OH Court Refuses To Add New Plaintiffs To Suit
--------------------------------------------------------------------
The Ohio State Court refused to grant the motion seeking to add more
plaintiffs to the class action filed against Nationwide Financial
Services, Inc., relating to the sale of deferred annuity products for
use as investments in tax-deferred contributory retirement plans.

The suit was initially filed in October 1998 against the Company and
its subsidiaries Nationwide Life Insurance Company and Nationwide Life
and Annuity Insurance Company.  In May 1999, the complaint was amended
to, among other things, add Marcus Shore as a second plaintiff.

The amended complaint is brought as a class action on behalf of all
persons who purchased individual deferred annuity contracts or
participated in group annuity contracts sold by the Company and the
other named Company affiliates which were used to fund certain tax-
deferred retirement plans.

In June 1999, the Company and the other named defendants filed a motion
to dismiss the amended complaint, which the court later denied.  On
January 25, 2002, the plaintiffs filed a motion for leave to amend
their complaint to add three new named plaintiffs.

On February 9, 2002, the plaintiffs filed a motion for class
certification, which has not been granted.  The Company is opposing
this motion.  That same day, Marcus Shore withdrew as a named plaintiff
in the lawsuit.  

On April 16, 2002, the Company filed a motion for summary judgment on
the individual claims of plaintiff Mercedes Castillo, but the court
denied this.  The court also denied plaintiffs' motion to add new
persons as named plaintiffs, so the action is now proceeding with
Mercedes Castillo as the only named plaintiff.

The Company intends to defend this lawsuit vigorously.


NATIONWIDE FINANCIAL: CT Court Hears Arguments For Dismissal of Suit
--------------------------------------------------------------------
The United States District Court in Connecticut heard arguments on
Nationwide Financial Services, Inc. motion to dismiss the class action
pending against it and its affiliate, Nationwide Life Insurance
Company.

The plaintiffs seek to represent a class of retirement plans that
purchased variable annuities from Nationwide Life Insurance Company to
fund qualified Employee Retirement Income Security Act (ERISA)
retirement plans.

The amended complaint alleges that:

     (1) the retirement plans purchased variable annuity contracts from
         the Company that allowed plan participants to invest in funds
         that were offered by separate mutual fund companies;

     (2) the Company was a fiduciary under ERISA and that the Company
         breached its fiduciary duty when it accepted certain fees from
         the mutual fund companies that purportedly were never
         disclosed by the Company; and

     (3) the Company violated ERISA by replacing many of the funds
         originally included in the plaintiffs' annuities with
         "inferior" funds because the new funds purportedly paid higher
         fees to the Company.


On November 15, 2001, the Company filed a motion to dismiss the amended
complaint, which has not been decided.  On December 3, 2001, the
plaintiffs filed a motion for class certification.  The court heard
oral argument on the motion to dismiss on August 6, 2002.  The class
has not been certified.

The Company intends to defend this lawsuit vigorously.


PALM INC.: Consumers Sue Over Color-Display Error In Hand-Held Device
---------------------------------------------------------------------
Palm, Inc. faces a consumer class action after it acknowledged it
overstated the color-display features of its m130 hand-held device, The
Wall Street Journal reports.  The suit is pending in the California
Superior Court in Santa Clara County, accusing the Company of "unfair
competition, and fraudulent, unfair, deceptive advertising."

The lawsuit follows an apology to customers from the Company, the maker
of personal digital assistants, which came last week when the Company
discovered the m130 device supports about 58,621 color combinations -
not the "more than 65,000 colors" that it had advertised since the
product came out in March.

"The company is working on a plan to compensate customers," said Palm
spokeswoman Marlene Somsak.  However, Ms. Somsak declined to say
whether refunds were being considered.  Replacements, she said are not
part of the plan, since the product is not defective.

Ms. Somsak did say that the Company will "aggressively fight" the suit.  
The lawsuit was filed by the law firm of Sheller Ludwig & Badey on
behalf of Yansu Ouyang of Castro Valley, California, Jonathan Lipner of
Lafayette Hill, Pennsylvania, and other m130 customers.


RAYOVAC CORPORATION: Faces Several Securities Fraud Suits in W.D. WI
--------------------------------------------------------------------
Rayovac Corporation faces several securities class actions pending in
the United States District Court for the Western District of Wisconsin
against the Company and:

     (1) Kenneth V. Biller,

     (2) Kent J. Hussey,

     (3) David A. Jones,

     (4) Scott A. Schoen,

     (5) Stephen P. Shanesy,

     (6) Thomas R. Shepard,

     (7) Randall J. Steward,

     (8) Warren C. Smith, Jr., and

     (9) Merrell Tomlin

The suits uniformly allege that the defendants violated Sections 11,
12(a)(2) and 15 of the Securities Act of 1933 and Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder.

