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               C L A S S   A C T I O N   R E P O R T E R

              Friday, September 20, 2002, Vol. 4, No. 187

                            Headlines


AMERITECH INC.: IL State Court Rejects Settlement For Consumer Suit
ARKANSAS: Judge Agrees To Settlement of Mentally-Ill Inmates Lawsuit
BAYCOL LITIGATION: Bayer Agrees To Settle Several Personal Injury Suits
COLORADO: Denver Police Department Finds Archived Surveillance Files
CONVERGYS: Former TelesensKSCL Employees To Commence Compensation Suit

HUB GROUP: Asks IL Court to Dismiss Consolidated Securities Fraud Suit
HUMPHREY HOSPITALITY: Plaintiffs Fail To File Appeal, Suit Dismissed
INDIAN FUNDS: Judge Holds Interior Secretary In Contempt Over Trust
INTERVOICE-BRITE INC.: TX Court Dismisses Securities Fraud Lawsuit
LUMENIS LTD.: Faces Numerous Securities Fraud Suits Filed in S.D. NY

LUMENIS LTD.: Will Mount Vigorous Defense V. Securities Suit in S.D. NY
MCLEODUSA CORPORATION: Asks Court To Dismiss Securities Fraud Suit
NATIONAL SEMICONDUCTOR: Discovery Proceeds in CA Personal Injury Suit
PEMSTAR INC.: Dealing With Bevy of Securities Suits in MN Court
SPANGLES INC.: Faces Suit For Disabilities Act Violations in KS Court

TOBACCO LITIGATION: Philip Morris Offers $35M To Settle Retailers' Suit
UNITED STATES: Agriculture Dept To Improve Minority Farmers' Programs
US TIMBERLANDS: Faces Shareholder Suit Over Privatization Offer in DE
WHYALLA AIRLINES: Victims' Families Question Cause Of Airplane Crash
WORLD GAMES: Investors To Launch Suit V. Fraudulent Gambling Scheme

                         * Asbestos Alert *

ASBESTOS LITIGATION: Halliburton, Honeywell to Settle Asbestos Claims
ASBESTOS LITIGATION: Resolving Asbestos Claims To Reach $275 Billion
ASBESTOS LITIGATION: Allianz Covers Risk, Puts $750M Into US Unit
AMERICA BILTRITE Faces 535 Pending Asbestos Claims as of June 2002
COOPER INDUSTRIES: Expects Further Liability Costs for Ended Businesses

HONEYWELL INTERNATIONAL: Faces Auto Mechanic Asbestos Injury Lawsuit
ILLINOIS POWER: Faces 34 Asbestos Exposure Related Lawsuits
KAISER ALUMINUM: Maintains Asbestos Liabilities For 10-Year Period
MEADWESTVACO CORP.: Faces Personal Injury Suits Over Asbestos Exposure
METROPOLITAN LIFE: Faces Thousands of Suits Over Asbestos Exposure

MONONGAHELA POWER: Accrues US$1.5M Reserve For Asbestos Litigation
PREMCOR INC.: Faces 20 Personal Injury Claims Over Asbestos Exposure

                      New Securities Fraud Cases

AOL TIME: Marc Henzel Commences Securities Fraud Suit in S.D. New York
BAXTER CORPORATION: Marc Henzel Commences Securities Suit in N.D. IL
BELLSOUTH CORPORATION: Marc Henzel Commences Securities Suit in N.D. GA
CROSS MEDIA: Marc Henzel Commences Securities Fraud Suit in S.D. TX
EL PASO: Marc Henzel Commences Securities Fraud Suit in Texas Court

HEALTHSOUTH CORPORATION: Marc Henzel Commences Securities Suit in AL
INTERPUBLIC GROUP: Marc Henzel Commences Securities Suit in S.D. NY
KING POWER: Milberg Weiss Commences Suit To Enjoin Stock Acquisition
MERRILL LYNCH: Cauley Geller Commences Securities Fraud Suit in S.D. NY
MSC INDUSTRIAL: Marc Henzel Commences Securities Fraud Suit in E.D. NY

PEMSTAR INC.: Marc Henzel Commences Securities Fraud Suit in MN Court
REHABCARE GROUP: Marc Henzel Commences Securities Fraud Suit in E.D. MO
SUPERVALU INC.: Marc Henzel Commences Securities Fraud Suit in MN Court
VIVENDI UNIVERSAL: Marc Henzel Commences Securities Suit in S.D. NY
WALT DISNEY: Marc Henzel Commences Securities Fraud Suit in C.D. CA

                          *********

AMERITECH INC.: IL State Court Rejects Settlement For Consumer Suit
-------------------------------------------------------------------
A Cook County Circuit Court judge rejected a proposed settlement of a
class action against Ameritech's costly voice mail service, agreeing
the Citizens Utility Board's (CUB) contention that the settlement is a
bad deal for consumers.

"This is a major victory for Ameritech's voice mail customers," CUB
Litigation Director Rob Kelter said.  "For far too long, Ameritech has
misled customers about the costly service. Now, thanks to the court's
ruling, voice mail customers have a fighting chance to receive
compensation from the phone giant - and to stop the company's
misleading marketing of the service."

In June, CUB went to court to block the agreement, after it was
announced to consumers in Ameritech bills the month before.  The
proposed settlement would have awarded $971,000 to the attorneys who
filed the lawsuit but would have provided no real compensation to
customers who have been victims of the Company's misleading marketing
of voice mail service.

Under the settlement, victims would receive just one month's free speed
dialing service, priced at $5 a month -- a service most consumers have
available on their phones for free.

Attorneys for the plaintiffs in the case reached the settlement after
Cook County Circuit Court Judge Robert Boharic approved a request from
the Company to dismiss the case.  CUB filed a formal objection to the
settlement, along with the Attorneys General from the five Midwestern
Ameritech states, two of the six law firms that initially filed the
case, and the Federal Trade Commission.

On Wednesday, Judge Boharic agreed with many of CUB's objections and
rejected the settlement.  The ruling means CUB and other parties can
appeal the case to the state appellate court.

The suit, filed in December 1999, sought damages from the Company,
arguing that the phone giant failed to disclose the true cost of voice
mail service to subscribers.

The company advertised the service for just a $4.95 monthly fee,
failing to tell customers they also pay a local phone call charge of
about 5 cents for every message left in their voice mailbox.  Those
extra charges caused phone bills of many voice mail customers to
skyrocket, without any explanation.

In his 16-page ruling, Judge Boharic said the proposed settlement
"gives no financial reward to the customers."  "The provisions for one
month of Speed Dial 30 service seems to be an irrelevant and inadequate
way of compensating the class," he wrote.  "This provision is likely to
benefit Ameritech more than the class and it smacks of a court-
sponsored promotion gimmick."

As part of the settlement, the attorneys also agreed to help the
Company vacate a state appellate court ruling in Ohio that sided with
consumers in a similar voice mail lawsuit. On Wednesday, however, Judge
Boharic said he did not want to be placed in the "awkward position" of
rejecting a ruling from a higher court in Ohio.  He also said the Ohio
ruling could bolster the Illinois case against Ameritech.


ARKANSAS: Judge Agrees To Settlement of Mentally-Ill Inmates Lawsuit
--------------------------------------------------------------------
Arkansas federal judge Stephen Reasoner said that subject to a fairness
hearing, he agrees to a settlement in the class action filed by the
American Civil Liberties Union (ACLU) of Arkansas against the state's
Division of Mental Health Services and its director Richard Hill.

The suit was filed on behalf of Arbunes Terry and her son James M.
Terry, who was in the Sebastian County jail for months without getting
treatment for a psychotic disorder.  Howard Erler of Waldron, who
suffered from a psychotic disorder while held in the Scott County jail,
was later added as a plaintiff, the Southwest Times Record reports.

In the trial conducted last December, Dr. Larry Miller, director of the
State Hospital testified that the hospital needs 140 beds to handle
forensic cases, meaning those in the criminal justice system.  Arkansas
allegedly had the fewest forensic beds of any state and treats far
fewer of all mentally ill than other states based on per 100,000
population.  Many people are in Arkansas jails not because of crimes,
but only because they exhibit strange behavior and there isn't anywhere
else to hold them, the Southwest Times Record states.

Attorneys for the American Civil Liberties Union of Arkansas said after
the hearing that conditions for the mentally ill should begin improving
immediately.  "I think it's going to make an incredible difference,"
said Bettina Brownstein of Little Rock. "I couldn't be more pleased. I
think it's going to make all the difference in the world if, in fact,
the state does what they've promised to do, and I have every reason to
think they will."

The settlement deals with evaluations and treatment of people arrested
but not yet tried.   Court-ordered evaluations must be completed within
30 days. Those ordered for treatment to make them competent to stand
trial must be treated within 48 hours to 45 days, depending on the
severity of the illness.

Dr. Larry Miller, the State Hospital's medical director, said after the
hearing that he believes the hospital can begin meeting the terms of
the settlement for less than $500,000, the Southwest Times Record
states.  He said the hospital in January added 16 beds to its 64-bed
forensic unit, which required less than $100,000 a year to hire nurses
to staff it.


BAYCOL LITIGATION: Bayer Agrees To Settle Several Personal Injury Suits
-----------------------------------------------------------------------
German pharmaceutical company Bayer settled "a small number" of
personal injury suits, relating to the cholesterol drug Baycol,
marketed outside the United States as Lipobay, the Associated Press
reports.

The Company recalled the drug in August 2001 after it was linked to
more than 50 deaths worldwide.  The drug was associated with a rare
toxic muscle-wasting syndrome called rhabdomyolysis.

In filings with the US Securities and Exchange Commission, the Company
said it settled several cases, and intends to settle a few more.  More
than 2,000 lawsuits are still pending, most of them in the United
States.  The Company said it settled the suits without admitting
liability.

Spokesman Michael Diehl declined to tell AP how much Bayer had paid, or
give other details.  He said he had no information about further
settlements.  "We may, on a case-by-case basis, settle additional cases
for reasonable amounts when, in our judgment, settlement is
economically feasible given the risks and costs inherent in
litigation," the Company said.  The Company has repeatedly said the
lawsuits against it are groundless.


COLORADO: Denver Police Department Finds Archived Surveillance Files
--------------------------------------------------------------------
Five detectives have been assigned to comb through documents in the
Denver police department's intelligence bureau after more "spy files"
were found in an old file cabinet, the Associated Press Newswires
reports.

The existence of the police department's surveillance files, the so-
called "spy files," came to light earlier this year after the American
Civil Liberties Union  (ACLU) received copies, revealing that dossiers
were kept on peaceful activists and protest groups.

