CAR_Public/021018.mbx                C L A S S   A C T I O N   R E P O R T E R
  
               Friday, October 18, 2002, Vol. 4, No. 207

                              Headlines
                             
BODY SOLUTIONS: Consumer Fraud Lawsuit Stayed Due To Bankruptcy Filing
CATHOLIC CHURCH: Brooklyn Diocese Faces $300 Million Sexual Abuse Suit
FORD MOTOR: High Court Dismisses Suit Over Credit Card Rebate Program
GLOBAL CROSSING: Ex-CEO's $25M Offer To Employees Met With Skepticism
MAINE: Woman Sues Over Illegal Strip Searches Conducted on Inmates

MENORAH GARDENS: Authorities Find More Human Remains in Cemetery Yard
MICRON TECHNOLOGY: Faces 26 Antitrust Suits Over Pricing of DRAM Chips
NEW HAMPSHIRE: Goals Set By Lawsuit For Neglected Kids' Care Unmet
OKLAHOMA: Inmates' Suit v. Officials To End As Jail's New Site Endorsed
POTTERY BARN: Recalls 11,500 Tea-Light Candleholders For Fire Hazard

PRUDENTIAL SECURITIES: Asks OH Court To Set Aside $261.7M Damages Award
RURAL/METRO: Firefighters File Suit To Recover Pension Fund Losses
TARGET CORPORATION: Recalls 26T Jack-O-Lanterns For Fire, Burn Hazard
TXU CORP.: Faces Suit For Misleading Statements, Inflating Share Price

WILLIAMS COMMUNICATIONS: Comes Out Of Bankruptcy, Investors To Recover

* Nationwide Survey Reveals Jurors' Distrust of Corporate America

                          Asbestos Alert

ASBESTOS LITIGATION: Exxon Mobil Cases Dismissed By WV Asbestos Judge
ASBESTOS LITIGATION: S. African Asbestos Victims Request Prompt Payout
ASBESTOS LITIGATION: Armstrong to Recover Funds from Asbestos Mediator
AMERON INTERNATIONAL: Faces Various 4,093 Asbestos Related Lawsuits
ARGONAUT GROUP: Continues To Face Decades-Old Asbestos Liability Claims

COVANTA ENERGY: Maintains Stance of Non-liability in Lone Asbestos Suit
EVEREST RE: Totals $639.1M Reserves for Asbestos, Other Liabilities
FMC CORPORATION: Continues To Face 16,000 Asbestos Related Claims
HERCULES INC.: Estimates $73 Million in Total Asbestos Liabilities
LONGVIEW FIBER: Believes Liability for 371 Asbestos Claims Unlikely

MAGNETEK INC.: Says It Does Not Produce Asbestos-Containing Products
ROPER INC.: States It Has Valid Defenses To Asbestos Related Suits
RPM INC.: Firm, Subsidiaries Face 1,784 Asbestos Related Cases
TRIMAS CORPORATION: Faces Asbestos Related Suits From 10,075 Claimants

                     New Securities Fraud Cases         

ELECTRONIC DATA: Lockridge Grindal Commences Securities Suit in E.D. TX
KINDRED HEALTHCARE: Milberg Weiss Commences Securities Suit in W.D. KY
METROMEDIA FIBER: Johnson & Perkinson Lodges Securities Suit in S.D. NY
QUINTILES TRANSNATIONAL: Wechsler Harwood Lodges Securities Suit in NC
TXU CORPORATION: Fruchter & Twersky Commences Securities Suit in TX

TXU CORPORATION: Berman DeValerio Commences Securities Suit in N.D. TX
TXU CORPORATION: Patton Haltom Commences Securities Suit in N.D. TX


                            *********


BODY SOLUTIONS: Consumer Fraud Lawsuit Stayed Due To Bankruptcy Filing
----------------------------------------------------------------------
The class action against weight loss company, Body Solutions, Inc. has
been placed on indefinite hold, due to the Company's bankruptcy
proceedings in Texas, the St. Petersburg Times reports.  Dade City
resident Janet Makinen filed the suit in Pasco-Pinellas Circuit Court,
alleging she bought the product, but never lost weight, and couldn't
get a refund.  

The court stayed the case after the Company filed an official notice of
bankruptcy in Pasco Courts.  All new action in the near future would
take place in a Dallas bankruptcy court where Body Solutions has sought
protection from creditors while it reorganizes, attorney Kendra Mancusi
told the St. Petersburg Times.

Ms. Added that she is optimistic the case will continue.  "To represent
Florida consumers, obviously the best place to do that is in Florida
courts," she said.


CATHOLIC CHURCH: Brooklyn Diocese Faces $300 Million Sexual Abuse Suit
----------------------------------------------------------------------
The Diocese of Brooklyn faces a $300 million lawsuit filed in Queens
State Supreme Court on behalf of 42 alleged victims of sexual abuse by
12 priests from the diocese, including cases going back more than fifty
years, Reuters reports.  The suit charged the diocese with trying to
cover up incidents by paying of victims' families for their silence and
transferring priests to new churches.

Lawyer Michael Dowd filed the suit, which names the diocese, which
serves 1.6 million Catholics, and Bishop Thomas Daily, its leader since
1990, as defendants.  "The suppression of the truth allowed other
children to be literally raped and sodomized over decades," Mr. Dowd
told Reuters.

Earlier, Bishop Daily faced controversy for helping to transfer two
priests accused of abuse during his tenure at the Archdiocese of
Boston.  The Brooklyn diocese, which oversees parishes in the boroughs
of both Brooklyn and Queens, told Reuters it could not comment on the
merits of the suit but would cooperate with authorities.

`The diocese follows its policy of cooperating with civil authorities
and has turned over complaints of abuse to the district attorneys in
Queens and Kings counties for allegations going back 20 years, as they
have requested," diocese spokesman Frank DeRosa said in a statement.


FORD MOTOR: High Court Dismisses Suit Over Credit Card Rebate Program
---------------------------------------------------------------------
The United States Supreme Court dismissed the class action pending
against Ford Motor Company, a day after it heard oral arguments on the
suit, according to a LexisOne story.

In 1993, a a rebate program entitled holders of Ford Citibank Visa
credit cards and Ford Citibank MasterCards to accumulate rebate points
based on their purchases.  The points could be used toward the purchase
of a new vehicle.  In 1997, the Company announced that it would end the
program, saying the rebate system didn't coincide with its new emphasis
on brand management.

The suit, filed on behalf of 6 million consumers, alleged that both
Ford and Citigroup misrepresented the program and wrongfully
discontinued it.  The plaintiffs claim that they are entitled to
billions of dollars in ill-gotten gains, LexisOne reports.

In a one-sentence per curiam opinion, the court said the appellant's
writ of certiorari had been improvidently granted, and dismissed the
suit.


GLOBAL CROSSING: Ex-CEO's $25M Offer To Employees Met With Skepticism
---------------------------------------------------------------------
Former Global Crossing chairman Gary Winnick's offer pledging $25
million of his own money to repay employees who lost their retirement
funds was met with skepticism from various sectors, HeraldNet reports.  
One lawyer representing a group of Mr. Winnick's former employees in a
class action put it, "Why only $25 million?"

Mr. Winnick's offer is only 3% of the $750 million he grossed in three
years of selling Company stock.  Employees alleged that they used their
401(k) plans to buy Company stock on Mr. Winnick's and other
executives' assurance that the Company was doing well.

Mr. Winnick also challenged other executives to make contributions to
their own workforces.  However, experts say they are not surprised that
no one has rushed to imitate him.  Some of his peers-in-disgrace are
suffering financial problems of their own, they said, and some face
tricky legal situations, HeraldNet states.

"What Winnick is doing is a noble thing to do," former DuPont chief
executive John Krol said at a recent gathering of business leaders.  
"But he took $700 million out before he paid back $25 million. So it's
a gesture, at best."

Mr. Winnick's pledge "is a recognition that, really, employees helped
create that wealth that he ran off with, a recognition that it's not
fair he got as much as he did," Marjorie Kelly, editor and publisher of
Business Ethics magazine said, according to HeraldNet.  "That may not
be what he intended to say, but that's what his action says."

What Mr. Winnick actually said last Tuesday was that he regretted the
losses of his "family" at the corporation.

"As head of the company, I let them down - not because we engaged in
fraud, or insider trading, or chicanery. We ran our business in very
tough economic times," he told the House Energy and Commerce
Committee's panel on oversight and investigations, according to a
HeraldNet report.  "I decided, and my wife is in complete support, that
I personally along with my family will guarantee $25 million to people
who lost their money in their 401(k) plan who were not responsible for
this loss."


MAINE: Woman Sues Over Illegal Strip Searches Conducted on Inmates
------------------------------------------------------------------
A Massachusetts woman filed a class action in Maine federal court,
claiming that the York County Sheriff's Department conducted illegal
strip searches of inmates, the Associated Press Newswires states.

Michele Nilsen, 32, of North Andover, claimed she was subjected to a
strip search after her arrest for driving with a suspended driver's
license.  The lawsuit contends that jail officials routinely conducted
strip searches of all inmates in violation of state law that prohibits
automatic searches of inmates charged with certain minor crimes.  The
lawsuit does not ask for monetary damages.

Ms. Nilsen's attorney, David Webbert, said the jail routinely subjected
people to strip searches, even after the state Department of
Corrections notified York County jail officials in 1998, that they were
in violation of state law.  The suit was filed against York County and
former sheriff, Wes Phinney, who served from 1995 through 1998.