The complaint alleges that defendants made various false and misleading
statements which had the alleged effect of artificially inflating the
price of Company stock during the period from April 26, 2001 until
September 19, 2001.  

The Company and the individual defendants have not yet answered these
complaints, but they intend to deny all material allegations and
vigorously defend themselves in these actions.


SPANISH BROADCASTING: Asks NY Court To Dismiss Securities Fraud Suit
--------------------------------------------------------------------
Spanish Broadcasting System, Inc. filed a motion to dismiss the
securities class action pending in the United States District Court for
the Southern District of New York on behalf of purchasers who acquired
shares of the Company's Class A common stock pursuant to the
registration statement and prospectus relating to its initial public
offering which closed on November 2, 1999.

The lawsuit was filed against the Company, eight underwriters of the
IPO, two members of our senior management team, one of which is our
Chairman of the Board of Directors, and an additional director.  The
claims being made under the complaint are similar to claims currently
being made under hundreds of class actions filed against companies with
recent initial public offerings and their underwriters.

The suit alleges violations of the federal securities laws,
specifically that the prospectus contained materially false and
misleading statements based on alleged misstatements and/or omissions
of material facts relating to underwriting commissions.  The complaint
also alleges Rule 10b-5 fraud violations by the underwriters, but not
by the Company or the individually named defendants.

Motions to dismiss the complaint have been filed and discovery has been
stayed pending decision on the motions to dismiss.


SUNTERRA CORPORATION: Plaintiffs File Amended Securities Suit in FL
-------------------------------------------------------------------
Plaintiffs in the securities class action pending against Sunterra
Corporation filed a second consolidated amended securities class action
in the United States District Court for the Middle District of Florida.  

The suit was originally filed in January 2000 against the Company and
certain of its directors, officers and former officers, alleging
violations of federal securities laws on behalf of persons who
purchased the Company's common stock from October 4, 1998, through
January 19, 2000, or from October 6, 1998, through January 19, 2000,
and seeks recovery of unspecified damages.

Following the filing of the Chapter 11 cases by the Company, the suit
was automatically stayed against the Company pursuant to Bankruptcy
Code Section 362, according to an earlier Class Action Reporter story.  
Subsequent to the filing of the bankruptcy petition, the plaintiffs
filed an amended complaint, which excluded the Company, as any actions
had been stayed as a result of the petition filing.  The lawsuit was
dismissed in March 2002 without prejudice to the plaintiffs.

On July 3, 2002 the plaintiffs filed a second consolidated amended
class action complaint with the Court.  The Company was not named as a
defendant in this amended complaint.  The action is currently pending
in the court.


TODSON INC.: Voluntarily Recalls 10,000 Floor Pumps For Injury Hazard
---------------------------------------------------------------------
Todson, Inc. is cooperating with the US Consumer Product Safety
Commission by is voluntarily recalling about 10,000 floor pumps, which
are used for bicycle tires.  The pressure gauge lens can separate from
the pump and strike a consumer, causing injury.  The Company has
received one report of a pressure gauge lens detaching and striking a
consumer, who suffered an eye injury.
        
The recalled Topeak Joe Blow Comp Floor Pumps are black (with gray or
silver trim) and stand about 26 inches tall.  The plastic pumps have
the following date codes, which are located under the pressure gauge -
200003 through 200012 and 200101 through 200108.  The words "Made in
Taiwan" and "Joe Blow COMP" are printed on the side of the pump.
        
Independent bicycle retailers nationwide sold these pumps between
March 2000 and August 2001 for about $40.  
        
For more details, contact the Company by Phone: 800-250-3068 or visit
the firm's Website: http://www.Topeak.com.


VIANT CORPORATION: Asks NY Court To Dismiss Amended Securities Suit
-------------------------------------------------------------------
Viant Corporation asked the United States District Court, Southern
District of New York to dismiss the amended consolidated securities
suit pending against it, certain underwriters involved in its initial
public offering, and certain of its current and former officers and
directors.

The consolidated suit alleges, among other things, violations of the
Securities Act of 1933 and the Securities Exchange Act of 1934
involving undisclosed compensation to the underwriters, and improper
practices by the underwriters and seek unspecified damages.

Similar complaints were filed in the same court against numerous public
companies that conducted initial public offerings of their common stock
since the mid-1990s.  All of these lawsuits were consolidated for
pretrial purposes before Judge Shira Scheindlin of the United States
District Court for the Southern District of New York.  

Defendants in these cases have filed omnibus motions to dismiss the
suits.  The Company denies the allegations against it and intends to
defend itself vigorously.