The ACLU filed a class action against the City over the so-called spy
files.  In fact, the newly-discovered spy files were found by an
officer collecting information for the ACLU lawsuit.

Police Chief Gerry Whitman ordered the search after learning of the
discovery of the surveillance files, the same kind and nature as the
ones that the ACLU had complained about because they targeted peaceful
people engaging in non-criminal behavior.

"I was told everything was put in our computer database and then we
discovered these paper files, three of which we know are not in the
data base," Mr. Whitman said.  "That causes me to wonder, so now we are
going through every piece of paper in the intelligence bureau."

A three-judge panel appointed by Mayor Wellington Webb recommended
destroying the files after letting people named in them review the
documents.  The panel found that the lines between criminal and non-
criminal intelligence files was blurred when all the files were placed
in a computer database in 2000, presumably because the people doing the
entries were still learning the system.

However, the files may be destroyed because they must be kept available
for purposes of discovery in the class action brought by the ACLU.


CONVERGYS: Former TelesensKSCL Employees To Commence Compensation Suit
----------------------------------------------------------------------
Former employees of billing systems company TelesensKSCL are launching
Scotland's largest compensation class action against US firm Convergys
and receivers Deloitte & Touche, the Register reports.  More than 200
workers will launch an GBP8 million lawsuit, after they were laid off
without any redundancy pay in the summer.

The workers allege that they received nothing even though TelesensKSCL
was sold to Convergys for $10m.  They are also claiming unfair
dismissal and sex discrimination under European legislation.

Mike Cicero, ex-employee and spokesman for the Class Action Group, told
the Register, "Not only are we seeking the money that is owed to us, we
are also hoping that by taking this action we force changes in the law
so that this does not happen to anyone else ever again."

TelesensKSCL was placed into receivership in June.  Three days later,
receivers Deloitte & Touche announced that 220 staff would be made
redundant.  Workers were told that they would not be paid their last
month's salary or receive any redundancy payment.  Among those hit were
a number of women on maternity leave, the Register reports.

Soon after the job cuts were announced TelesensKSCL was sold to the
American billings giant Convergys. The case is being investigated by
the Equal Opportunities Commission and the Department of Trade and
Industry and is backed by a number of MPs and MSPs.


HUB GROUP: Asks IL Court to Dismiss Consolidated Securities Fraud Suit
----------------------------------------------------------------------
Hub Group, Inc. asked the United States District Court for the Northern
District of Illinois, Eastern Division to dismiss a consolidated
securities class action filed against it, its officers and former
officers, and its former auditors.

The complaint alleges that the defendants violated Section 10 (b) and
Rule 10b-5 thereunder and section 20 (a) of the Securities Exchange Act
of 1934 by filing or causing to be filed with the Securities and
Exchange Commission periodic reports that contained inaccurate
financial statements.

On July 18, 2002, the Company and its officers and former officers
filed a motion to dismiss the amended complaint in its entirety.  The
Company's former auditors also filed a motion to dismiss the amended
complaint on July 18, 2002.  The plaintiffs have until August 15, 2002
to respond to the motions to dismiss, and the Company and its former
auditors have until August 29, 2002 to file replies in support of their
motions to dismiss.

The Company believes that this suit is without merit and intends to
vigorously defend itself and its officers.  An adverse judgment in this
lawsuit could have a material adverse effect on the Company's financial
position and results of operations.


HUMPHREY HOSPITALITY: Plaintiffs Fail To File Appeal, Suit Dismissed
--------------------------------------------------------------------
Plaintiffs in the securities class action pending against Humphrey
Hospitality Trust, Inc. failed to file an appeal of the United States
District Court for the District of Maryland's decision dismissing the
suit.

The suit, which names as defendants the Company and certain of its
executive officers and directors, was filed on behalf of purchases of
the Company's common stock from November 14,2000 through March 29,2001.

The suit arose from five lawsuits originally initiated from April
through June 2001 in the United States District Court for the Eastern
District of Virginia.  The suits alleged violations of Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
The suits were later transferred and consolidated in Maryland federal
court, an earlier Class Action Reporter story states.

Specifically, the plaintiffs allege that defendants made false and
misleading statements concerning the Company's financial condition and
operations and artificially inflated the market price of the Company's
securities during the class period.  In November 2001, the Company
filed a motion to dismiss the consolidated amended complaint.

On May 7, 2002 the court issued an order granting the Company its
motion to dismiss the suits.  The plaintiffs were given until June
6,2002 to appeal the decision.  The plaintiffs right of appeal has
since expired and the Company now considers this matter closed.


INDIAN FUNDS: Judge Holds Interior Secretary In Contempt Over Trust
------------------------------------------------------------------
A federal judge recently held Interior Secretary Gail Norton and
another Department official in contempt of court for what he termed a
continuing failure to reform the error-prone trust-fund system that
handles more than $300 million a year for individual Indians, The Wall
Street Journal reports.

Judge Royce C. Lamberth indicated that his next action may be to take
over the trust fund by putting it under a court-appointed receiver.  He
asserted that the Department of Interior's reform effort is only
"marginally closer" to its objective than it was three years ago, when
he held Ms. Norton's predecessor, Bruce Babbitt, in contempt.

In a frequently scathing 267-page opinion, Judge Lamberth said that Ms.
Norton had engaged in a series of practices to mislead the court that
he traced back to Mr. Babbitt.  Ms. Norton did not change her course of
behavior until the plaintiffs in the class action moved to cite her for
contempt.

The judge's ruling finds Ms Norton and Neal McCaleb, assistant
secretary for Indian Affairs, in civil contempt.  The move does not
carry criminal penalties, but it requires the government to pay legal
fees for the Indians' lawyers.

In an accompanying order, Judge Lamberth said he will hold a trial over
what accounting system will be used to measure trust-fund losses, a
matter that previously had been left to the Interior Department to
decide.

Robert D. McCallum Jr., an assistant attorney general of the Justice
Department, which is defending Interior, argued that the facts in the
case do not justify contempt against Ms. Norton or Mr. McCaleb.  The
Justice Department, he said, is considering "all of the options for
appeal."

Rep. J.D. Hayworth (R. Ariz.), who is a co-chairman of a congressional
caucas on Indian matters, called the findings "unfair."  "To subject
Secretary Norton to this sort of judicial jawboning is unnecessary," he
said, adding that Ms. Norton was "devoting extraordinary attention" to
the reform effort.

Judge Lamberth's court-appointed monitor had reported at one point that
the information given by Interior Department officials had been
misleading as to the progress they were making on development of a
system of reform.  Actual movement toward reform did not begin to
surface as a hypothetical idea until the threat of contempt also
surfaced.

The Indian trust fund was created in the 1800s by Congress to help
Indians who owned individual plots of land keep track of their income
from grazing leases, mining, lumber harvesting and other outside uses.
Because there were no banks on reservations, the system grew to more
than 300,000 individual accounts.

Since 1996, plaintiff Indians, owners of the individual plots of land,
have been suing for accounting of the royalties that presumably had
been collected for the use of their land and which are supposed to be
kept in the US Treasury.  The plaintiffs allege that thousands of
records are missing, damaged, tampered with or destroyed.

Dennis Gingold, lead attorney for the Indian plaintiffs, said they are
prepared to use a historical accounting system to show that more than
$100 billion in losses and other resultant damage have stemmed from the
system which has been employed to collect - and often not collect - the
Indian plaintiffs' royalties, and record the monies in what the judge
has termed "an error-prone" system.

Earlier, after holding Mr. Babbitt in civil contempt, Judge Lamberth
concluded that he had never seen "more egregious misconduct by the
federal government."  In yesterday's phone-book-size opinion, he
corrected himself.  "The Department of Interior truly has outdone
itself this time."


INTERVOICE-BRITE INC.: TX Court Dismisses Securities Fraud Lawsuit
------------------------------------------------------------------
The United States District Court in Dallas, Texas dismissed the
consolidated securities class action pending against Intervoice-Brite,
Inc., on behalf of purchasers of the Company's common stock during the
period from October 12, 1999 through June 6, 2000.

The suit asserts claims under Sec. 10(b) and 20(a) of the Securities
Exchange Act of 1934 and the Securities and Exchange Commission Rule
10b-5 against the Company as well as certain named current and former
officers and directors of the Company on behalf of the alleged class
members.

The suit asserts that the Company and the named current and former
officers and directors issued false and misleading statements during
the class period concerning the financial condition of the Company, the
results of the Company's merger with Brite and the alleged future
business projections of the Company.  Plaintiffs have asserted that
these alleged statements resulted in artificially inflated stock price,
states an earlier Class Action Reporter story.

The plaintiffs in the case may, if they choose to, file an amended
complaint that complies with applicable federal securities laws.


LUMENIS LTD.: Faces Numerous Securities Fraud Suits Filed in S.D. NY
--------------------------------------------------------------------
Lumenis Ltd. faces several securities class actions pending in the
United States District Court for the Southern District of New York on
behalf of purchasers of Company securities between January 2 and
February 28, 2002.  The suit also names as defendants certain present
and former officers and directors of the Company, including:

     (1) Jacob Frenkel,

     (2) Yacha Sutton,

     (3) Sagi Genger and

     (4) Asif Adil

The complaints generally allege that the defendants violated United
States federal securities laws by issuing materially false and
misleading statements throughout the class period that had the effect
of artificially inflating the market price of the Company's securities.

The complaints allege that throughout the class period, defendants
discounted and disputed marketplace rumors about the Company's
operations even as the Company knew it was being investigated by the
United States Securities and Exchange Commission (SEC) and that its
distributors had been contacted by the SEC.

The Company has been served with a summons and complaint in some but
not all of these actions.  There is currently pending before the Court
a motion by plaintiffs to appoint a lead plaintiff and for approval of
selection of lead counsel.  Upon the disposition of this motion, it is
anticipated that a consolidated complaint will be filed.

The Company's time to respond to the complaints has been extended, and
it is anticipated that, following the appointment of a lead plaintiff
and approval of lead class counsel, and subject to review and
evaluation of any consolidated complaint that is filed, the Company
will file a motion to dismiss for failure to state a claim and failure
to plead fraud with particularity as required by the Private Securities
Litigation Reform Act of 1995 and Rule 9(b) of the Federal Rules of
Civil Procedure.