Mr. Phinney said the jail during his tenure as sheriff had policies
regarding strip searches.  He said the state report citing the
department for improper searches was mistaken in its assessment when
the report was issued.


MENORAH GARDENS: Authorities Find More Human Remains in Cemetery Yard
---------------------------------------------------------------------
Bones found amid rubble in a cemetery maintenance yard have been
identified as the human remains of a retired Air Force colonel, Hymen
Cohen, buried in 1983, the Florida Department of Law Enforcement
reported recently, according to a report by The Bradenton Herald
(Florida).

DNA test results on the bones were revealed in court at a recent
hearing presided over by Circuit Judge Leonard Fleet to determine
whether he should grant class action status to the lawsuit filed by the
1,400 families.

The families accuse the owner of the two Jewish Menorah Gardens
cemeteries, located in Palm Beach and Broward counties, respectively,
of grave desecration, which includes, among other things, mismarking
the graves, separating couples who paid to be buried together, and
squeezing new graves between old, crowded ones.

The owner, Service Corporation International (SCI), had denied any
knowledge of intentional grave desecration, but have conceded at a
previous court hearing that the remains found are human.

The importance of finding the bones in a place (a maintenance yard)
where they could only have been dumped intentionally, a place distant
from the place of burial; the importance of a definitive determination
that the bones are human and that they are the bones of some one who
was buried in a Menorah Gardens cemetery, all come together to shape
the evidence that Judge Fleet is seeking - evidence that points to an
intentional disturbance of a number of graves and mistreatment of the
human remains interred there, thereby linking the class action sought
by the families with wrongdoing committed in the cemetery.

Attorneys for relatives believe bones from at least four people were in
piles of earth used by gravediggers for fill.  The state is still
checking other locations and is running other DNA tests on other
recovered bones.


MICRON TECHNOLOGY: Faces 26 Antitrust Suits Over Pricing of DRAM Chips
----------------------------------------------------------------------
Micron Technology, Inc. faces 26 class actions filed in various federal
and state courts, alleging violations of the Sherman Antitrust Act and
other federal and state laws relating to the sale and pricing of memory
products, the Herald-Tribune reports.

The Company and other manufactures of DRAM chips allegedly secretly
agreed to cut production and artificially raise prices in late 2001 and
early 2002.  The Department of Justice has commenced an investigation
into the alleged anticompetitive practices.

In its annual report to the Securities and Exchange Commission, the
Company said it received a federal grand jury subpoena in June seeking
information about possible antitrust violations in the "dynamic random
access memory" or "DRAM" industry.

The Company declined to comment beyond its SEC filing, the Herald-
Tribune states.  "We're cooperating with the investigation but that's
as much as I can say because it's ongoing," Micron spokesman Sean
Mahoney said Wednesday.


NEW HAMPSHIRE: Goals Set By Lawsuit For Neglected Kids' Care Unmet
------------------------------------------------------------------
The state of New Hampshire is failing to adequately protect and help
abused and neglected children and their families, as called for in
settlement of a class action, says a recently issued report, according
to the Associated Press Newswires.

The report is the final one issued by a panel that oversaw the state
Division of Children, Youth and Families (DCYF) as well as the state
Department of Health and Human Services (DHHS) for five years in order
to settle a class action titled Eric L. v. Morton.

The report's conclusions could pave the way for further legal action
against the state, said Ronald Lospennato, a lawyer for the
Disabilities Rights Center, a plaintiff in the lawsuit.  The panel did
find significant improvements in adoption, foster care services and
training of employees.

However, the panel also found that DCYF was failing to:

     (1) conduct quick and thorough child abuse and neglect
         investigations;

     (2) provide consistent mental health, dental and medical care to
         children in foster care;

     (3) plan for children who have been permanently removed from their
         homes; and

     (4) provide adequate services to families.

"The areas in which there is the most noncompliance are those which
most directly impact the well-being of the children and the families
covered by the agreement," the report said.

Mr. Lospennato said the plaintiffs are waiting to see whether the
Legislature approves DCYF's request to hire more workers before making
their next move.  If the Legislature's fiscal committee approves the
request, "then I think we would be able to reach a settlement for the
next few years, and hopefully they would be able to comply," he said.

"If that does not happen, then our options are far and few between,"
said Mr. Lospennato and, under those circumstances, he added, the group
would consider going back to court.

The panel apparently believes that the DCYF has made good-faith efforts
to live up to the settlement, but realizes that the agency is seriously
hampered by a lack of state funding and high turnover among
caseworkers.

The panel has recommended hiring more staff to work in the field and at
supervisory level.  It also recommended development of a plan to reduce
turnover among caseworkers.  It also urged DCYF to coordinate with
other state agencies that provide support services, such as substance
abuse treatment.


OKLAHOMA: Inmates' Suit v. Officials To End As Jail's New Site Endorsed
-----------------------------------------------------------------------
The Garfield County Board of Commissioners, at a regular weekly
meeting, has endorsed a site as the future home of the much-delayed new
county jail, Associated Press Newswires reports.  It is probable that
the class action filed against county officials will be withdrawn when
voters go to the ballot box on November 5, and approve a quarter-cent
county sales tax rise for 15 years.

The Oklahoma Attorney General's office also sued the county in order to
expedite replacement of the present jail, which has been cited
repeatedly for health and safety violations.

County and city of Enid officials have disagreed over the jail project
for several years.  Two of the matters in dispute, but now resolved,
have been the scope of the project and its high price tag.

Proceeds of the increased sales tax, for which November approval is
expected, would fund a 198-bed jail, slated to cost about $8.4 million.  
The remainder would be used for jail operations, debt payments and
professional fees.


POTTERY BARN: Recalls 11,500 Tea-Light Candleholders For Fire Hazard
--------------------------------------------------------------------
Pottery Barn is cooperating with the United States Consumer Product
Safety Commission (CPSC) by voluntarily recalling about 11,500
Halloween tree tea-light candleholders.  There have been reports that
some tea-light candles burning in the candleholder could flare up,
posing a fire hazard and a risk of burn injuries to consumers.
        
The Company has received 10 reports of candles in the candleholder
flaring.  One consumer reported receiving a minor burn from the candle
wax.
        
The black wire "Scary Tree Tea-Light Holder" is about 18-inches
high.  The tree branches hold six tea-light candles in orange glass
pots.  The candleholder is made in China.
        
Pottery Barn stores, web site and catalogs sold the candleholders
nationwide from August 2002 through early October 2002 for about $29.
        
For more details, contact the Company by Phone: 800-699-0449 between 7
a.m. and 5 p.m. PT Monday through Saturday, or visit the firm's
Website: http://www.potterybarn.com.


PRUDENTIAL SECURITIES: Asks OH Court To Set Aside $261.7M Damages Award
-----------------------------------------------------------------------
Prudential Securities will ask an Ohio Court to set aside its verdict
awarding $261.7 million in damages to investors in the Company's
stocks.  The Company claims there was no legal basis for the verdict,
spokesman Robert DeFillipo said, according to an Online REPort story.

Shareholders filed the suit against the Company and broker Jeffrey
Pickett, alleging Mr. Pickett sold his clients' shares without their
authorization.  Mr. Pickett allegedly thought the market was going to
crash and wanted to protect his clients.  However, the stocks' value
increased, and clients claimed the missed the chance to earn on the
securities.

"Jeff has always admitted that he engaged in unauthorized trading;
there was never a dispute about that," Mike Unger of the firm Ulmer &
Berne, which represented Pickett, told Online REPort.  "He reallocated
accounts not to more risky investments in which he would be paid a
hefty commission.  He reallocated the accounts out of stock market and
into US government money market funds, and didn't make a penny doing
it; he was concerned about the safety of his clients accounts."


According to plaintiffs' attorney Tom Hargett of Maddox Hargett &
Caruso of Indianapolis, "While Pickett was under the assumption that
the market was going to crash and went on to liquidate the majority of
his book, Prudential was very bullish on the market, and the market
proceeded to run like a deer.  My clients, who were sitting there in
cash the whole time, weren't interested in Pickett's opinion.  They
were interested in what `The Rock' was saying."

One Company broker contacted by Online REPort reacted to the verdict
this way, "It is a surprising decision. It's funny, but all we're
seeing these days is, `Hey, you put me into something too aggressive
and I lost 46% of my portfolio.' Not `Hey, you put me into a safe money
market, preventing me from losing half my portfolio. I actually gained,
just not enough.' That's kind of scary when you think about it."


RURAL/METRO: Firefighters File Suit To Recover Pension Fund Losses
------------------------------------------------------------------
Arizona's private Rural/Metro Fire Department and accounting firm
Arthur Andersen LLP face a class action filed by hundreds of
firefighters in Maricopa County Superior Court, seeking to recover
millions of dollars allegedly lost from their pensions, azcentral.com
reports.

The suit alleges that the two defendants and their top executives
artificially concealed the true value of Rural/Metro stock from 1996
through 2001.  They defendants also allegedly instituted a fraudulent,
insider-trading scheme, aided by Arthur Anderson accountants, allowed
the directors to sell the stock at artificially inflated prices.  Stock
prices later plunged from US$12.25 to only 90 cents between June 1998
and June 2001.

During that time, 328 firefighters employed by Rural/Metro were issued
stock as part of an employee stock option plan and given promises that
the company would match 401k contributions for pensions that never
materialized, azcentral.com states.