WALT DISNEY: $1B in Royalties At Stake In Winnie The Pooh Case
--------------------------------------------------------------
The Walt Disney Co. could be forced to pay up to $1 billion in
royalties plus punitive damages to the family of Stephen Slesinger if
Disney does not honor an agreement with the family.  To top this off,
the Company's shareholders also recently filed a class action,
AFX News reports.

The class action alleges that the Company broke rules by failing to
make public the details and the potential fallout surrounding the legal
battle.  The legal battle - the lawsuit with the Slesinger family -
claims that the Company owes the family between $500 million to $1
billion.  The family also is seeking punitive damages.

The family's suit is expected to go to trial in March, alleges "fraud,
the destruction of documents, gross underpayment of royalty fees on
merchandising over the past 20 years and failure to pay royalties on
video sales, computer software, DVDs and other items," according to
family representatives.

The family's lawyer, Bert Fields, said that the Company's admission
that it could lose hundreds of millions of dollars in damages and
future royalties should the royalty agreement between the family and
Disney be terminated, is an underestimate.   Mr. Fields cited some
industry experts as believing "Pooh" accounts for up to a quarter of
the media giant's annual sales, which last year reported to be $25.256
billion.

Mr. Slesinger helped A.A. Milne expand the "Winnie the Pooh" character
beyond the author's books and bought US and Canadian television, radio,
merchandising, new techology and other trade and future rights from Mr.
Milne in 1930.

Under an agreement made between Mr. Slesinger's widow and the Company
in 1961, the Company was to pay the Slesinger family four percent of
all gross revenue for "Pooh" and related characters, the family's
representatives contend.

                         Asbestos Alert

FEDERAL-MOGUL CORP.: Increases Asbestos Costs Estimate to $1.6 Billion
----------------------------------------------------------------------
Auto parts maker Federal-Mogul Corp. says it increased its estimate for
asbestos-related liability for all of its subsidiaries and businesses
to $1.6 billion at March 31, of which $712.6 million may be recovered
from its insurers.

The Detroit, Michigan-based company and its United States subsidiaires
have filed a voluntary petition for Chapter 11 bankruptcy on Oct. 1,
2001, citing the overwhelming financial burden of asbestos claims as
reason for seeking protection. The company's United Kingdom
subsidiaries had also filed jointly for bankruptcy protection.

COMPANY PROFILE

Federal-Mogul Corp. (OTC: FDML)
26555 Northwestern Highway
Southfield, MI 48034    
Phone: 248-354-7700
Fax: 248-354-8950
Web site: http://www.Federal-Mogul.com

Employees                       : 49,000
Revenue                         : $1,346,100,000
Net Income                      : ($25,600,000)
Assets                          : $8,993,800,000
Liabilities                     : $7,309,800,000
Estimated Asbestos Liabilities  : $1,547,300,000
Insurance Recoveries            : $712,600,000

(For the quarter ended March 31, 2002)

Business Description: Federal-Mogul Corp. is a global supplier of
automotive components and sub- systems serving the world's original
equipment manufacturers and the aftermarket. The company utilizes its
engineering and materials expertise, proprietary technology,
manufacturing skill, distribution flexibility and marketing power to
deliver products, brands and services of value to its customers.
Federal-Mogul is focused on the globalization of its teams, products
and processes to bring greater opportunities for its customers and
employees, and value to its constituents. Headquartered in Southfield,
Michigan, Federal-Mogul was founded in Detroit in 1899 and today
employs 49,000 people in 24 countries.


OWENS CORNING: Deadline to Draft Reorganization Plan Set For August 30
----------------------------------------------------------------------
Owens Corning Corp., the world's largest manufacturer of fiberglass
insulation, says it has been granted by the bankruptcy court an
extension of time to file a plan of reorganization until Aug. 30 and to
solicit acceptances of the plan until Oct. 31. The company filed for
Chapter 11 bankruptcy on Oct. 5, 2000, because of increasing financial
demands related to resolving its asbestos-liability claims.

It expects to formulate a reorganization plan that contemplates the
creation of a trust fund that will release the company from asbestos
claims and assume and satisfy asbestos payments that have been
estimated to go as high as $5 billion. From 1952 to 1972 Owens Corning
produced an asbestos-containing high-temperature pipe coating called
Kaylo.

Before the bankruptcy filing, the company implemented a National
Settlement Program to resolve personal injury asbestos claims through
settlement agreements with individual plaintiffs' law firms. The number
of law firms participating in the NSP grew from 50 when the program
began to 120 when the company filed for bankruptcy. Each of them agreed
to a long-term settlement agreement extending through at least 2008.

Owens Corning received 18,000 asbestos personal injury claims in 2000,
32,000 in 1999 and 69,000 in 1998.