LUMENIS LTD.: Will Mount Vigorous Defense V. Securities Suit in S.D. NY
-----------------------------------------------------------------------
Lumenis Ltd. faces a securities class action filed in May 2002 in the
United States District Court for the Southern District of New York on
behalf of purchasers of the Company's securities between August 2, 2001
and May 7, 2002.  In addition to the Company, the named defendants
include certain present and former officers and directors of the
Company, including:

     (1) Jacob Frenkel,

     (2) Yacha Sutton,

     (3) Sagi Genger and

     (4) Asif Adil

The complaint alleges that the defendants violated US Federal
securities laws by making a series of material misrepresentations to
the market during the class period regarding the Company's financial
performance, successful execution of its business plan and strong
demand for the Company's products, thereby artificially inflating the
price of Company securities.

The Company has not been served with a summons and complaint in this
action.  The Company believes that all the allegations and claims in
the suits are baseless.


MCLEODUSA CORPORATION: Asks Court To Dismiss Securities Fraud Suit
------------------------------------------------------------------
Attorneys for current and former McLeodUSA Corporation officers are
asking that a securities class action, alleging the Company misled
investors, be thrown out of federal court, Associated Press Newswires
reports.

Several suits, filed after the Company's stock price plunged in 2000
and 2001, were combined into a single lawsuit filed in June, and
expanded to include allegations of accounting irregularities.  The
period covered by the shareholder lawsuit is the 11 months from January
30 to December 3 of 2001, when Company shares lost 98 percent of their
value.  If the lawsuit succeeds in recovering damages on behalf of
investors, it would be limited to people who invested during that
period.

The suit alleges that the officers failed to disclose in a timely
manner that:

     (1) the Company was giving up its plans for a national data
         network;

     (2) it failed to disclose its inability to integrate companies
         it acquired; and

     (3) it issued misstatements about the Company's financial
         flexibility and ability to avoid financial restructuring.


The lawsuit alleges as well that the Company used improper practices
for recognizing revenue that did not comply with accounting standards.

In a 41-page brief filed for the defendants, their attorneys say that
the securities suit largely ignored the nationwide recession and
problems that hit the entire telecommunications sector, disclosures of
investment risk issued by the Company and the bad news the Company
voluntarily disclosed.

The brief also says that the suit bases some of its most crucial claims
on "information and belief" in vague and uncertain terms.  "Under the
governing standards for pleading securities fraud, the complaint is
exceptionally weak," said defendants' attorneys Richard Fry and Kevin
Collins of Cedar Rapids, Iowa, in the brief.

The suit names as defendants:

     (1) Clark McLeod, former Chairman and co-CEO,

     (2) J. Lyle Patrick, former Chief Financial and Accounting
         Officer,

     (3) Stephen Gray, President and

     (4) Christopher A. Davis, Chairman and CEO

The Company filed for bankruptcy protection at the end of January, the
first of a string of telecommunications firms that since have sought
bankruptcy protection.  It emerged from bankruptcy in mid-April,
unburdened of about $3 billion in bond debt, but the value of the
Company's stock continued to decline from $1.53 per share to 38 cents
per share.

Faced with potential delisting from the Nasdaq National Market because
of its stock price, the Company has applied to transfer its listing to
the Nasdaq Small Cap market.


NATIONAL SEMICONDUCTOR: Discovery Proceeds in CA Personal Injury Suit
---------------------------------------------------------------------
Discovery is proceeding in a class action filed against National
Semiconductor Corporation and a number of its suppliers in California
Superior Court.

The Company's former and present employees filed the suit in January
1999, claiming damages for personal injury.  The complaint alleges
employees suffer cancer or cancer risk and/or reproductive harm as a
result of alleged exposure to toxic chemicals while working at the
Company.  Plaintiffs claim to have worked at sites in Santa Clara
and/or in Greenock, Scotland.

In addition, one plaintiff claims to represent a class of children of
Company employees who allegedly sustained developmental harm as a
result of alleged in utero exposure to toxic chemicals while their
mothers worked at the Company.  Although no specific amount of monetary
damages is claimed, plaintiffs seek damages on behalf of the classes
for:

     (1) personal injuries,

     (2) nervous shock,

     (3) physical and mental pain,

     (4) fear of future illness,

     (5) medical expenses and

     (6) loss of earnings and earnings capacity

At the present time, the court has required the Scottish employees to
seek their remedies in Scottish courts.  Plaintiffs presently seek a
certification of a medical monitoring class, which the Company opposes.
Discovery in the case is proceeding and the Company intends to defend
this action vigorously.


PEMSTAR INC.: Dealing With Bevy of Securities Suits in MN Court
----------------------------------------------------------------
Pemstar, Inc. faces several securities class actions pending in the
United States District Court for the District of Minnesota on behalf of
purchasers of the Company's publicly traded securities during the
period between June 8, 2001 and May 3, 2002.

The lawsuit asserts securities fraud claims under sections 10(b) and
20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder, and alleges that the Company and certain of its
officers and directors caused PEMSTAR's shares to trade at artificially
inflated levels through the issuance of false and misleading
statements, according to an earlier Class Action Reporter story.

The complaint charges that the Registration Statement and Prospectus
for the Secondary Offering and other public statements were materially
false and misleading when issued, as they misrepresented and/or omitted
one or more of the following adverse facts which then existed and
disclosure of which was necessary to make the statements made not false
and/or misleading.

The Company believes the allegations are without merit.


SPANGLES INC.: Faces Suit For Disabilities Act Violations in KS Court
---------------------------------------------------------------------
Wichita, Kansas-based restaurant chain Spangles, Inc. faces a class
action alleging violations of the Americans with Disabilities Act (ADA)
in Sedgwick County District Court, the Wichita Business Journal
reports.

The suit, commenced by the Independent Living Resource Center, alleges
that the Company has failed and refused to remove architectural
barriers in the parking lots of its restaurants.  The suit further
states that the barriers violate the ADA and create safety hazards for
customers with disabilities who use accessible parking space, access
aisles and wheelchair ramps.

A Company official says the Company is reviewing the lawsuit and has no
comment at this time, according to the Wichita Business Journal.  A
hearing on the case is set for 9 am, September 20 at the Sedgwick
County District Court, fifth floor, before Judge Richard Ballinger.


TOBACCO LITIGATION: Philip Morris Offers $35M To Settle Retailers' Suit
-----------------------------------------------------------------------
Tobacco giant Philip Morris has offered about $35 million to settle its
share of a $240 million class action launched by thousands of tobacco
retailers, the Australian Financial Review reports.

A Philip Morris spokesperson confirmed recently that the Company has
offered to settle its share of a class action brought by about 8,000
tobacco retailers who are claiming about $240 million, plus interest,
from Philip Morris and British American Tobacco.

The class action, involving retailers from around Australia, followed
upon the heels of a landmark High Court decision handed down last year,
which ordered Philip Morris and British American to refund retailers
state license fees, paid in 1997, which were deemed unconstitutional.

It is understood that Philip Morris has agreed to pay the 8,000 tobacco
retailers involved in the class action a total of about $35 million.
That figure could increase if about 9,000 other affected retailers join
the suit.

In addition, Philip Morris already has negotiated independent
settlements with some of the bigger tobacco retailers around Australia.
Known as the Feesback program, the class action is backed by listed
litigation funder, Insolvency Management Fund (IMF).

In a statement to the Australian Stock Exchange yesterday, IMF said
that Philip Morris had made a settlement offer, which the company's
lawyers had recommended the 8,000 tobacco retailers it was funding
should accept.  However, the statement said no settlement offer had
been forthcoming from British American Tobacco, which accounts for
about two-thirds of the original $240 million claim.

"Settlement of the proceedings against Philip Morris will not affect
continuation of the claim against British American Tobacco, also funded
by Insolvency Litigation Fund, an IMF subsidiary, and whose claim is
approximately double the size of the Philip Morris claim," IMF said in
its statement.

IMF said legal proceedings against both tobacco companies would proceed
if the Philip Morris settlement was not accepted by October 1.  IMF
also revealed the settlement would result in IMF receiving fees in
excess of $5 million.  The litigation funders were proposing to take a
40 percent cut of the settlement proceeds under the original class
action agreement, but the figure has been reduced to about 30 percent
to encourage the 8,000 tobacco retailers to accept the Philip Morris
offer.


UNITED STATES: Agriculture Dept To Improve Minority Farmers' Programs
---------------------------------------------------------------------
The United States Department of Agriculture (USDA), after facing sit-
ins and protests by black farmers this summer, announced yesterday a
series of steps to strengthen its programs for minority farmers, the
Richmond Times-Dispatch reports.

The steps include transfer of nearly $100 million in additional money
for an operating loan program for minority farmers and efforts to:

     (1) expand technical assistance;

     (2) make more farm loan decisions on time; and

     (3) provide further diversity training to employees.

"We believe these actions will provide additional focus to our efforts
to ensure fair and equitable treatment for all producers," Agriculture
Secretary Ann M. Veneman said.  She outlined the steps in a letter to
leaders of a black farmers' group.

However, Gary Grant of Tillery, NC, one of the leaders, said it did not
appear USDA was addressing the long-term, chief problem - eliminating
discrimination against minority farmers seeking loans in field offices
of the Department.  "It's another bunch of hogwash," said Mr. Grant as
he read Ms. Veneman's letter.

"Until we get at the core of the problem, nothing is going to change.
And the black farmers will be extinct," said Mr. Grant, a leader of the
Black Farmers & Agriculturists Association.

Earlier this week, Ms. Veneman announced that USDA was opening a new
office to help minority farmers with their loans.  Mr. Grant and John
Boyd Jr. of South Hill, Va., president of the National Black Farmers
Association, both dismissed that as a political gesture creating little
more than a new telephone hot line.


US TIMBERLANDS: Faces Shareholder Suit Over Privatization Offer in DE
---------------------------------------------------------------------
US Timberlands Co., LP faces a consolidated class action, filed in the
Delaware Court of Chancery, against it, its general partner US
Timberland Services Co., LLC and the general partner's board of
directors alleging, among other things, breach of fiduciary duty and
self-dealing in connection with the receipt by the Company of a revised
offer, dated April 23, 2002, from a group led by senior management of
the Company to take the Company private.

The lawsuits were filed by the purported unitholders of the Company, on
behalf of all other similarly situated unitholders, and seek to have
the class certified and the purported unitholders bringing the action
named as a representative of the class.

In addition, the lawsuits seek to enjoin the going private transaction,
to rescind the going private transaction if it is consummated, and to
recover damages and attorneys' fees.

In the opinion of management, after consultation with outside counsel,
the suit is not expected to have a material adverse effect on the
Company's financial position or results of operations. Management and
its counsel are reviewing the facts of the injury claims and it is too
early to assess its effect on the Company.