The suit's lead plaintiff, Steven Springborn, president of United
Maricopa County Fire Fighters Association Local 3878, said the case is
not about revenge.  "This is an attempt to recapture what is rightfully
ours," Mr. Springborn told azcentral.com.  "We have firefighters who
have dedicated more than a quarter century of their lives to these
communities who can't afford to get off the fire truck."

Kurt Krumperman, a regional president for the Scottsdale-based company,
said that Rural/Metro had offered to negotiate the pension loss and
other issues with Local 3878 even before their contract is up.  "The
offer stands," he said.  "We want to go to the table."


TARGET CORPORATION: Recalls 26T Jack-O-Lanterns For Fire, Burn Hazard
---------------------------------------------------------------------
Target Corporation is cooperating with the United States Consumer
Product Safety Commission (CPSC) by voluntarily recalling about 26,000
ceramic Jack-O-Lanterns.  The flame of a candle placed inside the Jack-
O-Lantern could ignite the straw ribbon on the outside, posing fire and
burn hazards to consumers.
        
The Company has received two reports of candles causing smoke and heat
at the top of the Jack-O-Lantern, though no injuries or property damage
has been reported.
        
The recalled ceramic Jack-O-Lanterns are shaped like a pumpkin and are
five inches tall, six inches wide, and three inches deep.  The tan
colored pumpkins have an opening in the back and a straw ribbon
attached to the stem of the Jack-O-Lantern.  A label attached to the
stem of the pumpkin reads, "OCTOBER HARVEST."  The Jack-O-Lanterns were
manufactured in China.
        
Target stores nationwide sold the Jack-O-Lanterns from September
2000 through October 2002, for about $5.
        
For more information, contact the Company by Phone: 800-440-0680
anytime or log on to the Company's Website: http://www.target.com.


TXU CORP.: Faces Suit For Misleading Statements, Inflating Share Price
----------------------------------------------------------------------
TXU Corporation faces a class action filed by shareholders, for making
alleged false statements, artificially inflating its share price,
plaintiffs' law firm Milberg Weiss Bershad Hynes & Lerach LLP stated,
according to a report by AFX News.  The suit represents shareholders of
the stock between April 25, 2002 and October 11, 2002.

The suit alleges that the Company falsely claimed, among other things,
that its European operations were improving and that it was set to show
strength in the UK market.  Milberg Weiss said that as a result of
these statements, Company stock traded at artificially inflated levels.

Due to this inflation, the Company was able to complete a secondary
offering of 11.8 million shares of common stock, priced at $51.15 per
share, and 8.8 million units of FELINE PRIDES (equity-linked debt
securities), raising nearly $1 billion in much-needed financing.

On October 4, 2002, the Company issued an earnings warning, saying that
due to customer attrition and ongoing problems in Europe, the Company
would report 2002 EPS of only $3.25.  On this news the Company's stock
price fell to $27, from more than $40 per share the prior week.

The stock, however, continued to be inflated as the Company concealed
the extreme liquidity problems from which it was suffering, Milberg
Weiss alleges.  The law firm added that the Company assured the market
it was strong financially and that the dividend was "sound and secure."

On October 14, 2002, before the market opened, the Company said it was
cutting its dividend 80 per cent, to $0.125 per share and would no
longer support its European operations.  Its stock price immediately
collapsed on this news, closing at $12.94.

The Company provides electric and natural gas services, merchant energy
trading, energy marketing, telecommunications and energy-related
services.


WILLIAMS COMMUNICATIONS: Comes Out Of Bankruptcy, Investors To Recover
----------------------------------------------------------------------
Telecommunications Company Williams Communications Group, Inc. came out
of bankruptcy this week, sporting a new name, new owners and looking
for a new chief executive officer, according to NewsOK.com.  

Williams is now called WilTel Communications Group, Inc. and has shed
billions of dollars of debt.  Howard Janzen, president and chief
executive, resigned after seven years, creating a vacancy on the
company's new board of directors.  Ian M. Cumming, chairman of Leucadia
National Corp., which controls 44 percent of WilTel, will serve as
WilTel's interim chief executive while the board stages a nationwide
search, the company said, NewsOK.com reports.

The Company filed for reorganization early this year, a year after
being spun off from its parent firm, Williams Companies, Inc.  The
Company cited debts of $7.15 billion and assets of $5.99 billion. A
federal bankruptcy judge approved the reorganization plan last month.

In Chapter 11, a company can strip away most of its old debts, but
shareholders are often wiped out.  However, the Company has set aside
2% of its new equity has been set aside for potential recovery by
former stockholders of Williams Communications.  Some had protested and
alleged that Williams Cos. may have benefited from the manner in which
it spun off Williams Communications.

Stockholders, who have filed class action lawsuits, also may recover
money from claims against the company's officers' and directors'
insurance policy and claims against the accountants involved in
Williams Communications.

The Company said it emerged from bankruptcy with a new $375 million
credit facility and no other substantial debt obligations other than
those related to its Tulsa headquarters building, NewsOK.com reports.  
WilTel canceled existing shares of Williams Communications stock, which
were trading for a penny, and issued 50 million shares of WilTel stock.
The new shares, trading on the over-the-counter Bulletin Board under
the symbol WTELV, gained $2 Wednesday to close at $12.51.

About 54 percent of the new shares will be distributed to unsecured
creditors. Leucadia, a diversified holding company, bought its 44
percent stake in the reorganized company for about $330 million.


* Nationwide Survey Reveals Jurors' Distrust of Corporate America
-----------------------------------------------------------------
Jurors have a dissatisfaction with litigation as a solution to people's
problems with corporations, a deepening distrust toward corporations
among an unlikely group--white males and despite a growing resentment
toward class action plaintiff attorneys, a positive bias toward
individual plaintiffs, a survey conducted by DecisionQuest and the
Minority Corporate Counsel Association (MCCA) reveals.

The nationwide survey investigated how age, race, sex, and region
affect juror attitudes, came up with some surprising results.  Key
findings include:

     (1) more than 75 percent of white males, typically corporate
         America's most supportive demographic, report that they do not
         trust corporations and often cite news of recent events as
         their reason;

     (2) many white jurors are more likely to support racial
         discrimination claims, if only because they fear accusations
         of racism by other jurors;

     (3) juries are increasing overall cash awards due to a belief that
         plaintiff attorneys are taking larger percentages of the cash
         verdicts;

     (4) jurors who live in communities with a significant corporate
         presence are more hostile to "big business."  On average,
         jurors living in the South and Northeast are more hostile to
         corporations due to a more dense corporate presence in those
         areas as opposed to those in the Mid-West and West;

     (5) jurors believe senior management knows everything that happens
         in a business from the bottom up;

     (6) 60 percent of American jurors would prefer to work for a small
         company.

"It's not healthy for America when juries are so predisposed to
feelings of distrust and outright anger against the country's business
place.  It appears companies are going to have a more difficult time
getting a fair day in court than in any other period in our nation's
history," said DecisionQuest Senior Vice President Arthur Patterson in
a statement.

Additional key findings of the survey report the following attitudes of
eligible American jurors:

     (i) 76 percent are angry with corporate America for various
         reasons;

    (ii) 63 percent have developed a lesser opinion of corporations
         during the past year;

   (iii) 85 percent believe that large corporations tend to hide
         information about the dangers associated with their products
         and their waste until the government or a lawsuit makes them
         tell the truth;

    (iv) 76 percent believe that the way senior executives of large
         companies are paid promotes corporate corruption;

    (v) 73 percent believe corporate auditors tend to do what their
        corporate clients tell them to do, even if it means being
        dishonest;

    (vi) 71 percent believe managers and senior executives are more
         prone to lie on the witness stand than lower-level employees
         and expert witnesses when a large corporation is a defendant;

   (vii) 78 percent believe many companies destroy documents hoping to
         avoid taking responsibility for things that they have done;

  (viii) 87 percent believe that corporate America must increase their
         contribution to the community, with minorities demonstrating
         stronger feelings about this issue than whites.

"With this survey, the attorneys who represent corporate America just
learned that they have their work cut out for them more than anyone
could have anticipated. They can't just choose white male jurors
anymore, nor can they rely on so many of the myths that have determined
jury selection in the past," said Veta Richardson, executive director
of MCCA.

The research, led by DecisionQuest's Galina Davidoff, Ph.D., was based
on a national phone poll of 1,000 jury eligible subjects in addition to
a series of juror perception groups in Texas, Louisiana, Mississippi,
Illinois, and California, which were ranked to be the most notorious
venues by the US Chamber of Commerce State Liability Systems Ranking
Study in January.

Juror perception groups were also held in Delaware and Kansas, which
were among the states ranked fairest to corporations in the Chamber
survey.

One positive find for corporations is that 75 percent of American
jurors believe that corporate America has done an adequate to good job
of protecting diversity in the workplace. Specific juror attitudes
regarding product liability, employment discrimination, whistle-blowing
and environmental racism were also surveyed.

For more information, contact Nicole Quigley of DecisionQuest by Phone:
202-973-1328 or by E-mail: nquigley@levick.com


                             Asbestos Alert

ASBESTOS LITIGATION: Exxon Mobil Cases Dismissed By WV Asbestos Judge
---------------------------------------------------------------------
Exxon Mobil Corp. said it won a judge's dismissal of about 2,600
asbestos complaints, ending its role in a West Virginia trial that once
contained 8,000 plaintiffs and hundreds of company defendants.

The company settled another 132 claims, agreeing to pay about $2,000
each to those plaintiffs who were exposed to an Exxon asbestos product
and contracted lung cancer, said Exxon's trial lawyer, Steve Farmer.