As of Oct. 5, 2000, the NSP covered approximately 240,000 initial
claims, of which 148,000 had qualified for final settlement at an
average cost per claim of approximately $9,000. About 88,000 of them
had either been paid in full or resolved and 60,000 were unpaid in
whole or in part. The remaining balance payable under the agreements
was about $539 million.

The company also has 36,000 asbestos personal injury claims pending
outside the NSP.  

An escrow account has been established to pay for claims that had
qualified for payments under the NSP. At March 31, 2000, there was $106
million deposited into that account that had not been distributed to
qualified claimants.

COMPANY PROFILE

Owens Corning (NYSE: OWC)
1 Owens Corning Parkway
Toledo, OH 43659    
Phone: 419-248-8000
Fax: 419-248-5337
Toll Free: 800-GET-PINK
Web site: http://www.owenscorning.com

Employees                       : 19,000
Revenue                         : $4,762,000,000
Net Income                      : $39,000,000
Assets                          : $7,041,000,000
Liabilities                     : $6,804,000,000
Estimated Asbestos Liabilities  : $5,000,000,000

(For the year ended December 31, 2001)

Business Description: Owens Corning serves consumers and industrial
customers with building materials systems and composites systems. In
2001, the Building Materials Systems segment accounted for
approximately 80% of the company's total sales, while Composite
Solutions accounted for the remainder. The products and systems
provided by Owens Corning's Building Materials Systems segment are used
in residential remodeling and repair, commercial improvement, new
residential and commercial construction, as well as other related
markets. The products and systems offered by the Company's Composite
Solutions segment are used in end use markets, such as building
construction, automotive, telecommunications, marine, aerospace,
energy, appliance, packaging and electronics. Many of Owens Corning's
products are marketed under registered trademarks, including Propink,
Advantex, Miravista and/or the color Pink.


PPG INDUSTRIES: Settles Several Asbestos Liabilities For US$2.7 Billion
-----------------------------------------------------------------------
Chemical and paint maker PPG Industries says it entered into a
settlement agreement with asbestos claimants and insurers for its
Pittsburgh Corning affiliate under which it will turn over $2.7 billion
over a 21-year period to a trust that will assume asbestos liabilities
in exchange for release of the company, according to press reports.

The Company, which owns a 50 percent stake at Pittsburgh Corning, will
contribute $500 million to cover its share of the cost of one of the
largest settlements in US history, while a group of more than 30
insurers will pay the rest.  

Corning Inc., which owns the remaining half of Pittsburgh Corning, says
it will not take part in the settlement, Reuters reports. Corning is
itself facing 14,000 asbestos cases, which it says it does not plan to
settle.

The settlement agreement will be incorporated in a reorganization plan
for Pittsburgh Corning, which filed for Chapter 11 bankruptcy in April
2000. It will become effective 30 days after the reorganization plan is
approved and is no longer subject to appeal.

Until it is approved by the bankruptcy court, which could take a year
or more, no payments are required, the Associated Press reports. After
that, PPG will issue policy releases and credits against policy limits
to participating insurers in exchange for their contributions to the
trust fund.

From 1962-1972, Pittsburgh Corning manufactured pipe insulation
containing asbestos. Documents in its bankruptcy filing show 435,000
asbestos-related claims against the company.

COMPANY PROFILE

PPG Industries, Inc. (NYSE: PPG)
1 PPG Place
Pittsburgh, PA 15272
Phone: 412-434-3131
Fax: 412-434-2448
Web site: http://www.ppg.com

Employees                         : 34,900
Revenue                           : $1,875,000,000
Income                            : $34,000,000
Assets                            : $8,487,000,000
Liabilities                       : $5,322,000
No. of Asbestos Cases             : 116,000

(For the quarter ended March 31, 2002)

Business Description: PPG Industries Inc. produces protective and
decorative coatings, flat and fabricated glass, continuous-strand
fiberglass products and chlor-alkali and specialty chemicals. The
company is comprised of three basic business segments: coatings,
including automotive original, refinish, industrial, aerospace,
packaging and architectural coatings; glass, including flat glass,
automotive original and replacement glass, as well as continuous-strand
fiberglass, and chemicals, including chlor-alkali and specialty
chemicals.


USG CORPORATION: Asbestos Costs Projected To Soar to $1.3B in 2003
------------------------------------------------------------------
Building materials maker USG Corporation, one of several large
companies that have filed for Chapter 11 bankruptcy to manage growing
asbestos litigation costs, estimates probable liabilities its U.S.
Gypsum unit could face for cases pending at yearend 2000 and expected
to be filed through 2003 may reach a high of $1.3 billion.

The Chicago, Illinois-based company filed for Chapter 11 in June 2001
to resolve asbestos claims in a Plan of Reorganization that possibly
will provide for the creation of a trust fund that will answer for
pending and future claims. Similar Plans have been confirmed in Chapter
11 cases of other companies involved in asbestos-related litigation.