WHYALLA AIRLINES: Victims' Families Question Cause Of Airplane Crash
--------------------------------------------------------------------
New tests cast doubt on the cause of a Whyalla Airlines crash that
killed eight people in South Australia, in 2000, according to a report
by Australasian Business Intelligence (ABIX).  Families of the deceased
and their lawyers are waiting to learn the definitive cause of the
crash.

Tests in the United States revealed that the aircraft's crankshaft
failed from within, leading to the failure, in turn, of a connecting
rod bearing.  The Australian Transport Safety Bureau reported in
December 2001, that the failure of the connecting rod bearing had lead
to the failure of the crankshaft.

David Greenwell, who is representing the families of the victims at a
South Australian inquest, said first priority is to establish the cause
of the crankshaft failure.


WORLD GAMES: Investors To Launch Suit V. Fraudulent Gambling Scheme
-------------------------------------------------------------------
Queensland police have discovered an online gaming and virtual stock
exchange that allegedly swindled hundreds of investors worldwide, the
Courier Mail reports.  The website, named World Games, Inc., alleges
offers subscribers tens of thousands of Swiss francs a week for
referring punters to the site and from commissions on gambling
transactions.

More than 20 Australian investors are planning to launch a class action
against the Company, and its associated companies, such as:

     (1) Harroford Developments,

     (2) VG Global, and

     (3) World Play Ltd,

Another target of the suit is Brisbane businessman Greg Kennedy, whom
the website lists as its technical and administrative contact.  The
investors are allegedly claiming hundreds of thousands of dollars in
winnings and commissions.

Lawyers for the operators of World Games Inc, however, said there were
no investors owed money outside "normal trading terms" and were unaware
of police investigations, the Courier Mail reports.  Mr. Kennedy could
not be reached for comment.  His lawyer, Scott Coulthart, confirmed Mr
Kennedy had links to VG Global, an earlier version of the scheme, which
was owned by British Virgin Islands company Harraford Developments.

Mr Coulthart told the Courier Mail that World Play Ltd, also a British
Virgin Islands company, owned the World Games Inc website and that VG
Global players had been "rolled over into World Games Inc."

However in a written statement, Mr Coulthart last night said "there are
no investors in World Games Inc who are owed money outside" Mr.
Kennedy's, and World Play Ltd's "normal trading terms."

                        * Asbestos Alert *

ASBESTOS LITIGATION: Halliburton, Honeywell to Settle Asbestos Claims
---------------------------------------------------------------------
Halliburton Co. and Honeywell International Inc. won more time to
negotiate settlements of more than 300,000 asbestos-related claims
against former units now in bankruptcy proceedings.

US Bankruptcy Judge Judith Fitzgerald extended stays until November 7
for Halliburton and until October 24 for Honeywell to allow each more
time to work out agreements with creditors, spokesmen for the companies
said.

The claims involve Harbison-Walker Refractories, formerly owned by
Halliburton's Dresser unit, and North American Refractories Co., a
Honeywell subsidiary from 1979 to 1986. Both units are now owned by
Austria's RHI AG, which sought Chapter 11 protection in January.

Halliburton and Honeywell plan to use the RHI bankruptcy to create
trusts to pay for current and future asbestos claims against the former
units. Doing so requires approval from 75 percent of creditors.

Halliburton has predicted that its asbestos-litigation expenses will
reach $2.2 billion by 2017. It expects insurance to cover all but $602
million of its claims.

It is the sixth time Judge Fitzgerald extended the freeze on
Halliburton claims since the court initially halted the claims in
February. It is the seventh extension for Honeywell, spokesman Michael
Holland said.


ASBESTOS LITIGATION: Resolving Asbestos Claims To Reach $275 Billion
--------------------------------------------------------------------
American asbestos-related lawsuits may cost companies and insurers as
much as $275 billion, according to a Rand Institute for Civil Justice
report.
Asbestos-related litigation has spread beyond the traditional asbestos-
linked industries into "virtually all parts of the US economy," the
report said.

Claims now cover 85 percent of the economy, according to Rand, which
describes the issue as "the longest-running mass tort litigation in
U.S. history."  The costs of resolving asbestos claims reached $54
billion by 2000, according to the report.


ASBESTOS LITIGATION: Allianz Covers Risk, Puts $750M Into US Unit
-----------------------------------------------------------------
Allianz AG, Europe's biggest insurer, said recently it will pump $750
million into its U.S. unit, Fireman's Fund, to cover asbestos-related
claims, sparking a further drop in the German company's shares,
according to a report by the Associated Press Newswires.

Allianz said the transfer to Fireman's Fund will double the Novato,
California-based division's reserves to $1.51 billion.

The German insurer first announced last spring that it would boost the
Fireman's Fund reserves, and the amount was lower than some analysts
were expecting.  The move has highlighted uncertainty about potential
claims against asbestos-makers and their insurers, and has soured
investor confidence already shaken by falling earnings and  slumping
stock markets.

Insurers and manufacturers, such as the engineering giant ABB, could
face claims for billions of dollars in class-action lawsuits in the
United States over asbestos, the building material used widely in the
1970s and suspected of causing lung cancer.

Allianz, also wrestling with losses at its Dresdner Bank unit and
facing a wave of claims from the flooding across Europe, in July
abandoned its full-year profit forecast after posting a surprise
second-quarter loss.


AMERICA BILTRITE Faces 535 Pending Asbestos Claims as of June 2002
------------------------------------------------------------------
American Biltrite Inc. says it is co-defendant with many other makers
and distributors of asbestos-containing products in approximately 535
pending claims involving approximately 1,471 individuals as of June 30,
2002.  The claimants allege personal injury from exposure to asbestos
or asbestos-containing products.

The company estimates that its range of probable and estimable
undiscounted losses for asbestos related claims is $15.6 million to
$27.8 million before considering insurance recoveries, which it expects
will fully cover the liability.

Its asbestos liabilities and insurance recoveries are:

                                               June 30,    December 31,
                                                 2002          2001
                                               ---------    -----------
-
(In thousands)
Insurance for asbestos-related liabilities     59,508       60,787
Asbestos-related liabilities                   68,627       68,627

Activity related to asbestos claims:

                                    Six Months Ended         Year Ended
                                 June 30, 2002        December 31, 2001
                                  ------------------   ----------------

        Beginning claims                 464                    330
        New claims                        94                    189
        Settlements                       (4)                   (15)
        Dismissals                       (19)                   (40)
                                         ---                    ---

        Ending claims                    535                    464
                                         ===                    ===

COMPANY PROFILE

American Biltrite Inc. (AMEX: ABL)
57 River St.
Wellesley Hills, MA 02481-2097
Phone: 781-237-6655
Fax: 781-237-6880
Web site: http://www.americanbiltriteinc.com

Employees                       : 2,850
Revenue                         : $418,261,000
Net Income (Loss)               : $2,816,000
Assets                          : $372,764,000
Liabilities                     : $295,516,000
No. Of Asbestos Claims          : 535*
Estimated Asbestos Liabilities  : $68,627,000*
Insurance Recoveries            : $59,508,000*

(For the year ended December 31, 2001)
(*As of June 30, 2002)

Business Description: American Biltrite Inc. produces both floor
coverings and jewelry. ABI gets about 55% of its sales from its
controlling ownership of Congoleum (vinyl sheet and tile) and its
wholly owned subsidiary Janus Flooring (hardwood floors). It produces
jewelry through its 95% control of costume-jewelry supplier K&M
Associates. ABI also makes industrial products such as adhesive-coated,
pressure-sensitive papers used to protect materials during handling.
The company's American Biltrite (Canada) subsidiary makes rubber and
vinyl flooring and other products such as conveyor belts, truck and
trailer splashguards, and sheet rubber.

Cooper Industries Inc., which makes electrical products, tools,
hardware and metal support products, says it stands to assume
liabilities from thousands of asbestos cases stemming from its
discontinued businesses, including the Abex product line obtained from
Pneumo-Abex Corp.
The businesses were operated through Cooper's two subsidiaries whose
stock was sold to Federal-Mogul Corp. in October 1998 under a Purchase
and Sale Agreement.

Cooper says it faces potential exposure for asbestos liabilities in the
event Federal-Mogul, which filed for Chapter 11 bankruptcy petition on
October 1, 2001 to resolve burgeoning asbestos claims, rejects the 1998
agreement.

From August 28, 1998 through June 30, 2002, a total of 81,099 Abex
Claims were filed, of which 17,782 claims have been resolved leaving
63,317 Abex claims pending at June 30, 2002, that are the
responsibility of Federal-Mogul.

During the six months ended June 30, 2002, 5,947 claims were filed and
808 claims were resolved. Since August 28, 1998, the average indemnity
payment for resolved Abex claims was $912 before insurance.

A total of $32.2 million was spent on defense costs for the period
August 28, 1998 through June 30, 2002. Historically, existing insurance
coverage has provided 50% to 80% of the total defense and indemnity
payments for Abex claims.

With Federal-Mogul's bankruptcy filing, all pending asbestos
litigation of Pneumo Abex Corp. and Wagner Electric Co. is stayed, and
no party may take any action to pursue or collect on such asbestos
claims absent specific authorization of the Bankruptcy Court or the
High Court.

Federal-Mogul estimates that combined liabilities from Abex and Wagner
cases was $216.6 million for claims currently pending and those which
were reasonably estimated to be asserted and paid through 2012.

Cooper says Abex and Wagner maintained product liability insurance
coverage for most of the time that they manufactured products that
contained asbestos.


COMPANY PROFILE

Cooper Industries Ltd. (NYSE: CBE)
600 Travis, Ste. 5800
Houston, TX 77002
Phone: 713-209-8400
Fax: 713-209-8995
Web site: http://www.cooperindustries.com

Employees                       : 30,500
Revenue                         : $4,209,500,000
Net Income                      : $231,300,000
Assets                          : $4,611,400,000
Liabilities                     : $2,588,200,000
No. of Asbestos Claims          : 81,099
Insurance Recoveries            : $216,600,000

(For the year ended December 31, 2002)

Business Description: Cooper makes electrical products, tools,
hardware, and metal support products. The company's electrical products
(more than 80% of sales) include electrical and circuit-protection
devices, residential and industrial lighting, and electrical power and
distribution products for use by utility companies. Cooper's tool
offerings include such venerable brands as Crescent wrenches and
pliers, Apex impact sockets, Plumb hammers, and Weller wielding
supplies. Cooper's metal support products (B-Line) include conduits and
cable trays.


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.


COOPER INDUSTRIES: Expects Further Liability Costs for Ended Businesses
-----------------------------------------------------------------------
Cooper Industries Inc., which makes electrical products, tools,
hardware and metal support products, says it stands to assume
liabilities from thousands of asbestos cases stemming from its
discontinued businesses, including the Abex product line obtained from
Pneumo-Abex Corp.  The businesses were operated through Cooper's two
subsidiaries whose stock was sold to Federal-Mogul Corp. in October
1998 under a Purchase and Sale Agreement.