In dismissing the 2,600 cases Tuesday, a state court judge ruled that
workers exposed to an Exxon caulk containing a small amount of asbestos
didn't have the evidence to prove the substance caused their lung
illnesses, Mr. Farmer said.

"What it shows is the strength of our case," said Farmer.  "The
products were basically vindicated."

Dow Chemical Co.'s Union Carbide remains the only defendant in the
trial that began Sept. 23.  Workers and their families claim exposure
to Union Carbide's products and plant equipment caused their illnesses.

Asbestos litigation costs have driven at least 56 companies into
bankruptcy, including Federal-Mogul Corp. and W.R. Grace & Co. Lawsuits
filed by people exposed to the cancer-causing fiber will cost
businesses $200 billion, according to a study by the Towers Perrin
consulting firm.

"We are going to continue to put on our case," said John Musser,
spokesman for Union Carbide.

Shares of Irving, Texas-based Exxon Mobil, the world's largest publicly
traded oil company, rose 76 cents to $33.59 in composite trading on the
New York Stock Exchange at 11:55 a.m.  Shares of Midland, Michigan-
based Dow rose 25 cents to $24.75.


ASBESTOS LITIGATION: S. African Asbestos Victims Request Prompt Payout
----------------------------------------------------------------------
Assurances from a British mining company that it will honor an
agreement to compensate thousands of South Africans suffering from
asbestos-related diseases were dismissed Wednesday as yet more "empty
promises" by a prominent development group working on the Southern
African region.

London-based Action for Southern Africa (ACTSA) brushed aside a
statement issued Tuesday by Cape PLC that it is "still fully committed"
to paying out millions of dollars to former employees of its South
African subsidiary, Cape Asbestos, that ran asbestos mining plants in
the north and south of the country for over 90 years until 1979.

"Cape has consistently restated its commitment towards the case since
the settlement was made last December," said ACTSA's head of campaigns
Aditi Sharma, "but these have all been empty promises."

After a three-year legal battle that ended in December, 2001, Cape
agreed an out-of-court settlement of over US$30 million for 7,500
people who worked at or lived near its asbestos mining and milling
operations in the country's Northern Province and in the southwestern
Northern Cape.

The first installment of about $15 million was due to be transferred
into a trust fund at the end of June, with the balance to be paid over
10 years, but no money has yet been paid.

"As deadline after deadline to pay out has passed, Cape has still
failed to pay a single penny in compensation," said Mr. Sharma. "These
broken promises illustrate Cape's shocking reluctance to accept
responsibility for thousands of lives it has shattered."

Cape said Tuesday it is currently in negotiations with the claimants'
lawyers and that it aims to reach a settlement "acceptable both to the
company and the claimants."

The company blames the delay on problems obtaining credit extensions
necessary for restructuring its operations. It intended to make the
compensation payout from proceeds of the sale of divisions within its
estate.

Lawyers for the claimants say they will resume legal proceedings and
plan to file an application next week for a new trial date.

"Resuming legal proceedings at this stage would not only cause further
delay but would consume more of Cape's resources on unnecessary legal
fees, rather than going direct to the people in South Africa who need
the money most," said Mr. Sharma, adding "(but) justice delayed is
justice denied."

Thousands of workers and local residents from around the plants now
suffer from the fatal lung disease asbestosis, and mesothelioma, a type
of lung cancer, as a result of breathing in dangerously high levels of
asbestos dust created by mining activities.

ACTSA, which led a public campaign in Britain to hold the company
responsible, says Cape ignored the known dangers of inhaling asbestos
dust and exposed its workers and surrounding communities, without
adequate protection, to up to 30 times the levels permitted in Britain.

Campaigners from the group, dressed in black and carrying placards with
messages from the South African claimants, protested at the company's
annual general meeting held Tuesday at its headquarters in Uxbridge,
London.

The group has pledged to continue to pressure Cape on compensation by
targeting Barclays Bank, where Cape's accounts are held, with a letter
expressing concern about the bank's role in the collapsed settlement
and urging it "to face up to its social responsibilities by ensuring
that the blighted communities in South Africa receive the compensation
owed to them without further delay."

During the shareholders' meeting, Mr. Sharma played emotive recordings
of asbestos victims, including an impassioned plea from a claimant in
the Northern Cape town of Prieska whose parents and sister died as a
result of asbestos-related illnesses.

"It's a struggle to put food on the table - not to mention the
education costs of the three children left behind," Shirley Celento
said on the recording. "Please find it in your hearts to acknowledge
our situation and act like people who do care."


ASBESTOS LITIGATION: Armstrong to Recover Funds from Asbestos Mediator
----------------------------------------------------------------------
For 12 years, Armstrong World Industries had been sending payments to a
non-profit company it had helped set up to deal with the flood of
asbestos lawsuits.  However, once it filed for bankruptcy
reorganization -- due to those very same asbestos suits -- Armstrong's
payments to the Center for Claims Resolution came to a halt.

Nearly two years into bankruptcy proceedings, Armstrong says that its
last several payments -- totaling $93.9 million, plus interest --
should be returned.  In a filing Tuesday in U.S. Bankruptcy Court in
Wilmington, Del., Armstrong also says that CCR's claim for $294.2
million from the company should be blocked until CCR returns the $93.9
million.

It's ironic that Armstrong and CCR should find themselves as
adversaries, given their history.  In 1988, Armstrong and 20 other
firms, all besieged by thousands of personal-injury lawsuits claiming
harm from exposure to the companies' asbestos products, came up with
the solution of creating CCR.

CCR, based in Princeton, N.J., settles, administers and manages valid
claims brought against each member company.  CCR sends a monthly
invoice to its members, telling them what they owe for settlements that
the company negotiated on their behalf.

In this week's filing, Armstrong cites the "preferential payment"
section of the U.S. Bankruptcy Code in an effort to recover its last
three wire transfers of money to CCR.  The code allows recovery of
payments made in the 90 days before a bankruptcy reorganization filing,
if the recipient got more than it would had received under a bankruptcy
liquidation.

Armstrong maintains that both CCR and the 14,000 asbestos personal-
injury claimants who ultimately shared in the payments came out ahead.  
The wire transfers at issue were made in September, October and
November of 2000, within the 90 days prior to Armstrong's bankruptcy
filing on Dec. 6, 2000.

Armstrong also cites other grounds for recovering the so-called
preferential payments.  Armstrong says it was insolvent -- unable to
meet its financial obligations -- at the time of the payments, even
though it had yet to file for bankruptcy.

Companies and individuals in bankruptcy proceedings use the
preferential payment provisions of the code to recover funds for their
"estate" -- the assets to be distributed to their creditors.  The way
the funds get distributed -- in other words, who gets how much -- will
be spelled out by Armstrong in a reorganization plan.

The company now is negotiating a plan with representatives of its key
creditors.  Creditors and the bankruptcy court must approve the
reorganization plan.  Armstrong has given no indication of when a plan
might be submitted for approval.

Armstrong, with 2,700 employees here, is the county's third-largest
employer. It makes floors, ceilings and cabinets.


AMERON INTERNATIONAL: Faces Various 4,093 Asbestos Related Lawsuits
------------------------------------------------------------------
Ameron International Corp. is one of numerous defendants in various
pending lawsuits involving 4,093 individuals or their representatives
alleging personal injury from exposure to asbestos-containing products.

None of such lawsuits specifies any dollar amount sought as damages by
such individuals or their representatives, and at this time Ameron is
not aware of the extent of injuries allegedly suffered by the
individuals or the facts supporting the claim that such injuries were
caused by their products.

Based upon the information available to it at this time, the Company is
not in a position to evaluate its potential exposure, if any, as a
result of these claims.  The Company intends to vigorously defend all
asbestos-related lawsuits.


COMPANY PROFILE

Ameron International Corporation (NYSE: AMN)
245 S. Los Robles Ave.
Pasadena, CA 91101-2894
Phone: 626-683-4000
Fax: 626-683-4060
http://www.ameron.com

Employees                            : 2,900
Revenues                              : $551,400,000.00
Net Income                          : $27,700,000.00
Assets                                   : $485,100,000.00
Liabilities                              : $280,900,000.00
Number of Asbestos Claims : 4,093

As of  November 30, 2001

Description: Ameron International makes steel pipe, fiberglass-
composite pipe, and reinforced concrete pipe for a variety of
industrial uses, including chemical and petrochemical processing, water
transmission, and sewage collection. It also makes protective coatings
and finishes and pipe products for petrochemical, marine, and
industrial applications. Ameron supplies ready-mix concrete and
aggregates, box culverts, and dune sand (mainly to projects in Hawaii)
and manufactures various construction products (concrete light poles)
for infrastructure projects. It has international joint ventures in
Saudi Arabia, Kuwait, Egypt, Mexico, and the US.


ARGONAUT GROUP: Continues To Face Decades-Old Asbestos Liability Claims
-----------------------------------------------------------------------
Argonaut Group Inc. received asbestos and environmental liability
claims arising out of general liability coverage primarily written in
the 1970's and into the mid-1980's.   They established a specialized
claims unit that investigates and adjusts all asbestos and
environmental claims.  