The company has asked the bankruptcy court to extend the time during
which it alone may file a Chapter 11 Plan through Nov. 1. Already, it
suspects it needs even more time to form the Plan.

Since 1994, US Gypsum has been named in more than 250,000 asbestos-
related personal injury claims and made cash payments of approximately
$575 million (before insurance recoveries) to manage and resolve
asbestos litigation.  Between January and June 2001, it received more
than 26,000 new claims.  On a cash basis, US Gypsum's asbestos-related
personal injury costs rose from $30 million in 1997 to $162 million in
2000 and could have exceeded $275 million throughout 2001 if it did not
file for bankruptcy.

In the fourth quarter of 2000, US Gypsum recorded a non-cash, pretax
provision of $850 million, increasing its total accrued reserve for
asbestos claims to $1.2 billion million.

COMPANY PROFILE

USG Corporation (NYSE: USG)
125 S. Franklin
Chicago, IL 60680-4678
Phone: 312-606-4000
Fax: 312-606-4093
Web site: http://www.usg.com

Employees                  : 14,300
Revenue                    : $829,000,000
Net Income                 : $26,000,000
Assets                     : $3,523,000,000
Liabilities                : $2,650,000,000
Asbestos reserve           : $1,061,000,000

(For the quarter ended March 31, 2002)

Business Description: USG Corporation is a manufacturer and distributor
of building materials producing a wide range of products for use in new
residential, new nonresidential, and repair and remodel construction,
as well as products used in certain industrial processes. The company's
operations are organized into three operating segments: North American
Gypsum, Worldwide Ceilings and Building Products Distribution. On June
25, 2001, the parent company of the company and 10 of its United States
subsidiaries filed voluntary petitions for reorganization under Chapter
11 of the United States Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware. These cases do not include any of
the company's non-United States subsidiaries.

                    New Securities Fraud Cases

AOL TIME: Faruqi & Faruqi Commences Securities Fraud Suit in S.D. NY
--------------------------------------------------------------------
Faruqi & Faruqi LLP initiated a securities class action in the United
States District Court for the Southern District of New York on behalf
of all behalf of all persons:

     (1) who purchased, converted, exchanged or otherwise acquired the
         publicly traded securities of America Online, Inc. (NYSE:AOL)
         between July 19, 1999 and January 10, 2001; or

     (2) all persons who purchased, converted, exchanged or otherwise
         acquired the publicly traded securities of AOL Time Warner,
         Inc. between January 11, 2001 and July 17, 2002, inclusive.

The complaint charges defendants with violations of federal securities
laws by, among other things, issuing a series of materially false and
misleading press releases concerning AOL's financial results and
business prospects.

Specifically, the complaint alleges that, during the class period,
defendants misrepresented to the public:

     (i) the true nature and amount of revenues derived from online
         advertising (which defendants overstated in contravention of
         Generally Accepted Accounting Principles); and

    (ii) the synergies from, and financial effects of, the merger with
         Time Warner.

As disclosed by the Washington Post on July 18, 2002, and as detailed
in the complaint, AOL inflated its publicly-reported on-line
advertising revenues through a variety of accounting mechanisms that
transformed other transactions (such as legal settlements, barter
transactions, one-time penalty charges, and revenues in fact destined
for other companies) into purported on-line advertising revenue earned
by AOL. As a result, the price of AOL and AOL Time Warner securities
were artificially inflated throughout the class period.

For more details, contact Anthony Vozzolo by Mail: 320 East 39th
Street, New York, NY 10016 by Phone: 877-247-4292 or 212-983-9330 by E-
mail: Avozzolo@faruqilaw.com or visit the firm's Website:
http://www.faruqilaw.com


CHARTER COMMUNICATIONS: Cohen Milstein Lodges Securities Suit in DC
-------------------------------------------------------------------
Cohen, Milstein, Hausfeld & Toll, PLLC initiated a securities class
action against Charter Communications, Inc. and certain of its officers
and directors (Nasdaq:CHTR) in the United States District Court for the
District of Columbia, on behalf of all persons who purchased the
Company's securities between November 9, 1999 and July 17, 2002,
inclusive.

The suit charges the Company and certain of its officers and directors
with violations of federal securities laws.  Among other things,
plaintiff claims that defendants' material omissions and the
dissemination of materially false and misleading statements regarding
the nature of the Company's revenue and earnings caused the Company's
stock price to become artificially inflated, inflicting damages on
investors.

The suit alleges that defendants overstated Company's revenue, failed
to appropriately account for installation costs and artificially
inflated the number of subscribers for the Company's basic cable
services.