Cooper says it faces potential exposure for asbestos liabilities in the
event Federal-Mogul, which filed for Chapter 11 bankruptcy petition on
October 1, 2001 to resolve burgeoning asbestos claims, rejects the 1998
agreement.

From August 28, 1998 through June 30, 2002, a total of 81,099 Abex
Claims were filed, of which 17,782 claims have been resolved leaving
63,317 Abex claims pending at June 30, 2002, that are the
responsibility of Federal-Mogul.

During the six months ended June 30, 2002, 5,947 claims were filed and
808 claims were resolved. Since August 28, 1998, the average indemnity
payment for resolved Abex claims was $912 before insurance.

A total of $32.2 million was spent on defense costs for the period
August 28, 1998 through June 30, 2002. Historically, existing insurance
coverage has provided 50% to 80% of the total defense and indemnity
payments for Abex claims.

With Federal-Mogul's bankruptcy filing, all pending asbestos
litigation of Pneumo Abex Corp. and Wagner Electric Co. is stayed, and
no party may take any action to pursue or collect on such asbestos
claims absent specific authorization of the Bankruptcy Court or the
High Court.

Federal-Mogul estimates that combined liabilities from Abex and Wagner
cases was $216.6 million for claims currently pending and those which
were reasonably estimated to be asserted and paid through 2012.

Cooper says Abex and Wagner maintained product liability insurance
coverage for most of the time that they manufactured products that
contained asbestos.


COMPANY PROFILE

Cooper Industries Ltd. (NYSE: CBE)
600 Travis, Ste. 5800
Houston, TX 77002
Phone: 713-209-8400
Fax: 713-209-8995
Web site: http://www.cooperindustries.com

Employees                       : 30,500
Revenue                         : $4,209,500,000
Net Income                      : $231,300,000
Assets                          : $4,611,400,000
Liabilities                     : $2,588,200,000
No. of Asbestos Claims          : 81,099
Insurance Recoveries            : $216,600,000

(For the year ended December 31, 2002)

Business Description: Cooper makes electrical products, tools,
hardware, and metal support products. The company's electrical products
(more than 80% of sales) include electrical and circuit-protection
devices, residential and industrial lighting, and electrical power and
distribution products for use by utility companies. Cooper's tool
offerings include such venerable brands as Crescent wrenches and
pliers, Apex impact sockets, Plumb hammers, and Weller wielding
supplies. Cooper's metal support products (B-Line) include conduits and
cable trays.


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.


HONEYWELL INTERNATIONAL: Faces Auto Mechanic Asbestos Injury Lawsuit
--------------------------------------------------------------------
Honeywell International Inc. faces a trial in a lawsuit that claims
auto mechanics contracted lung disease by breathing asbestos dust while
working on brakes.

Five plaintiffs say asbestos dust from brakes manufactured by former
Honeywell unit Bendix Corp. caused mesothelioma, a deadly lung disease.
Their lawyers are seeking $100 million in damages to compensate for
their illnesses.

Morristown, New Jersey-based Honeywell is the biggest maker of
automated controls and cockpit electronics.

``Bendix was the world's leader in design and production of brakes,''
said Mark Lanier, a Houston attorney representing the mechanics and
their families. ``Their brakes are a major cause of the asbestos in the
air of our cities. Our plaintiffs got mesothelioma by doing auto
mechanic brake work with Bendix brakes.''

Honeywell spokesman Michael Holland, disagreed: ``We do not believe
that exposure to Bendix brakes could have been the cause of their
disease.''

A study this year by the New York consulting firm Towers Perrin
concluded asbestos suits may cost U.S. companies and insurers $200
billion.

Honeywell is the last of about 60 companies remaining in the auto
mechanics' lawsuit, as the other companies either reached settlements
or were dropped from the case.

Georgia Pacific Corp., Pfizer Inc., and Union Carbide Corp., a unit of
Dow Chemical Co., settled with the plaintiffs, Lanier said. He didn't
disclose the amount of the settlements.

The plaintiffs accuse Honeywell of negligence and deliberate misconduct
for failing to tell them that asbestos in Bendix brakes might cause
lung disease.

Phil Hawley, 65, was a professional mechanic, as was Richard McDole,
who died in 1999. McDole's wife, Louise, is suing over his death.
Joseph Trocki, 78, and Arlene Olander, 59, worked on cars in their
spare time. Chris Sims, 39, says he contracted mesothelioma by watching
while his father worked on cars.

Lanier said the plaintiffs were exposed to asbestos at various times
during the 1960s and 1970s.

Honeywell has $2 billion in insurance to pay for settlements and
compensatory damages in asbestos litigation, according to its
most recent filing with the Securities and Exchange Commission.

At least 53,000 Bendix cases were settled between 1981 and 2001, the
report said.

Bendix was purchased by AlliedSignal Inc. in the mid-1980s.
AlliedSignal bought Honeywell in 1999 and assumed Honeywell's name.

In addition to compensatory damages, Lanier said he will ask for $1
billion in punitive damages. Under Illinois law, those damages would be
paid to the state, he said.


COMPANY PROFILE

Honeywell International Inc.
101 Columbia Rd., PO Box 4000
Morristown, NJ 07962-2497
Phone: 973-455-2000
Fax: 973-455-4807
Toll Free: 800-707-4555
Web site: http://www.honeywell.com

Employees                       : 115,000
Revenue                         : $23,652,000,000
Net Income (Loss)               : ($99,000,000)
Assets                          : $24,226,000,000
Liabilities                     : $5,270,000,000
No. of Asbestos Cases           : 116,000
Insurance recoveries            : $2,000,000,000

(For the year ended December 31, 2001)
(*As of June 30, 2002)

Business Description: About 40% of Honeywell's sales come from
aerospace products such as turbofan and turboprop engines and flight
safety and landing systems. Honeywell's automation and controls segment
(30% of sales) includes home and industrial heating, ventilation, and
manufacturing process products. Honeywell also makes performance
materials used in semiconductors, polymers for electronics and fibers,
friction materials, and consumer car care products (Prestone, FRAM).


ILLINOIS POWER: Faces 34 Asbestos Exposure Related Lawsuits
-----------------------------------------------------------
Illinois Power Co. says there are 34 lawsuits pending against it for
illnesses, based on alleged exposure to asbestos at generation
facilities it previously owned.  Twenty-eight of the lawsuits were
filed during 2002, 24 were filed subsequent to March 31, 2002.

The company says it intends to fight the lawsuits. It does not expect
to incur any material liability with respect to the 34 lawsuits.


COMPANY PROFILE

Illinois Power Co.
500 S. 27th St.
Decatur, IL 62521-2200
Phone: 217-424-6600
Fax: 217-424-6978
Web site: http://www.illinoispower.com

Employees                       : 1,973
Revenue                         : $1,614,400,000
Net Income (Loss)               : $166,200,000
Assets                          : $4,861,100,000
Liabilities                     : $1,987,800,000
No. Of Asbestos Claims          : 34

(For the year ended December 31, 2001)

Business Description: Illinois Power Co., a regulated utility, is owned
by US energy giant Dynegy. It distributes electricity and natural gas
to 650,000 customers in Illinois. The company owns 8,000 miles of gas
transmission and distribution mains and 40,000 circuit miles of
electric transmission and distribution lines. It has been restructuring
to prepare for complete deregulation of Illinois' power market, which
took effect in May 2002. It has also joined a regional transmission
organization.


KAISER ALUMINUM: Maintains Asbestos Liabilities For 10-Year Period
------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp. says it maintains a liability for
estimated asbestos-related costs for claims filed to date and an
estimate of claims to be filed over a 10-year period, that is, through
2012.

At June 30, 2002, the balance of such accrual was $610.1 million. The
company says it has insurance coverage available to recover a
substantial portion of its asbestos-related costs.  Although the
company has settled asbestos-related coverage matters with certain of
its insurance carriers, other carriers have not yet agreed to
settlements, and disputes with certain carriers exist.

The company has filed a lawsuit against a group of its insurers after
negotiations with certain of the insurers regarding an agreement
covering both reimbursement amounts and the timing of reimbursement
payments were unsuccessful.

The company reports these asbestos-related balances and cash flows:

                                            June 30,     December  31,
                                             2002           2001
                                           --------     -------------
(In millions)
Liability                                   $610.1         $621.3
Receivable                                   494.1          501.2
                                            $116.0         $120.1




                                           Six Months Ended  Inception
                                             June 30, 2002    To Date

Payments made, including related legal costs $17.1           $355.7
Insurance recoveries                          13.2            234.8
                                              $3.9           $120.9

On February 12, 2002, the company and 15 of its wholly owned
subsidiaries filed separate voluntary petitions in the United States
Bankruptcy Court for the District of Delaware for reorganization under
Chapter 11 of the United States Bankruptcy Code.  Kaiser Aluminum
Corp., the company's parent, also filed a petition for reorganization.
None of the company's non-US affiliates were included in the cases.

The wholly owned subsidiaries of the company included in the cases are:
Kaiser Bellwood Corp., Kaiser Aluminium International Inc., Kaiser
Aluminum Technical Services Inc., Kaiser Alumina Australia Corp. (and
its wholly owned subsidiary Kaiser Finance Corp.) and 10 other entities
with limited balances or activities.

During the course of the cases, all asbestos litigation is stayed. As a
result, the company does not expect to make any asbestos payments in
the near term. Despite the cases, the company continues to pursue
insurance collections in respect of asbestos-related amounts paid prior
to the date of bankruptcy filing.

Two creditors' committees, one representing the unsecured creditors and
the other representing the asbestos claimants, have been appointed in
the cases.   The debtors are required to bear certain of the
committees' costs and expenses, including those of their counsel and
other advisors.

The plaintiffs allege that certain of their injuries were caused by,
among other things, exposure to asbestos during their employment or
association with the company or exposure to products containing
asbestos produced or sold by the company.  The lawsuits generally
relate to products the company has not sold for more than 20 years.

The Company reports these claims pending for the six months ended June
30, 2002 (through the filing date) and the year ended December 31,
2001.

                                         Jan. 1, 2002   Year Ended
                                           through        Dec. 31,
                                         Feb. 12, 2002      2001
                                         -------------  ----------

Number of claims at beginning of period     112,800       110,800
Claims received                               5,300        34,000
Claims settled or dismissed                  (6,100)      (32,000)
Number of claims at end of period           112,000       112,800

The Company says its obligations for present and future asbestos claims
will be resolved under a plan of reorganization.