Beginning in 1986, standard liability policies contained an express
exclusion for asbestos and environmental related damage.  In addition
to the previously described general uncertainties encountered in
estimating reserves, there are significant additional uncertainties in
estimating the amount of potential losses from asbestos and
environmental claims.   Among the uncertainties impacting the
estimation of such losses are:

     (1) potentially long waiting periods between exposure and
         emergence of any bodily injury or property damage;

     (2) difficulty in identifying sources of asbestos or environmental
         contamination;

     (3) difficulty in properly allocating responsibility and/or
         liability for asbestos or environmental damage;

     (4) changes in underlying laws and judicial interpretation of
         those laws;

     (5) potential for an asbestos or environmental claim to involve
         many insurance providers over many policy periods;

     (6) long reporting delays from insureds to insurance companies;

     (7) historical data concerning asbestos and environmental losses,
         which is more limited than historical information on other
         types of claims;

     (8) questions concerning interpretation and application of
         insurance coverage; and

     (9) uncertainty regarding the number and identity of insureds with
         potential asbestos or environmental exposure.

The Company believes that these factors continue to render traditional
actuarial methods less effective at estimating reserves for asbestos
and environmental losses than reserves on other types of losses.  They
currently underwrite environmental and pollution coverages on a limited
number of policies and underground storage tanks.

They establish reserves to the extent that, in the judgment of
management, the facts and prevailing law reflect an exposure for their
ceding company not dissimilar to those results the industry has
experienced with regard to asbestos and environmental related claims.  
Due to the uncertainties discussed above, the ultimate losses may vary
materially from current loss reserves and could have a material adverse
effect on the business, results of operations and/or financial
condition of Argonaut Group, Inc.


COMPANY PROFILE

Argonaut Group, Inc. (NASDAQ: AGII)
10101 Reunion Place, Ste. 800
San Antonio, TX 78216    
Phone: 210-321-8400
Fax: 210-337-2637
Toll Free: 800-222-7811
http://www.argonautgroup.com

Employees                    : 814
Revenue                        : $292,600,000.00
Net Income                  : $2,900,000.00
Assets                           : $1,863,200,000.00
Liabilities                      : $1,415,700,000.00

As of December 31, 2001

Description: Argonaut Group is a holding company with subsidiaries in
the insurance and real estate industries. Subsidiary Argonaut Insurance
focuses on workers' compensation insurance, which accounts for more
than half of Argonaut Group's premiums. Specializing in the
construction industry, the division also writes general and automobile
lines for commercial clients. Argonaut Great Central sells property,
liability, commercial multiple-peril, and workers' compensation
policies in some 30 states, focusing on the hospitality industry.
Subsidiary AGI Properties conducts real estate leasing in California.
Argonaut has acquired specialty insurer Front Royal.


COVANTA ENERGY: Maintains Stance of Non-liability in Lone Asbestos Suit
-----------------------------------------------------------------------
Covanta Energy Corp has been named as a party to a single asbestos-
related litigation filed in 2001 in which there are 45 other
defendants.

In 1985, the Company sold all of its interests in several manufacturing
subsidiaries, some of which used asbestos in their manufacturing
processes and one of which was Avondale Shipyards, now operated as a
subsidiary of Northrop Grumman Corporation.  Some of these sold
subsidiaries have been and continue to be parties to litigation
relating to asbestos primarily from workplace exposure.

The case, which is in its early stages and is stayed against the
Company by the Chapter 11 proceeding, appears to assert that the
Company is liable on theories of successor liability.  Before the
Company's bankruptcy filing, the Company had filed for its dismissal
from the case on the basis that it is not a successor to the subsidiary
that allegedly caused the plaintiffs' asbestos exposure.

The Company does not believe it is liable to persons who may assert
claims for asbestos related injuries relating to the operations of its
former subsidiaries.


COMPANY PROFILE

Covanta Energy Corporation (OTC: CVGYQ)
40 Lane Rd.
Fairfield, NJ 07004
Phone: 973-882-9000
Fax: 973-882-7234
Toll Free: 866-268-2682   
http://www.covantaenergy.com

Employees                              : 4,700
Revenues                                : $1,082.8
Net Income                            :$ (231.0)
Assets                                     : $3,185.8
Liabilities                                : $3,179.6

As of December 31, 2001

Bankruptcy Backgrounder:

Covanta Energy filed for bankruptcy due to some factors affecting its
performance.  On top of the line is the California Energy Crisis.  
Shortly after the Credit Agreement was executed, the State of
California's energy crisis escalated.  As of March 31, 2001, Covanta
had outstanding approximately $74 million of gross accounts receivable
from the California electric utilities, including Pacific Gas &
Electric Company, which filed for bankruptcy on April 6, 2001. In
addition, in mid-summer 2001, there was a growing belief that the power
industry was substantially overbuilt, that demand for new facilities
would drop and that energy prices would erode, as evidenced by a widely
read article in Barron's published in August 2001. These factors, along
with reductions in energy prices in various regions of the United
States, contributed to a downturn in the market for new issues of
energy company securities.

The disaster of September 11, 2001, which affected the United States so
deeply, also had a negative affect on Covanta's ability to complete its
planned access to the capital markets and its ability to complete
certain aspects of its asset disposition program.  The market to sell
entertainment assets in the United States and Canada diminished as
event attendance dropped. The sale of a portion of Covanta's aviation
business was interrupted because that business is conducted with the
Port Authority, which was located in the World Trade Center in New York
City.  After September 11, the Port Authority employees with
responsibility for approving the sale of the aviation business were
unable to continue work on the proposed transaction. At the same time,
it also became significantly more difficult to sell businesses related
to the aviation industry, as airlines drastically cut back on flights
and services.  The market for energy stocks, which had begun to
deteriorate as a result of the California energy crisis, was further
dampened by the September 11 events.

Also, severe economic turmoil in Argentina impacted Covanta's ability
to dispose of its Argentine casino and exhibition hall.

On December 2, 2001, Enron Corporation, at the time the largest energy
company in the United States in terms of market capitalization, filed
for bankruptcy. The Enron bankruptcy, although caused by very different
factors than those impacting Covanta, had an inhibiting effect on the
credit and equity markets for energy companies.

Description: Covanta Energy Corporation, formerly Ogden Corp., operates
64 power plants in the Americas, Europe, and Asia (2,400 MW of
generating capacity). Covanta is one of the largest operators of waste-
to-energy facilities; it also has plants fueled by more traditional
means. The company also provides water and wastewater services in the
US; it has sold most of its aviation and entertainment assets. Covanta
is reorganizing under bankruptcy protection and is negotiating an
agreement to be acquired by investment firm Kohlberg Kravis Roberts
once the reorganization is complete.


EVEREST RE: Totals $639.1M Reserves for Asbestos, Other Liabilities
-------------------------------------------------------------------
The gross reserves for asbestos and environmental losses of Everest Re
Group Inc were comprised of $109.5 million representing case reserves
reported by ceding companies, $52.1 million representing additional
case reserves established by the Company on assumed reinsurance claims,  
$144.8 million representing case reserves established by the Company on
direct excess insurance claims, including Mt. McKinley, and $332.7
million representing incurred but not reported (IBNR) reserves at June
30, 2002.

Gross loss and LAE reserves totaled $4,438.6 million at June 30, 2002
and $4,278.3 million at December 31, 2001.  The increase during the six
months ended June 30, 2002 was primarily attributable to increased
earned premiums and normal variability in claim settlements.

The Company's net loss and LAE reserves relating to asbestos and
environmental exposures were $544.2 million and $568.6 million at June
30, 2002 and December 31, 2001, respectively.  Industry analysts have
developed a measurement, known as the survival ratio, to compare the
asbestos and environmental reserves among companies with such
liabilities.  

The survival ratio is typically calculated by dividing a company's
current reserves by the three-year average of paid losses, and
therefore measures the number of years that it would take to exhaust
the current reserves based on historical payment patterns.  Using this
measurement, the Company's net three-year asbestos and environmental
survival ratio was 8.7 years and 9.8 years at June 30, 2002 and
December 31, 2001, respectively.

Adjusting these to include the effect of $126.4 million of available
reinsurance on the next $160.0 million of potential future reserve
strengthening at June 30, 2002 and $137.8 million of available
reinsurance on the next $160.0 million of potential future reserve
strengthening at December 31, 2001, the measures rise to the equivalent
of 10.8 years and 12.1 years respectively.  

Because the survival ratio was developed as a measure of reserve
strength and not of absolute reserve adequacy, the Company considers,
but does not rely on, the survival ratio when evaluating its reserves.

Everest Re Group continues to receive claims under expired contracts,
which assert alleged injuries and/or damages relating to or resulting
from toxic torts, toxic waste and other hazardous substances, such as
asbestos.  The Company's asbestos claims typically involve potential
liability for bodily injury from exposure to asbestos or for property
damage resulting from asbestos or products containing asbestos.  

Everest's reserves include an estimate of the Company's ultimate
liability for asbestos and environmental claims for which ultimate
value cannot be estimated using traditional reserving techniques.  
There are significant uncertainties in estimating the amount of the
Company's potential losses from asbestos and environmental claims.  
Among the complications are:

     (1) potentially long waiting periods between exposure and
         manifestation of any bodily injury or property damage;   

     (2) difficulty in identifying sources of asbestos or environmental    
         contamination;    

     (3) difficulty in properly allocating responsibility and/or
         liability for asbestos or environmental damage;

     (4) changes in underlying laws and judicial interpretation of
         those laws;

     (5) potential for an asbestos or environmental claim to involve  
         many insurance providers over many policy periods;  

     (6) long reporting delays, both from insureds to insurance
         companies and ceding companies to reinsurers;  

     (7) historical data concerning asbestos and environmental losses,
         which is more limited than historical information on other
         types of casualty claims;  

     (8) questions concerning interpretation and application of
         insurance and reinsurance coverage; and

     (9) uncertainty regarding the number and identity of insureds with
         potential asbestos or environmental exposure.