On July 18, 2002, when a Merrill Lynch analyst expressed concerns about
potentially misleading accounting practices, Company stock fell more
than 13%.  Additionally, a subsequent article in Forbes discusses a
Credit Suisse First Boston report that further amplifies these concerns
and describes how the Company handles the impact of "churn" (labor and
advertising costs) on the Company's balance sheet, by improperly
capitalizing approximately 30% of its installation labor costs over an
extended time period.

For more details, contact Daniel S. Sommers or Gail Regina by Mail:
1100 New York Avenue, NW, Suite 500 - West Tower, Washington, DC 20005
by Phone: 888-240-0775 or 202-408-4600 by E-mail: dsommers@cmht.com or
gregina@cmht.com or visit the firm's Website: http://www.cmht.com


CRYOLIFE INC.: Berger & Montague Commences Securities Suit in N.D. GA
---------------------------------------------------------------------
Berger & Montague, PC initiated a securities class action against
CryoLife, Inc. (NYSE: CRY) and certain of its principal officers and
directors in the United States District Court for the Northern District
of Georgia on behalf of all persons or entities who purchased the
Company's securities between April 2, 2001 and August 14, 2002.

The complaint alleges that defendants violated Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder by the Securities and Exchange Commission by issuing
materially false and misleading statements throughout the Class Period
regarding quality control problems in the Company's processing of human
tissues and heart valves that had the effect of artificially inflating
the market price of Company securities.

The Company's class period assurances to the investing public that
patient safety was of paramount concern to it and that the Company
complied with applicable governmental processing and quality
regulations were knowingly false when made.  The Company has
demonstrated a pattern of nondisclosure or severe reckless disregard
with respect to its disclosures to shareholders and regulatory edict.

Despite having been put on notice in 2001 that the Centers for Disease
Control (CDC) was concerned about infections from tissue implants
obtained from the Company and despite having been notified at least by
March 22, 2002 that at least one, if not two, patients in whom the
Company processed heart valves had been implanted had developed fungal
endocarditis, the Company failed to correct its false assurances of
quality control and failed to disclose that the Company was being
investigated by the CDC and the US Food & Drug Administration (FDA) for
violation of quality control regulations.

In fact, on March 29, 2002, no mention of these problems was made at
the annual shareholders' meeting.  After rumors began to surface in
June 2002, the Company revealed to the investing public the fact that
the Company had received a warning letter from the FDA citing material
violations of FDA safety regulations.

In an attempt to downplay the warning letter's significance and to
assure investors that the Company would react swiftly to any discovery
of areas in need of improvement, the Company falsely assured its
investors that it had never before received such a warning.  On June
24, 2002, the Company also denied that there was any evidence of fungal
infection on either heart valve.

The CDC disagreed, however, and called the Company on July 3, 2002 to
confirm that the Company had received a letter in March 2002 showing
that signs of infection had been confirmed.  Then on July 5, 2002, a
day on which the stock markets closed at 1:00 p.m., the Company issued
a press release admitting that it provided an infected heart valve to a
California patient, which led to a frequently fatal fungal infection
and removal of the valve.

On July 24, 2002, the Company issued a press release describing a
conference call on that date stating that it had "responded" to the
observations in the FDA warning letter and implemented
"recommendations" in that letter.  That press release was materially
misleading because as the FDA stated, in an August 14, 2002 press
release, the Company had not corrected its procedures and failed to
implement many of the procedures it did adopt.

As a result on August 13, 2002 the FDA ordered the Company to recall
and withhold from the market all tissue processed after October 3,
2001.  Thereafter, the FDA recommended that doctors not use Company
heart valves.

The Company also misrepresented its 2001 income and earnings during the
class period, in violation of generally accepted accounting principles
(GAAP), overstating both income and earnings per share by approximately
20%, requiring a restatement of its reported financial results for
2001.

The market's reaction to the Company's belated disclosures was swift
and severe.  Following these disclosures, the market price of
CryoLife's common stock dropped from a high of almost $45 per share
during the class period and from $23.66 per share just before the
disclosure to as low as $2.03 per share when the true facts became
known.

For more details, contact Sherrie R. Savett, Carole A. Broderick,
Barbara A. Podell or Kimberly A. Walker by Mail: 1622 Locust Street,
Philadelphia, PA 19103 by Phone: 888-891-2289 or 215-875-3000 by Fax:
215-875-5715 by E-mail: InvestorProtect@bm.net or visit the firm's
Website: http://www.bergermontague.com


EL PASO: Chitwood & Harley Commences Securities Fraud Suit in S.D. TX
---------------------------------------------------------------------
Chitwood & Harley initiated a securities class action in the United
States District Court for the Southern District of Texas, on behalf of
purchasers of the common stock of El Paso Corp. (NYSE:EP) between
January 29, 2001 and May 29, 2002, inclusive, which seeks to pursue
remedies under the Securities Exchange Act of 1934 (the "Exchange Act")
and the Securities Act of 1933.  The class also includes holders of
Coastal Corp. securities who acquired the Company's common stock as a
result of the Company's acquisition of Coastal.