COMPANY PROFILE

Kaiser Aluminum & Chemical Corp.
5847 San Felipe St. Suite 2600
Houston, TX 77057-3010
Phone: (713) 267-3777
Web site: http://www.kaiseral.com

Employees                       : 65,000
Revenue                         : $1,732,700,000
Net Income (Loss)               : ($457,000,000)
Assets                          : $2,750,000,000
Liabilities                     : $3,184,200,000
No. of Asbestos Claims Pending  : 112,000*
Estimated Asbestos Liabilities  : $610,100,000**
Insurance Recoveries (Net)      : $3,900,000

(For the year ended December 31, 2001)
(*As of February 12, 2002)
(**As of June 30, 2002)

Business Description: Kaiser Aluminum & Chemical Corp. is a direct
subsidiary of Kaiser Aluminum Corp. The company operates in all
principal aspects of the aluminum industry - the mining of bauxite, the
refining of bauxite into alumina, the production of primary aluminum
from alumina, and the manufacture of fabricated (including semi-
fabricated) aluminum products.


MEADWESTVACO CORP.: Faces Personal Injury Suits Over Asbestos Exposure
----------------------------------------------------------------------
MeadWestvaco Corp. says it has been named a defendant in asbestos-
related personal injury litigation. All of the claims against the
company resolved to date have been concluded before trial, either
through settlement, or through dismissal without any payment to the
plaintiff.

To date, the costs resulting from the litigation, including settlement
costs, have not been significant, the company says. Consistent with
certain national trends in asbestos litigation, the volume of cases
naming the company has increased in recent months.

Should the number of related lawsuits grow substantially, the Company
concedes it is possible it could incur significant costs in future
years to resolve these claims. It also believes, however, that it has
sufficient insurance to address these claims.

Although the outcome of litigation is subject to many uncertainties,
the Company does not believe that the claims will have a material
adverse effect on its consolidated financial position, liquidity or
results of operations.

COMPANY PROFILE

MeadWestvaco Corp. (NYSE: MWV)
1 High Ridge Park
Stamford, CT 20346
Phone: 203-461-7400
Web site: http://www.meadwestvaco.com

Employees                       : 32,500
Revenue                         : $3,935,000,000
Net Income (Loss)               : $88,000,000
Assets                          : $6,787,000,000
Liabilities                     : $2,660,000,000
No. of Asbestos Cases           : Unknown

(For the year ended October 31, 2001)

Business Description: MeadWestvaco, the result of a merger between Mead
and Westvaco, owns some 3.5 million acres of forest. Its two largest
divisions, packaging (folding cartons, corrugated boxes) and coated and
specialty papers (labels, book/catalog/magazine papers, business forms)
account for about 85% of sales. MeadWestvaco also makes school supplies
(paper, Five Star, Xpanz, Trapper Keeper notebooks), consumer office
products (AT-A-GLANCE, Cambridge), and specialty chemicals (activated
carbons, asphalt emulsifiers, tall oil).


METROPOLITAN LIFE: Faces Thousands of Suits Over Asbestos Exposure
------------------------------------------------------------------
Metropolitan Life says it a defendant in thousands of lawsuits seeking
compensatory and punitive damages for personal injuries allegedly
caused by exposure to asbestos or asbestos-containing products.

The lawsuits have principally been based on allegations relating to
certain research, publication and other activities of one or more of
Metlife's employees during the period from the 1920's through the
1950's, alleging that Metlife learned or should have learned of certain
health risks posed by asbestos and, among other things, improperly
publicized or failed to disclose those health risks.

Legal theories asserted against Metlife have included negligence,
intentional tort claims and conspiracy claims concerning the health
risks associated with asbestos.
Most of the cases have been resolved by settlements.
During 1998, Metlife paid $878 million in premiums for excess insurance
policies for asbestos-related claims. The excess insurance policies for
asbestos-related claims provide for recovery of losses up to $1.5
billion, which is in excess of a $400 million self-insured retention.
The asbestos-related policies are also subject to annual and per-claim
sublimits.

Amounts are recoverable under the policies annually with respect to
claims paid during the prior calendar year. As a result of the excess
insurance policies, $878 million is recorded as a recoverable at June
30, 2002.
Metropolitan Life received approximately 59,500 asbestos-related claims
in 2001. During the first six months of 2002 and 2001, Metropolitan
Life received approximately 28,000 and 34,600 asbestos-related claims,
respectively.
COMPANY PROFILE
Metropolitan Life Insurance Co. (NYSE: MET)
1 Madison Ave.
New York, NY 10010
Phone: 212-578-2211
Fax: 212-578-3320
Toll Free: 800-638-5433
Web site: http://www.metlife.com

Employees                       : 46,000
Revenue                         : $31,928,000,000
Net Income (Loss)               : $473,000,000
Assets                          : $256,898,000,000
Liabilities                     : $239,580,000,000
No. of Asbestos Cases           : 59,500
Insurance recoveries            : $878,000,000*

(For the year ended December 31, 2001)
(*As of June 30, 2002)

Business Description: Metropolitan Life Insurance (MetLife) is one of
the largest insurers in the United States, offering life and
property/casualty insurance (including home and auto coverage), as well
as savings, retirement, and other financial services for groups and
individuals. Insurance affiliates include GenAmerica, Metropolitan
Property and Casualty, and Texas Life. Its State Street Research
subsidiary provides asset management services to institutions and
individuals. MetLife demutualized and sold about a third of the company
to the public in 2000. The company has also entered the retail banking
business.


MONONGAHELA POWER: Accrues US$1.5M Reserve For Asbestos Litigation
------------------------------------------------------------------
Monongahela Power Co. reports that it has accrued a reserve of $1.5
million as of June 30, 2002 related to asbestos cases as the potential
cost to settle the cases to avoid the anticipated cost of defense.  For
the three and six months ended June 30, 2002, the Company received
700,000 of insurance recoveries (net of $200,000 of legal fees) related
to its asbestos cases.

The Company and its regulated natural gas utility division, The Potomac
Edison Company (Potomac Edison) and West Penn Power Company (West Penn)
have been named defendants along with multiple other defendants in
pending asbestos cases involving multiple plaintiffs.
On March 4, 1994, they have also received notice from the Environmental
Protection Agency, identifying them as potentially responsible parties
in connection with sites found to require remediation due to the
presence of environmental contaminants.
There are approximately 175 other PRPs involved. A final determination
has not been made for the Company's share of the remediation costs.
However, it estimates that its share of the cleanup liability will not
exceed $600,000, which has been accrued as a liability at June 30,
2002.
COMPANY PROFILE
Monongahela Power Co.
1310 Fairmont Avenue,
Fairmont, West Virginia 26554
Phone: (304) 366-3000
Web site: http://www.alleghenypower.com

Employees                       : 1,140 (estimate)
Revenue                         : $937,723,000
Net Income (Loss)               : $133,750,000
Assets                          : $1,815,505,000
Liabilities                     : $462,909,000
Estimated Asbestos Expenses     : $1,500,000
Insurance Recoveries            : $700,000

(As of June 30, 2002)

Business Description: Monongahela Power Co. owns generating capacity in
West Virginia and Pennsylvania. In all jurisdictions, Monongahela is
doing business under the trade name Allegheny Power. Including the
assets of West Virginia Power, which were acquired by Monongahela in
1999, the company serves about 390,000 electric customers and about
24,000 retail and wholesale natural gas customers in a service area of
about 13,000 square miles with a population of about 815,000.
Monongahela owns approximately 698 miles of natural gas distribution
pipelines, and during 2001 sold approximately 2.963 billion cubic feet
(Bcf) of gas.


PREMCOR INC.: Faces 20 Personal Injury Claims Over Asbestos Exposure
--------------------------------------------------------------------
Premcor Inc. says it has recently been named, along with numerous other
defendants, in approximately 20 claims alleging personal injury
resulting from exposure to asbestos.

All of the claims have been filed by employees of third-party
independent contractors who alleged exposure to asbestos while
performing services at the company's Hartford refinery.

A majority of the lawsuits have only recently been served and all of
them are in the very early stages of litigation. Substantive discovery
has not yet been conducted.

The Company says that although it is impossible at this time for it to
quantify its exposure from the claims, it does not believe that any
liability resulting from the resolution of these matters will have a
material adverse effect on its consolidated financial position, results
of operations or cash flows.


COMPANY PROFILE

Premcor Inc. (NYSE: PCO)
8182 Maryland Ave., Ste. 600
St. Louis, MO 63105-3721
Phone: 314-854-9696
Fax: 314-854-1580
Web site: http://www.premcor.com

Employees                       : 1,778
Revenue                         : $2,907,300,000
Net Income (Loss)               : ($137,300,000)
Assets                          : $2,365,200,000
Liabilities                     : $1,686,300,000
No. of Asbestos Cases           : 20

(For the six months ended June 30, 2002)

Business Description: One of the largest independent oil refiners in
the United States, Premcor produces gasoline, diesel, and aviation
fuel. It owns a refinery in Texas, one in Illinois, and one in Ohio;
the three have the combined capacity to process more than 490,000
barrels of crude oil per day (although Premcor plans to close its
underperforming 70,000-barrels-of-crude-oil-per-day Illinois refinery).
The company markets unbranded gasoline and other petroleum products
wholesale to about 600 retail outlets. Investment firm Blackstone Group
owns a 52% stake in the company.


                     New Securities Fraud Cases


AOL TIME: Marc Henzel Commences Securities Fraud Suit in S.D. New York
----------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court, Southern District of New York on
behalf of purchasers of the securities of AOL Time Warner, Inc. (NYSE:
AOL) between April 18, 2001 and April 24, 2002, inclusive.  The suit
names as defendants the Company and:

     (1) Stephen Case,

     (2) Michael Kelly,

     (3) Richard Parsons and

     (4) Gerald M. Levin

The suit 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 between April 18, 2001 and April 24, 2002, thereby artificially
inflating the price of Company securities.

As alleged in the complaint, defendants issued numerous materially
false and misleading statements concerning the Company, the synergies
derived from the merger of America Online Inc. and Time Warner, Inc.
and the Company's prospects and earnings projections.

The complaint alleges that these statements were materially false and
misleading because they failed to disclose:

     (i) that the Merger was not generating the synergies as
         represented by defendants;
    (ii) that the Company was experiencing declining advertising
         revenues; and

   (iii) that the Company had failed to properly write down the value
         of more than $50 billion of goodwill, thereby artificially
         inflating its reported financial results and rendering its
         published financial statements materially false and misleading
         and in violation of Generally Accepted Accounting Principles.