Everest believes that these factors continue to render reserves for
asbestos and environmental losses significantly less subject to
traditional actuarial methods than are reserves on other types of
losses.  Given these uncertainties, they believe that no meaningful
range for such ultimate losses can be established.  The Company
establishes reserves to the extent that, in the judgment of management,
the facts and prevailing law reflect an exposure for the Company or its
ceding companies.  

In connection with the acquisition of Mt. McKinley Insurance Company,
which has significant exposure to asbestos and environmental claims,
Prudential Property and Casualty Insurance Company, a subsidiary of The
Prudential Insurance Company of America, provided reinsurance to Mt.
McKinley covering 80% ($160.0 million) of the first $200.0 million of
any adverse development of Mt. McKinley's reserves as of September 19,
2000 and The Prudential guaranteed Prupac's obligations to Mt.
McKinley.  


COMPANY SNAPSHOT

Everest Re Group Ltd. (NYSE: RE)
c/o ABG Financial & Management Services, Inc.,, Parker House, Wildey
Business Park, Wildey Rd.
St. Michael, Barbados    
Phone: 246-228-7398
Fax: 903-604-3322
http://www.everestre.com

Employees                    : 477
Revenue                        : $1,801,500,000.00
Net Income                  : $99,000,000.00
Assets                           : $7,796,200,000.00
Liabilities                      : $6,075,700,000.00

As of December 31, 2001

Description:  Everest Re Group is the holding company for Everest
Reinsurance Company (Everest Re), an underwriter of property/casualty
reinsurance. Everest Re markets to US and international insurance
companies directly and through independent brokers. Under its
reinsurance arrangements, Everest Re assumes risks of certain policies
written by other insurance companies. The company offers specialized
underwriting in several areas, including property/casualty, marine,
aviation, and surety, as well as medical malpractice, directors and
officers liability, and professional errors and omissions liability.


FMC CORPORATION: Continues To Face 16,000 Asbestos Related Claims
-----------------------------------------------------------------
FMC Corp. reports that as of August 15, 2002, there are about 16,000
premises and product claims pending against them in several
jurisdictions.  To date, they have had discharged, all before trial,
about 51,000 claims against the Company, the overwhelming majority of
which have been dismissed without any payment to the plaintiff. The
costs of all settlements to date have totaled around $3.0 million.

Like hundreds of other industrial companies, FMC has been named as one
of many defendants in asbestos-related personal injury litigation.
These cases (most cases involve between 50-350 defendants) allege
personal injury or death resulting from exposure to asbestos in
premises of FMC or to asbestos-containing components installed in
machinery or equipment manufactured or sold by discontinued operations.
The machinery and equipment businesses FMC owned or operated did not
fabricate the asbestos-containing component parts at issue in the
litigation, and to this day, neither the U.S. Occupational Safety and
Health Administration nor the EPA has banned the use of these
components. Further, the asbestos containing materials were housed
inside of machinery and equipment and accessible only at the time of
infrequent repair and maintenance.

FMC believes that, overall, the claims against them are without merit
and consider ourselves to be a peripheral defendant in these matters.
Indeed, the bulk of the claims against them to date have been dismissed
without payment.

They intend to continue managing these cases in accordance with their
historical experience. They have established a reserve for this
litigation and believe that the outcome of these cases will not have a
material adverse effect on their consolidated results of operations,
cash flows or financial condition.


COMPANY PROFILE

FMC Corporation (NYSE: FMC)
1735 Market St.
Philadelphia, PA 19103   
Phone: 215-299-6000
Fax: 215-299-6618
http://www.fmc.com

Employees                      :  6,000
Revenue                          : $1,943,000,000.00
Net Income                    : $(337,700,000.00)
Assets                             : $2,477,200,000.00
Liabilities                        : $2,258,400,000.00
No. of Asbestos Claims : 16,000

As of December 31, 2001

Description:  FMC Corporation began as a turn-of-the-century spray-pump
company, but after a century of diversification, it had interests
ranging from chemicals to equipment used by the oil and gas industry.
FMC now is focused solely on chemicals, having spun off all other
operations as FMC Technologies. Roughly 40% of FMC's sales come from
industrial chemicals such as soda ash, peroxygens, and phosphorus (its
joint venture with Solutia called Astaris produces phosphorus
compounds.) The rest of FMC's sales come from agricultural chemicals,
mainly insecticides and herbicides, and specialty chemicals. Its
specialty chemicals include biopolymers used to add structure and taste
to food products and lithium used in batteries.


HERCULES INC.: Estimates $73 Million in Total Asbestos Liabilities
------------------------------------------------------------------
Hercules Inc. has estimated and has a recorded gross liability for
asbestos-related matters in its June 30, 2002 balance sheet of $73
million.  It believes that it is probable that $56 million of that
amount will be funded by or recovered from insurance carriers.  
Accordingly, Hercules has recorded an asset in this amount in its June
30, 2002 balance sheet.
  
The Company is a defendant in numerous asbestos-related personal injury
lawsuits and claims which typically arise from alleged exposure to
asbestos fibers from resin-encapsulated pipe and tank products which
were sold by one of the its former subsidiaries to a limited industrial
market.  The Company is also a defendant in lawsuits alleging exposure
to asbestos at facilities formerly or presently owned or operated by
the Company.

Claims are received and settled or otherwise resolved on a regular
basis.  In late December 1999, Hercules Inc. entered a settlement
agreement to resolve the majority of the claims then pending.  In
connection with that settlement, the Company also entered an agreement
with several of the insurance carriers which sold that former
subsidiary primary and first level excess insurance policies.

Under the terms of that agreement, the majority of the amounts paid to
resolve those products claims will be insured, subject to the limits of
the insurance coverage provided by those policies.  The terms of both
settlement agreements are confidential.

Since entering into those agreements, Hercules has continued to receive
and settle or otherwise resolve claims on a regular basis, with the
number of new claims averaging approximately 2,200 per year during 2000
and 2001, but at a higher rate to date for 2002.  They are evaluating
whether this increase in claims is an anomaly or a new trend.

As of June 2002, the Company had pending approximately 8,950 unresolved
claims, of which approximately 665 are premises claims. In addition, as
of June 2002, there were pending approximately 4,139 unpaid claims
which have been settled or are subject to the terms of a settlement
agreement.

In accordance with the terms of the previously mentioned agreement with
several insurance carriers, as well as agreements with two other excess
insurance carriers, the majority of the amounts paid and to be paid to
resolve those unpaid settled claims will be insured.

The Company anticipates that the primary and first level excess
insurance policies will exhaust over the next 12 to 24 months, assuming
that the rate of settlements and payments remains relatively consistent
with their past experience.  

Nonetheless, based on the current number of claims pending, the amounts
Hercules presently pays to resolve those claims, and anticipated future
claims (their assumption being that the number of future claims filed
per year and claim resolution payments remain relatively consistent
with the Company's past experience, and that these matters cease to be
an ongoing liability after 2012), Hercules believes that it and its
former subsidiary together have sufficient additional insurance to
cover the majority of its current and future asbestos-related
liabilities. It is seeking defense and indemnity payments or an
agreement to pay from those carriers responsible for excess coverage
whose levels of coverage have been or will soon be reached.

Although those excess carriers have not yet agreed to defend or
indemnify it, the Company believes that it is likely that they will
ultimately agree to do so, and that the majority of future asbestos
related costs will ultimately be paid or reimbursed by those carriers.
However, if it is not able to reach satisfactory agreements with those
carriers prior to exhaustion of the primary and first level excess
insurance policies now covering the majority of its current asbestos
related claims, then beginning as early as sometime in 2003, the
Company might be required to completely fund these matters while it
seeks reimbursement from its carriers.

Based on the assumptions, the reasonably possible future financial
exposure for these matters is estimated to be less than $200 million.
As stated above, the Company presently believes that the majority of
this financial exposure will be funded by insurance proceeds. Cash
payments related to this exposure are expected over an extended number
of years.

Due to the dynamic nature of asbestos litigation and the present
uncertainty concerning the participation of its excess insurance
carriers, however, Hercules' estimates are inherently uncertain, and
these matters may present significantly greater and longer lasting
financial exposures than presently anticipated. As a result, its
liability with respect to asbestos-related matters could exceed the
amount noted above.

If its liability does exceed that amount, Hercules presently believes
that the majority of any additional liability it may reasonably
anticipate will be paid or reimbursed by its insurance carriers.

In June 1998, Hercules and David T. Smith Jr., a former Hercules
employee and a former plant manager at the Brunswick plant, along with
Georgia-Pacific Corporation and AlliedSignal Inc., were sued in Georgia
State Court by 423 plaintiffs for alleged personal injuries and
property damage. This litigation is captioned Coley, et al. v. Hercules
Incorporated, et al., No. 98 VSO 140933 B (Fulton County, Georgia).

Plaintiffs allege they were damaged by the discharge of hazardous waste
from the companies' plants. On February 11, 2000, the Georgia State
Court dismissed Georgia-Pacific Corporation and AlliedSignal Inc.,
without prejudice. In September 2000, David T. Smith Jr., was dismissed
by the Georgia State Court with prejudice. On July 18, 2000, the
Company was served with a complaint in a case captioned Erica Nicole
Sullivan, et al. v. Hercules Incorporated and David T. Smith, Jr.,
Civil Action File No. 00-1-05463-99 (Cobb County, Georgia). Based on
the allegations contained in the complaint, this matter is very similar
to the Coley litigation, and is brought on behalf of approximately 700
plaintiffs for alleged personal injury and property damage arising from
the discharge of hazardous waste from Hercules' plant.