The suit alleges that the Company and certain of its officers and
directors, including William Wise, its Chairman, President and Chief
Executive Officer, and H. Brent Austin, its Chief Financial Officer,
violated the federal securities laws by issuing a series of materially
false and misleading statements to the market, which had the effect of
artificially inflating the market price of Company securities.

The suit further alleges that the Company manipulated both energy
prices and accounting regulations in order to report materially
inflated revenues from its energy-trading operations and to hide
billions of dollars of debt in off-balance sheet partnerships.

On May 29, 2002, the last day of the class period, the Company
announced a "strategic repositioning" and downsizing plan to limit its
investment in and exposure to energy trading.  As a result of the news,
Company shares fell 23%.

One week later, on June 7, 2002, the Company announced that it received
an informal inquiry from the Securities and Exchange Commission staff
regarding the issue of "round-trip" trades.

For more details, contact Nikole Davenport by Phone: 2900 Promenade II,
1230 Peachtree Street, NE, Atlanta GA 30309 by Phone: 888-873-3999
(toll-free) by E-mail: nmd@classlaw.com or visit the Website:
http://www.classlaw.com.  


HOUSEHOLD INTERNATIONAL: Bernstein Liebhard Files Securities Suit in IL
-----------------------------------------------------------------------
Bernstein Liebhard & Lifshitz LLP initiated a securities class action
on behalf of all persons who purchased or acquired Household
International, Inc. (NYSE: HI) securities between October 23, 1997 and
August 14, 2002, inclusive in the United States District Court for the
Northern District of Illinois.

The complaint charges the Company and certain of its officers and
directors with violations of the Securities Exchange Act of 1934. The
Company is principally a non-operating holding company engaged in three
reportable segments: consumer, credit card services and international.  
The consumer segment includes consumer lending, mortgage services,
retail services and auto finance businesses.  The credit card services
include the domestic MasterCard and Visa credit card business.  The
Company's international segment includes foreign operations in the
United Kingdom and Canada.

The complaint alleges that during the class period, defendants caused
Company shares to trade at artificially inflated levels through the
issuance of false and misleading financial statements by, among other
things, failing to properly amortize the Company's co-branding
agreements, and failing to record its expenses associated with its
marketing initiatives.  In addition, the defendants improperly "re-
aged" the Company's accounts, thereby concealing the Company's actual
delinquency ratios.

For more details, contact Linda Flood by Mail: 10 East 40th Street, New
York, New York 10016 by Phone: 800-217-1522 or 212-779-1414 by E-mail:
HI@bernlieb.com or visit the firm's Website: http://www.bernlieb.com  


INTERPUBLIC GROUP: Bernstein Liebhard Lodges Securities Suit in S.D. NY
-----------------------------------------------------------------------
Bernstein Liebhard & Lifshitz LLP initiated a securities class action
in the United States District Court for the Southern District of New
York on behalf of purchasers of the securities of The Interpublic Group
of Companies, Inc. (NYSE:IPG) between October 28, 1997 and August 13,
2002, inclusive.

The complaint alleges that defendants violated Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations to the
market throughout the class period, thereby artificially inflating the
price of Company securities.

Specifically, the complaint charges that defendants issued numerous
statements and filed quarterly and annual reports with the SEC which
described the Company's increasing net income and financial
performance.

As alleged in the complaint, these statements were materially false and
misleading because they failed to disclose and/or misrepresented the
following adverse facts:

     (1) that, throughout the class period, the Company was overstating
         its net income by failing to expense certain charges which
         should have been expensed;

     (2) that the Company lacked adequate internal controls and was
         therefore unable to ascertain the true financial condition of
         the Company; and

     (3) that as a result, the value of the Company's net income and
         financial results were materially overstated at all relevant
         times.

On August 13, 2002, however, the last day of the class period, the
Company announced, among other things, that it had "identified $68.5
million of charges, principally in Europe, which had not been properly
expensed," which will cause the company to restate its previously
issued financial statements going back to 1997 and prior.

For more details, contact Anthony Vozzolo by Mail: 320 East 39th
Street, New York, NY 10016 by Phone: 877-247-4292 or 212-983-9330 by E-
mail: Avozzolo@faruqilaw.com or visit the firm's Website:
http://www.faruqilaw.com


MERRILL LYNCH: Finkelstein Thompson Lodges Securities Suit in C.D. CA
---------------------------------------------------------------------
Finkelstein, Thompson & Loughran initiated a securities class action
against Merrill Lynch & Co., Inc. and the former head of its Internet
group, Henry Blodget, on behalf of purchasers of CMGI securities
between March 23,1999 and October 6, 2000, inclusive.