On April 24, 2002, the last day of the class period, AOL Time Warner
issued a press release announcing its financial results for the first
quarter of 2002, and revealed that it would be taking a "one-time, non-
cash charge that reduced the carrying value of the Company's goodwill
by approximately $54 billion (Emphasis added.)."

Following this announcement, AOL Time Warner stock closed at $19.30 per
share, a decline of more than 66% from a Class Period high of $56.60
per share.  During the class period, prior to the disclosure of the
true facts about the Company, AOL Time Warner insiders sold their
personal holdings of AOL Time Warner common stock to the unsuspecting
public for proceeds in excess of $250 million.

For more information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


BAXTER CORPORATION: Marc Henzel Commences Securities Suit in N.D. IL
--------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Northern District of
Illinois, Eastern Division, on August 7, 2002, on behalf of purchasers
of the securities of Baxter International Inc. (NYSE: BAX) between
January 24, 2002 and July 18, 2002 inclusive.  The suit names as
defendants the Company and:

     (1) Harry M. Jansen Kraemer, Jr. (CEO and Chairman) and

     (2) Brian P. Anderson (CFO)

The complaint charges 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 materially false and misleading
statements to the market between January 24, 2002 and July 18, 2002.

Among other things, the complaint alleges that throughout the class
period, the Company issued press releases representing that its
BioScience and Renal divisions would grow their earnings by percentages
in the high-teens and high-single-digits, respectively, in 2002.

The complaint further alleges that these, and other, representations
were materially false and misleading because they failed to disclose
that the Company was experiencing serious problems with its BioScience
and Renal divisions.

Given these, and other undisclosed problems, defendants' repeated class
period assurances of continued growth in 2002 were lacking in any
reasonable basis when made, according to the complaint.  On July 18,
2002, the Company issued a press release regarding its results for the
second quarter of 2002, announcing disappointing sales growth for the
BioScience division and a decline in sales for the Renal division.

In addition, the Company took a $51 million charge in connection with
an acquisition and a $70 million impairment charge reflecting a decline
in the value of certain of the Company's investments.

In response to the announcement, the price of Baxter common stock
plummeted by 36.5%, falling from a $43.41 per share close on July 17,
2002, to close at $32 per share on July 18, on extremely heavy trading
volume.

During the class period, Baxter insiders sold a total of 435,700 Baxter
common shares, reaping gross proceeds in excess of $23.7 million.

For more information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


BELLSOUTH CORPORATION: Marc Henzel Commences Securities Suit in N.D. GA
-----------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court, Northern District of Georgia, on
behalf of purchasers of the securities of BellSouth Corporation (NYSE:
BLS) between January 22, 2001 and July 19, 2002, inclusive.

The complaint charges 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 materially false and misleading
statements to the market between January 22, 2001 and July 19, 2002,
thereby artificially inflating the price of Company securities.

According to the complaint, defendants reported quarter after quarter
of "record" financial results and financial growth despite a rapidly
deteriorating market for telecommunications companies.  However,
unbeknownst to the investing public:

     (1) the Company had been recognizing advertising and publishing
         revenues, purportedly in connection with the performance of
         services for customers who had not been billed (phantom
         customers), and that $163 million of this revenue was required
         to be reversed;

     (2) Generally Accepted Accounting Principles were violated because
         the transactions with "phantom customers" were not complete
         and there was not an "appropriate provision for uncollectible
          accounts."
On July 22, 2002, defendants revealed that the Company's earnings had
dropped by 67% for the second quarter of 2002, missing Wall Street
estimates.  The Company revealed that weak economic conditions in
Central and Latin America had been, and were continuing to have a
material, adverse impact on the Company's earnings and profitability.

In response to the Company's July 22, 2002 revelation, BellSouth stock
dropped by more than 18% to $22 per share. BellSouth executives, privy
to the truth regarding BellSouth's financial condition, did not share
in these losses, having sold millions of dollars of BellSouth stock.

For more information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


CROSS MEDIA: Marc Henzel Commences Securities Fraud Suit in S.D. TX
-------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Southern District of New
York, on behalf of all persons and entities who purchased or otherwise
acquired the common stock of Cross Media Marketing Corporation (ASE:
XMM) between November 5, 2001 through July 11, 2002, inclusive.  The
suit is pending against the Company and Ronald Altbach.

The complaint charges the Company and Mr. Altbach, Chief Executive
Officer and Chairman of the Board of Directors, with violations of
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and
Rule 10b-5, by issuing a series of materially false and misleading
statements to the market during the class period.

On November 5, 2001, the start of the class period, the Company
announced that it expected both revenues and earnings for 2002 to
increase in excess of 50 percent.  Defendants continued to issue
numerous press releases during the class period, which touted the
Company's performance and represented that revenues and earnings were
increasing.

Additionally, defendants misrepresented the impact and nature of the
FTC proceedings brought against the Company and others.  The material
misstatements and omissions had the cause and effect of creating in the
market an unrealistically positive assessment of the Company and its
business, finances and operations, thus causing the Company's common
stock to be overvalued and artificially inflated at all relevant times.

The truth regarding Cross Media was not fully disclosed until July 12,
2002, when defendants finally revealed that Cross Media would have a
loss for the second quarter of 2002 and that revenues for the year
would be significantly less than previously predicted.

In reactions to the July 12 news release and conference call, the
common stock price of Cross Media dropped drastically, from $6.54 on
July 10, to $4.88 on July 11, to $2.71 on July 12.

For more information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


EL PASO: Marc Henzel Commences Securities Fraud Suit in Texas Court
-------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Southern District of Texas
on behalf of a class consisting of all persons who purchased securities
of El Paso Corporation (NYSE: EP) between July 25, 2001 and May 29,
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 El Paso's trading practices and revenues caused El Paso's
stock price to become artificially inflated, inflicting damages on
investors.

For more information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


HEALTHSOUTH CORPORATION: Marc Henzel Commences Securities Suit in AL
--------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Northern District of
Alabama, on behalf of purchasers of the securities of Healthsouth
Corporation (NYSE: HRC) between January 14, 2002 and August 27, 2002
inclusive.  The action is pending against the Company and:

     (1) Richard M. Scrushy (CEO, Chairman),

     (2) Weston L. Smith (CFO, Executive VP),

     (3) William Owens (Chief Operating Officer) and

     (4) George Strong (director)

The complaint charges 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 materially false and misleading
statements to the market between January 14, 2002 and August 27, 2002.

According to the complaint, throughout the class period, the Company
issued press releases and filed reports with the SEC announcing
impressive revenue and earnings growth and repeatedly assuring the
market that the Company was well on its way to meeting its financial
targets for the year 2002 and that its fundamentals were strong.

According to the complaint, these and other statements were materially
false and misleading because they failed to disclose that the Centers
for Medicare and Medicaid Services (CMS) had issued directives
reclassifying certain categories of reimbursements, which would have a
materially negative impact on the Company's business.

The suit further alleges that defendants failed to disclose these
facts, which had been known to them for many months, in order to allow
Mr. Scrushy and Mr. Strong to sell (collectively) millions of shares of
the Company's stock at artificially inflated prices and so that the
Company could commence a $998 million note exchange/offer on more
favorable terms than if the truth regarding the CMS directives and
their impact on the Company was known publicly.

The note exchange/offering was commenced on August 27, 2002 -- one-day
before the Company disclosed the negative developments for the first
time.  According to the complaint, on August 27, 2002, the Company
shocked the market by issuing a press release announcing that CMS
directives issued on July 1, 2002 concerning reimbursements may result
in a $175 million shortfall in EBITDA from previously issued financial
guidance for 2002 and that it could not provide further guidance for
2002 and 2003 because of uncertainties posed by the directives.

In addition, the Company announced that it would spin-off its surgery-
center division as part of a massive restructuring undertaken to deal
with the developments and that Mr. Scrushy would be replaced as CEO by
Mr. Owens.  In response to this disclosure, Company stock plummeted by
over 43% to close at $6.71 per share in a single day on extremely high
trading volume.

For more information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


INTERPUBLIC GROUP: Marc Henzel Commences Securities Suit in S.D. NY
-------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court, 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 action is pending against the Company and:

     (1) John J. Dooner, Jr.,

     (2) Philip H. Geier, Jr.,

     (3) Sean F. Orr,

     (4) Frederick Molz,

     (5) Eugene P. Beard,

     (6) Richard P. Sneeder, Jr.,

     (7) David I. C. Weatherseed and

     (8) Joseph M. Studley

The suit 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 between October 28, 1997 and August 13, 2002, thereby
artificially inflating the price of Company securities.

Throughout the class period, as alleged in the complaint, 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 suit, these statements were materially false and
misleading because they failed to disclose and/or misrepresented the
following adverse facts, among others:

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

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

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

On August 5, 2002, the Company announced that it would be rescheduling
the release of its second quarter 2002 earnings "to accommodate the
Audit Committee of its Board of Directors," which was interpreted by
the market to potentially involve the Company's accounting.

In response to the uncertainty surrounding defendants' announcement,
investors sold off Company shares, which dropped $4.69 per share, or
23.8%, to close at $14.99 per share.

On August 13, 2002, the last day of the class period, the nature of the
Company's delay of its second quarter 2002 earnings release became
evident when 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 information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


KING POWER: Milberg Weiss Commences Suit To Enjoin Stock Acquisition
--------------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP initiated a class action
status to enjoin the proposed acquisition of King Power International,
Inc. (based in Thailand) (AMEX:KPG) by the Company's top executives.

The suit complains that the Company's top officers and directors
obtained millions of dollars of loans from the Company, which the
Company subsequently forgave.  Thereafter, with the Company's shares
trading at artificially depressed levels, the Company's management
sought to acquire the Company in a management-led buyout.  Under the
proposed buyout, each share of the Company would receive $3.27.

The suit alleges numerous breaches of fiduciary duty and failure of the
King Power officers/directors to act in good faith with regard to the
proposed acquisition between the Company and its officers/directors,
and their refusal to maximize shareholder value or otherwise properly
value the Company.

For more details, contact William Lerach or Darren Robbins by Phone:
800-449-4900 by E-mail: wsl@milberg.com or visit the firm's Website:
http://www.milberg.com.


MERRILL LYNCH: Cauley Geller Commences Securities Fraud Suit in S.D. NY
-----------------------------------------------------------------------
Cauley Geller Bowman & Coates, LLP initiated a securities class action
in the United States District Court for the Southern District of New
York on behalf of purchasers of CMGI Inc. (Nasdaq: CMGI) publicly
traded securities during the period between March 23, 1999 and October
6, 2000, inclusive.