Although venue had been removed to the United States District Court for
the Northern District of Georgia, the case was ultimately remanded back
to state court. Both the Coley and the Erica Nicole Sullivan cases are
in the early stages of motion practice and discovery.

The Company denies any liability to plaintiffs, and it will vigorously
defend both of these cases.


COMPANY PROFILE

Hercules Incorporated (NYSE: HPC)
Hercules Plaza, 1313 N. Market St.
Wilmington, DE 19894-0001    
Phone: 302-594-5000
Fax: 302-594-5400
http://www.herc.com

Employees                        : 9,665
Revenues                          : $2,620,000,000.00
Net Income                      : $(58,000,000.00)
Assets                               : $5,049,000,000.00
Liabilities                          : $4,337,000,000.00
Asbestos Liabilities           : $73,000,000.00*
Asbestos Assets                : $56,000,000.00*
No. of Asbestos Claims    : 8950*

*As of June 30, 2002
As of December 31, 2001

Description:  Hercules Inc. supplies water-treatment chemicals and
services to the pulp and paper industry, its FiberVisions (which it is
shopping) subsidiary makes staple fibers used in disposable diapers and
automotive textiles, and its Aqualon subsidiary makes thickeners. In
its largest move to raise cash, Hercules sold its BetzDearborn water
treatment business to GE Specialty Materials for about $1.8 billion.
Hercules also has sold most of its resins operations and formed a food
gums joint venture with Lehman Brothers Holdings called CP Kelco.


LONGVIEW FIBER: Believes Liability for 371 Asbestos Claims Unlikely
-------------------------------------------------------------------
Longview Fibre Company states that, since the beginning of 2002, they
have been named a defendant in around 370 asbestos related actions in
Madison County, Illinois and St. Louis, Missouri, along with an average
of 80 other defendants per lawsuit.  They were recently named a
defendant in one asbestos related action in Smith County, Mississippi,
along with 265 other defendants.  

In each case, the plaintiffs allege asbestos related injuries from
exposure to all of the defendants' asbestos products, as well as
exposure to asbestos while working on certain of the defendants'
premises.  None of the lawsuits specifically implicates one of its
premises, and the claims are not specific as to what, if any, contacts
the plaintiffs had with the Company, its manufacturing plants or its
products.  None of these claims specifies damages sought from us
individually, but each Illinois and Missouri plaintiff alleges a
general jurisdictional amount against all defendants.

These claims are relatively recent and the plaintiffs have provided few
details about their allegations.  However, the Company understands that
it was named a defendant in these cases based on the plaintiffs' review
of sales records from an asbestos supplier.  

From 1964 to 1977, the Company intermittently used varying amounts of
asbestos under certain conditions for the purpose of controlling pitch,
a naturally occurring fouling agent, in manufacturing certain paper
products.  For paper products produced during that period where
asbestos was actually used as a pitch control agent, some asbestos
would have been incidentally incorporated into the final product as a
very small percentage of the product.  The asbestos was not used as an
integral part of the finished products nor was it important to the
integrity of the finished products.

Given the relatively recent filing of these lawsuits, as well as its
intermittent and variable use of asbestos as a pitch control agent, and
the absence, to its knowledge, of any demonstrated causal connection
between the residual amounts of the asbestos pitch control agent that
remained in certain paper products and alleged injuries to the
plaintiffs, the Company believes that these claims will not result in  
material liability, if any, for damages.

It is not possible, however, to predict with certainty the outcome of
these matters.  Predictions as to the outcome of pending litigation are
inherently subject to substantial uncertainties with respect to, among
other things, factual and judicial determinations.  The Company
believes that all these claims are covered by insurance, subject to
applicable deductibles, and it has tendered each of the lawsuits to its
insurers.  


COMPANY PROFILE

Longview Fibre Company (NYSE: LFB)
300 Fibre Way
Longview, WA 98632
Phone: 360-425-1550
Fax: 360-575-5934
http://www.longviewfibre.com

Employees                            : 3,700
Revenues                              : $876,000,000.00
Net Income                          : $24,700,000.00
Assets                                   : $1,324,400,000.00
Liabilities                              : $899,000,000.00
No. of Asbestos Cases          : 371

As of October 31, 2001

Description : Longview Fibre owns and operates tree farms, a pulp and
paper mill, and about 20 converting plants in a dozen states. Its paper
mill and converting plants produce a broad range of paper products,
including kraft paper, containerboard, and converted products such as
shipping containers and merchandise bags. Longview Fibre owns tree
farms on more than 572,000 acres in Oregon and Washington and produces
logs for sale to nearby independent sawmills and plywood plants, as
well as to customers in Japan.


MAGNETEK INC.: Says It Does Not Produce Asbestos-Containing Products
--------------------------------------------------------------------
Magnetek Inc is frequently named, along with numerous other defendants,
in asbestos-related lawsuits.  While the outcome of these cases cannot
be predicted with certainty, Magnetek is aggressively seeking to be
dismissed from the proceedings and does not believe the proceedings,
individually or in the aggregate, will have a material adverse effect
on its finances or operations.

It has never produced asbestos-containing products and is either
contractually indemnified against liability for asbestos-related claims
or believes that it has no liability for such claims, all of which
arise from business operations the Company acquired but no longer owns.


COMPANY PROFILE

Magnetek, Inc. (NYSE: MAG)
10900 Wilshire Blvd., Ste 850
Los Angeles, CA 90024    
Phone: 310-689-1600
Fax: 310-208-6133
http://www.magnetek.com

Employees                  : 1,600
Revenues                    : $188,200,000.00
Net Income                : $1,400,000.00
Assets                         : $304,900,000.00
Liabilities                    : $162,100,000.00

As of June 30, 2002

Description: Magnetek makes power control products such as AC/DC
switching power supplies, AC-to-DC battery chargers, and rectifiers
used in computers, telecom equipment, and office machines. This
division also manufactures voltage regulators used in distributed power
generators. Magnetek's industrial controls unit makes programmable
motion control and power conditioning systems. Its products include
variable-frequency motor drives used in materials handling and
industrial automation equipment, air conditioning and heating
equipment, and overhead cranes.


ROPER INC.: States It Has Valid Defenses To Asbestos Related Suits
------------------------------------------------------------------
Roper Inc believes it has valid defenses to allegations of asbestos-
related claims and intends to defend the lawsuits vigorously.

There recently has been a significant increase in certain states in
asbestos-related litigation claims alleging personal injuries due to
prolonged exposure to asbestos, including asbestos included in
manufactured products. Roper or its subsidiaries have been named as
defendants in some such cases.

None of these cases is very far advanced against Roper, and no
significant resources have been required by Roper in response to these
cases. Roper is coordinating its insurance coverage from prior years
available for these claims.


COMPANY PROFILE

Roper Industries, Inc. (NYSE: ROP)
160 Ben Burton Rd.
Bogart, GA 30622    
Phone: 706-369-7170
Fax: 706-353-6496
http://www.roperind.com

Employees                      : 2,950
Revenues                        : $586,500,000.00
Net Income                    : $55,800,000.00
Assets                             : $762,100,000.00
Liabilities                        : $438,500,000.00

As of October 31, 2001

Description : Roper Industries Inc. makes engineered products in three
segments: analytical instrumentation, industrial controls, and fluid-
handling equipment. The analytical instrumentation unit (about 45% of
sales) makes products used in digital imaging, industrial testing and
analysis, and microscopy-handling applications. Its industrial controls
(nearly 35% of sales) include rotating machinery controls, industrial
valves, and measurement components. Fluid-handling products include
rotary gear pumps and centrifugal pumps. Roper sells its products
worldwide to customers involved in oil and gas production, scientific
research, semiconductors, and power generation.


RPM INC.: Firm, Subsidiaries Face 1,784 Asbestos Related Cases
--------------------------------------------------------------
RPM Inc and certain of its wholly owned subsidiaries, principally
Bondex International, Inc., are defendants in various asbestos-related
bodily injury lawsuits.  As of May 31, 2002, there are 1,784 active
asbestos cases filed against the company compared to 1,151 as of May
31, 2001.

The increase in the number of cases filed is due, in part, to the
bankruptcy filings of various other asbestos litigation defendants.  
During the quarter ended May 31, 2002, RPM secured dismissals and/or
settlements of 236 claims for $1,356,125, net of insurer payments and
excluding defense costs, compared to 14 dismissals and/or settlements
for $129,660 for the same quarter ended May 31, 2001.  

For the fiscal year ended May 31, 2002, the Company secured dismissals
and/or settlements of 334 claims for $2,494,437, net of insurer
payments and excluding defense costs, compared to dismissals and/or
settlements of 85 claims for $851,183 for the fiscal year ended May 31,
2001.

These cases generally seek damages for asbestos-related diseases based
on alleged exposures to asbestos-containing products previously
manufactured by the Company.

The Company continues to vigorously defend all asbestos-related
lawsuits.  In many cases, the claimants are unable to demonstrate that
any injuries they have incurred, in fact, resulted from exposure to one
of the Company's products.  In such cases, the Company is generally
dismissed without payment.  

With respect to those cases where compensable disease, exposure and
causation are established with respect to one of the RPM products, they
generally settles for amounts that reflect the confirmed disease, the
seriousness of the case, the particular jurisdiction and the number and
solvency of other parties in the case.