The suit, filed in the United States District Court for the Central
District of California, alleges that Merrill Lynch and its well-known
Internet stock analyst Henry Blodget violated the federal securities
laws by knowingly issuing false and misleading analyst reports
regarding CMGI during the class period.

Based on e-mails and other internal Merrill Lynch communications, which
were made public as a result of the investigation conducted by the New
York State Attorney General, the suit alleges that Defendants failed to
disclose a significant conflict of interest between their investment
banking and research departments.

Specifically, the suit alleges that Henry Blodget and other Merrill
Lynch analysts issued very favorable analyst reports regarding CMGI to
the public when they allegedly knew that the positive recommendations
were unwarranted and false.

The suit further alleges that, unbeknownst to the investing public,
Merrill Lynch's buy recommendations and price targets were driven by
its efforts to attract lucrative investment banking business rather
than by the companies' fundamental merits.

For more details, contact Conor R. Crowley or Jessica Whitehurst of
Finkelstein, Thompson & Loughran by Phone: 202-337-8000 or by E-mail:
crc@ftllaw.com or jfw@ftllaw.com or visit the firm's Website:
http://www.ftllaw.com


MERRILL LYNCH: Kaplan Fox Commences Securities Fraud Suit in S.D. NY
--------------------------------------------------------------------
Kaplan Fox & Kilsheimer LLP initiated a securities class action against
Merrill Lynch & Co., Inc., (NYSE: MER) and Henry Blodget, the First
Vice President of Merrill Lynch, in the United States District Court
for the Southern District of New York on behalf of all persons or
entities who purchased or otherwise acquired the common stock of
Merrill Lynch between July 3, 1999 and July 30, 2002, inclusive.

The complaint alleges that defendants violated the federal securities
laws by misrepresenting Merrill Lynch's research analyst business.  
Merrill Lynch touted its research analysts business as being, among
other things, "insightful, objective and decisive."  However, instead
of issuing analyst reports based on legitimate research and analysis of
public companies, the Company issued false analyst reports regarding
various companies and failed to disclose significant, material
information.

The complaint alleges, among other things, that Merrill Lynch's
Internet group issued false analyst reports to obtain investment
banking business for the Company.

Furthermore, the complaint alleges that during the class period Merrill
Lynch made statements regarding Enron and recommended the purchase of
Enron shares while failing to disclose that Merrill Lynch engaged in
bogus transactions with Enron. Merrill issued positive reports about
Enron and entered into these bogus transactions to secure investment
banking business.

Although these transactions may have resulted in huge profits for
Merrill Lynch, the Company was also exposed to substantial risks for
legal liability and faced governmental scrutiny because such
transactions were specifically designed to permit Enron to defraud its
investors by artificially inflating its profits.

As a result of defendants' improper conduct with respect to its analyst
business, Merrill Lynch's common stock traded at artificially inflated
prices throughout the class period. The truth began to be revealed on
April 8, 2002, Merrill Lynch's stock declined materially in value.

For more details, contact Frederic S. Fox or Donald R. Hall by Mail:
805 Third Avenue, 22nd Floor, New York, NY 10022 by Phone: 800-290-1952
by Fax: 212-687-7714 by E-mail: mail@kaplanfox.com or visit the firm's
Website: http://www.kaplanfox.com


MSC INDUSTRIAL: Schiffrin & Barroway Lodges Securities Suit in E.D. NY
----------------------------------------------------------------------
Schiffrin & Barroway, LLP initiated a securities class action in the US
District Court for the Eastern District of New York, alleging that MSC
Industrial Direct Co., Inc. (NYSE:MSM) misled shareholders about its
business and financial condition.

The suit seeks damages for violations of Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 on behalf of all investors who
bought Company securities between November 4, 1999 and August 5, 2002.

The complaint alleges that the New York-based Company issued materially
false and misleading financial statements and press releases concerning
MSM's revenues, income and earnings per share during the class period
in violation of Sections 10(b) and 20(a) of the Securities Exchange Act
of 1934 and Rule 10b-5 promulgated thereunder.

For more details, contact Marc A. Topaz or Stuart L. Berman by Phone:
888-299-7706 (toll free), 610-667-7706 by E-mail: info@sbclasslaw.com
or visit the firm's Website: http://www.sbclasslaw.com


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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., Trenton, New Jersey, and
Beard Group, Inc., Washington, D.C.  Enid Sterling, Aurora Fatima
Antonio and Lyndsey Resnick, Editors.

Copyright 2002.  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-
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Information contained herein is obtained from sources believed to be
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