The complaint charges Merrill Lynch & Co., Inc. and its former star
Internet research analyst, First Vice President Henry M. Blodget with
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 Jackie Addison, Sue Null or Ellie Baker by
Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 888-551-9944
by E-mail: info@cauleygeller.com or visit the firm's Website:
http://www.cauleygeller.com


MSC INDUSTRIAL: Marc Henzel Commences Securities Fraud Suit in E.D. NY
----------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Eastern District of New
York on behalf of purchasers of MSC Industrial Direct Co., Inc. (NYSE:
MSM) who purchased during the period between November 4, 1999 and
August 5, 2002, inclusive.  In addition to the Company, the suit also
names as defendants:

     (1) Mitchell Jacobson,

     (2) Sidney Jacobson,

     (3) Shelley Boxer,

     (4) Charles Boehlke,

     (5) David Sandler,

     (6) James Schroeder,

     (7) Dennis Kelly,

     (8) Raymond Langton,

     (9) Roger Fradin and

    (10) Philip Peller

The complaint alleges that defendants issued materially false and
misleading financial statements and press releases concerning the
Company'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 information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


PEMSTAR INC.: Marc Henzel Commences Securities Fraud Suit in MN Court
---------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the District of Minnesota on
behalf of purchasers of PEMSTAR Inc. (Nasdaq: PMTR) publicly traded
securities during the period between June 8, 2001 and May 3, 2002.

The complaint charges PEMSTAR and certain of its officers and directors
with violations of the Securities Exchange Act of 1934.  The complaint
alleges that during the class period defendants caused PEMSTAR's shares
to trade at artificially inflated levels through the issuance of false
and misleading statements.

The Registration Statement and Prospectus for the June 8, 2001
Secondary Offering were materially false and misleading when issued as
they misrepresented and/or omitted one or more of the following adverse
facts which then existed and disclosure of which was necessary to make
the statements made not false and/or misleading, including, but not
limited to:

     (1) In order to attract and maintain the appearance of a diverse
         customer base, PEMSTAR executed orders from customers without
         industry track records or acceptable financial conditions, in
         fact, several were on the brink of bankruptcy; and had an
         extremely liberal policy of accepting and holding inventory
         for and from existing and prospective customers (often without
         ever obtaining a written contract), the result of which was
         that PEMSTAR significantly increased its costs of doing
         business and was forced to write down obsolete inventory.  In
         fact, a substantial amount of the Company's inventory was
         already obsolete;

     (2) Due to a lack of internal controls, reflected, but not
         acknowledged in PEMSTAR's contracts with Datasweep, PEMSTAR's
         "cash conversion cycle," or the amount of time between the
         purchase of inventory and the collection of payment, was
         dramatically lower than its competitors', which resulted in
         PEMSTAR having to write down material amounts of accounts
         receivables; and PEMSTAR's "days sales outstanding," the
         number of days PEMSTAR had to wait payment for sales, was
         dramatically lower than its competitors', which resulted in
         PEMSTAR having to write down material amounts of accounts
         receivables.

The complaint further claims that the true facts which were known to
the defendants but concealed from the public following the Secondary
Offering were as follows:

     (i) The Company was in violation of its financial loan covenants;

    (ii) The Company's inventory and accounts receivables valuations
         were grossly overstated;

   (iii) Defendants needed to keep the Company's shares artificially
         inflated to complete the Company's convertible offering;

    (iv) The Company was then experiencing lower than projected
         utilization rates at the Company's higher cost locations which
         performed many of the Company's higher margin services,
         including engineering, New Product Introduction (NPI) and
         prototyping;

     (v) The Company's customers were being devastated financially in
         the severe "end-market" downturn;

    (vi) The Company was actually selling back its inventory to
         original equipment manufacturers ("OEMs") because, unbeknownst
         to shareholders, the Company was actually "holding" inventory
         from its OEMs without any written/binding agreement to
         perform.

As a result, the defendants' projections for the Company's third and
fourth quarters of F02 were materially false and misleading.

On May 3, 2002, the Company issued a press release entitled, "PEMSTAR
Revises Estimates for Fourth Fiscal Quarter 2002 Results and Announces
Private Placement of Up to $50 Million."  On this news, the Company's
share price plunged more than 60% to $2.84 on May 6, 2002 on trading of
more than 4.5 million shares.

For more information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


REHABCARE GROUP: Marc Henzel Commences Securities Fraud Suit in E.D. MO
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The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Eastern District of
Missouri on behalf of purchasers of the securities of RehabCare Group,
Inc. (NYSE: RHB) between February 7, 2001 and January 21,2002
inclusive.  The suit names as defendants the Company and:

     (1) H. Edwin Trusheim (Chairman of the Board) and

     (2) Alan C. Henderson (CEO, President and Director)

The complaint charges 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 materially false and misleading
statements to the market between February 7, 2001 and January 21, 2002.

The complaint alleges that, among other things, defendants issued a
series of materially false and misleading statements concerning the
Company's supplemental staffing division.

The complaint alleges these statements were materially false and
misleading because they failed to disclose that the supplemental
staffing division was experiencing serious operational problems with
information systems critical for matching supply with demand and poor
employee training and retention and that its revenues and earnings were
declining as a result.

On January 21, 2002, the Company issued a press release announcing that
earnings for its fourth quarter 2001 would be less than half than they
had reiterated in late October and that the Company would take a charge
of $8.5 to $9.5 million, $3 million of which was for a reorganization
of the staffing division.

In reaction to the Company's disclosure, as alleged in the complaint,
the price of the Company's common stock plummeted by 25% over one
trading day on heavy volume, falling from $25.21 per share to $18.70
per share.

Prior to the disclosure of the adverse facts described above, as
alleged in the complaint, the Company completed a secondary offering of
common stock, raising $50 million for the Company and more than $8
million for RehabCare insiders.

In addition, RehabCare insiders also sold $4,568,209 worth of RehabCare
common stock during the class period at artificially inflated prices.

For more information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


SUPERVALU INC.: Marc Henzel Commences Securities Fraud Suit in MN Court
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The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the District of Minnesota on
behalf of all purchasers of the common stock of Supervalu, Inc. (NYSE:
SVU) from April 4, 2001 through June 26, 2002, inclusive.

The complaint charges the Company and certain of its officers and
directors with issuing false and misleading statements concerning its
business and financial condition.  Specifically, the complaint alleges
that defendants issued statements regarding the Company's annual
financial performance and filed reports confirming such performance
with the United States Securities and Exchange Commission (SEC).

The complaint alleges that these statements were materially false and
misleading because, among other things:

     (1) the Company was employing improper accounting practices
         regarding the cost of goods sold for at least the past four
         years in violation of Generally Accepted Accounting
         Principles.  As a result, the Company announced on June 26,
         2002 that it expects $21 million in additional expenses; and

     (2) based on the foregoing, defendants' statements concerning the
         financial condition of the Company were lacking in a
         reasonable basis at all times.

The impact of these announcements was immediately felt in the market.
Company shares fell sharply following the Company's statements on June
26, 2002.  Company stock closed on June 26, 2002, at $21.95 down
approximately $6.11, or 22%.

Subsequently, on July 1, 2002, a mere five days after the Company
disclosed the existence of its internal investigation, the Company did,
in fact, materially restate its financial statements for all of Fiscal
Years 2000, 2001 and 2002.

For more information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


VIVENDI UNIVERSAL: Marc Henzel Commences Securities Suit in S.D. NY
-------------------------------------------------------------------
The Law Offices of Marc S. Henzel 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 Vivendi Universal
(NYSE: V; Paris Bourse: EX FP) between February 11, 2002 and July 3,
2002, inclusive.  The suit names as defendants the Company and Jean-
Marie Messier, its former Chairman and Chief Executive Officer.

The complaint alleges that defendants violated the federal securities
laws by issuing materially false and misleading statements throughout
the class period that had the effect of artificially inflating the
market price of the Company's securities.

Specifically, prior to and during the class period, Mr. Messier took
Vivendi on an acquisition binge that, according to published reports,
resulted in the Company amassing approximately $18 billion in debt as
he turned the Company from a water concern into an entertainment
powerhouse.

Under Mr. Messier's leadership, Vivendi completed a $30 billion buyout
of Canada's Seagram and a $10.3 billion purchase of USA Networks Inc.,
the cable and entertainment company owned by Hollywood mogul Barry
Diller.

Concomitantly, Mr. Messier orchestrated a scheme to conceal the
severity of Vivendi's liquidity problems stemming from the massive debt
load incurred as a result of these, and other, transactions.  In fact,
only days before his ouster by Vivendi's Board, Mr. Messier caused the
Company to issue several press releases that falsely stated that
Vivendi did not face an immediate and severe cash shortage that
threatened the Company's viability going forward absent an asset fire
sale.

It was only after Vivendi's Board dislodged Mr. Messier that the
Company's new management disclosed the severity of the crisis and that
the Company would have to secure immediately both bridge and long-term
financing or default on its largest credit obligations.

As detailed in the suit, Mr. Messier failed to disclose the true
contours of Vivendi's cash crisis and his affirmative
misrepresentations to the contrary have given rise to an investigation
by French authorities concerning whether Mr. Messier disclosed in a
timely fashion that the Company was in dire financial straits.

Published reports also indicate that Vivendi is engaged in urgent
discussions with lenders to secure financing and is both considering
and negotiating the sale of assets.

For more information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182


WALT DISNEY: Marc Henzel Commences Securities Fraud Suit in C.D. CA
-------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Central District of
California on behalf of all purchasers of securities of the Walt Disney
Co. (NYSE: DIS) during the period from August 15, 1997 through May 15,
2002.

The complaint asserts claims for violation of Section 10(b) of the
Securities and Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder against the Company and certain senior executives, and
asserts claims for violation of Section 20(a) against certain
management executives.

The alleged violations, according to the complaint, stem from
defendants' concealment of the existence, details, and potential
effects of a pending lawsuit over merchandising rights for products
bearing the likeness of Winnie the Pooh characters. The lawsuit seeks
to recover losses suffered by investors during the period described
above, excluding the defendants and their affiliates.

For eleven years, the Company has been involved in a bitterly contested
lawsuit with hundreds of millions of dollars at stake, but throughout
they have never advised their stockholders of its existence.  After the
Company first disclosed the potential effects of the litigation on May
15, its stock price fell, reaching $13.77 on August 13, a decline of
over 40%.

For more information, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or
visit the firm's Website: http://members.aol.com/mhenzel182

                              *********

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
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Information contained herein is obtained from sources believed to be
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Additional e-mail subscriptions for members of the same firm for the
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