The Company's third party insurers have historically been responsible,
under a cost sharing agreement, for the payment of approximately 90% of
the indemnity and defense costs associated with the Company's asbestos
litigation.  The Company expects that its insurers will continue to
cover a substantial portion of these costs associated with its asbestos
litigation at least into the 2004 fiscal year.  For the estimated costs
associated with asbestos litigation, which are not covered by
insurance, the Company has established a financial reserve in an
amount, which it deems to be adequate.

Based on the RPM's existing insurance arrangements and the financial
reserve mentioned above, at the present time management does not
believe that the Company's current asbestos litigation will have a
material adverse effect on the Company's consolidated financial
condition or results of operations.  However, the potential cost of
liabilities associated with asbestos claims is subject to many
uncertainties, including:

     (1) the ultimate number of claims filed against the Company,

     (2) the cost of resolving current and future claims,

     (3) the amount of insurance available to cover such claims,

     (4) future earnings and cash flow of the Company,

     (5) the impact of bankruptcies of other companies whose share of
         liability may be imposed on the Company under certain state
         liability laws,

     (6) the unpredictable aspects of the litigation process, and

     (7) potential legislative changes.

Accordingly, management cannot be certain that the future costs of the
Company's asbestos litigation will not have a material adverse effect
on the Company's future business, consolidated financial condition,
results of operations or cash flows.

In addition to the foregoing legal proceedings, several of the
Company's subsidiaries are, from time to time, parties to legal
proceedings associated with their businesses and operations. It is not
possible to predict the outcome of these proceedings, but RPM believes
that these other proceedings will not have a material adverse effect on
their consolidated financial condition or results of operations.


COMPANY PROFILE

RPM, Inc. (NYSE: RPM)
2628 Pearl Rd.
Medina, OH 44258
Phone: 330-273-5090
Fax: 330-225-8743
http://www.rpminc.com   

Employees                        : 7,687
Revenue                            : $1,986,100,000.00
Net Income                      : $101,600,000.00
Assets                               : $2,036,400,000.00
Liabilitities                        : $1,178,400,000.00
No.  of Asbestos Cases     : 1,784

As of May 31, 2002

Description: RPM is divided into industrial and consumer divisions.
Industrial offerings include products for waterproofing (Woolsey and Z-
Spar), corrosion-resistance (Carboline and Plasite), floor maintenance
(Fibergrate and Monile), and wall finishing (Dryvit). RPM's do-it-
yourselfer items include caulks and sealants (DAP and Bondex), rust-
preventative and general purpose paints (Rust-Oleum), patch and repair
products (Bondo), and hobby paints (Testor). The company operates about
60 factories worldwide, but the US accounts for 75% of sales.


TRIMAS CORPORATION: Faces Asbestos Related Suits From 10,075 Claimants
----------------------------------------------------------------------
As of September 30, 2002, Trimas Corp, a subsidiary of Heartland
Industrial Partners, and affiliate companies are party to around 560
pending cases involving an aggregate of 10,075 claimants alleging
personal injury from exposure to asbestos containing materials formerly
used in gaskets (both encapsulated and otherwise) manufactured or
distributed by certain of the subsidiaries for use in the petrochemical
refining and exploration industries.

Trimas manufactured three types of gaskets and ceased the use of
asbestos in U.S. products at various dates in the 1980's and 1990's.  
In addition, they acquired various companies to distribute their
products that had distributed gaskets of other manufacturers prior to
acquisition.  

The Company believes many of its pending cases relate to locations at
which none of their gaskets were distributed or used. About 563 cases
involving approximately 3,309 claimants have been either dismissed for
lack of product identification or otherwise or been settled or made
subject to agreements to settle.  Total settlement costs (exclusive of
defense costs) for all such cases, some of which were filed over 12
years ago, have been approximately $1.3 million.  They do not have
significant primary insurance to cover their settlement and defense
costs.

The Company believes that there may be excess insurance policies of
former owners available to them that they are in the process of
reconstructing, but they cannot give assurance as to their
availability.

Based upon experience to date and other available information, Trimas
do not believe that these cases will have a material adverse effect on
their financial condition or results of operation. However, they cannot
assure that they will not be subjected to significant additional claims
in the future or that the cost of settling cases in which product
identification can be made will not increase or that we will not be
subjected to further claims in respect of the former activities of
their acquired gasket distributors.


COMPANY PROFILE

Trimas Corporation
315 E Eisenhower Pkwy
Ann Arbor Mi 48108
3137477025
Phone (248) 631-5400

No. of Asbestos Cases              : 560  

As of September 2002
              
Description : Trimas Corporation and affiliates are a manufacturer of
highly engineered products serving niche markets in a diverse range of
commercial, industrial and consumer applications. While serving diverse
markets, most of their businesses share important characteristics,
including leading market shares, strong brand names, established
distribution networks, high operating margins, and relatively low
capital investment requirements. They estimate that approximately 70%
of their 2001 net sales were in U.S. markets in which they enjoy the
number one or number two market position within the respective product
category. In addition, they believe that in many of their businesses,
they are one of only two or three manufacturers.

                   New Securities Fraud Cases         

ELECTRONIC DATA: Lockridge Grindal Commences Securities Suit in E.D. TX
-----------------------------------------------------------------------
Lockridge Grindal Nauen PLLP initiated a securities class action in the
United States District Court for the Eastern District of Texas on
behalf of purchasers of Electronic Data Systems Corporation (NYSE:EDS)
publicly traded securities during the period between September 7, 1999
and September 24, 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 made misstatements of material facts and omitted
material facts in their public statements and elsewhere, including:

     (1) failing to disclose that EDS's backbone revenue from its
         Information Solutions IT outsourcing business is highly
         susceptible to interruption due to terms in EDS's service
         contracts that enable EDS customers to unilaterally suspend
         discretionary spending on IT outsourcing;

     (2) affirmatively misrepresenting the predictability of EDS's
         future cash flows by touting the anticipated revenue that EDS
         would supposedly receive from its IT outsourcing service
         contracts with customers without disclosing that payments
         under such contracts were not guaranteed; and

     (3) failing to disclose that EDS faced significant potential
         threats to its liquidity if its share price fell because of
         put-options and other obligations that ultimately obligated
         EDS to in effect buy back a total of 5.44 million share of EDS
         stock at fixed prices averaging over $60.00 per share.

The complaint alleges that when Wall Street began to learn about the
foregoing on September 18, 2002, after executives of EDS warned that a
lack of new revenues would wipe out more than $0.60 per share of its Q3
earnings target of $0.74, the price of EDS stock plummeted to a 52-week
low of $20, down from a class period high of $72.45.

The complaint alleges that after further revelations regarding EDS's
put-option and other liabilities emerged in the wake of the foregoing
disclosures, EDS's share price tumbled even further, reaching an intra
day low of $10.09 on September 24, 2002.

For more details, contact Karen M. Hanson by Mail: 100 Washington
Avenue South Suite 2200 Minneapolis, MN 55401 by Phone: 612-339-6900 by
E-mail: kmhanson@locklaw.com  


KINDRED HEALTHCARE: Milberg Weiss Commences Securities Suit in W.D. KY
----------------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class
action on behalf of an institutional investor in the United States
District Court for the Western District of Kentucky on behalf of
purchasers of Kindred Healthcare, Inc. (NASDAQ:KIND) securities during
the period between August 14, 2001 and October 10, 2002.

The complaint charges the Company 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 issued a
series of statements to the public indicating that the Company was
successfully emerging from bankruptcy and implementing a growth plan.  
To that end, defendants announced an increased credit facility to
facilitate acquisitions, and a public offering of Kindred common stock
priced at $46 per share.

The offering was crucial for Kindred, which had been struggling for
months to regain its market capitalization and renewed analyst
interest.  A successful offering would allow the Company to resume
selling its stock on the Nasdaq National Market System rather than the
Over-the-Counter bulletin board, where the stock had been languishing
since Kindred's emergence from bankruptcy in April 2001.

During the class period, defendants reported quarter after quarter of
improved financial results and acquisitions.  In response, Kindred
stock traded at over $45 per share during April 2002.  Defendants
failed to reveal that due to a dramatic increase in professional
liability claims, especially in Florida, defendants were not properly
reserving for these incurred claims.

During May 2001, Florida had enacted reform legislation, which became
effective October 5, 2001.  There was a marked increase in the number
of professional liability lawsuits filed in Florida in anticipation of
the new law taking effect.  Medical liability insurance premiums
skyrocketed and certain insurance companies stopped writing medical
liability insurance in Florida.

As a result, Kindred competitors such as Beverly Enterprises, took
charges in order to account for the increase in lawsuits.  Defendants
assured investors and analysts that Kindred (which was largely self-
insured) carefully reviewed its reserves for claims on a monthly basis,
and would not have to take a large "catch-up" charge since it
maintained adequate reserves.

Despite defendants' failure to properly maintain reserves for millions
of dollars in claims, several individual defendants signed sworn
statements on August 13, 2002, affirming the accuracy of Kindred's
financial statements and public filings.

As a result of the Company's misrepresentations, Kindred investors have
sustained tremendous losses. On October 10, 2002, after the close of
trading, the Company shocked the market by revealing that it would
withdraw its previous earnings projections for 2002 and revised its
third quarter 2002 estimates. The enormous shortfall was attributed to
increased costs for professional liability claims incurred in fiscal
2001 and 2002.

Specifically, defendants revealed that Kindred will record
approximately $55 million of additional costs for professional
liability claims above its normal provision for the third quarter ended
September 30, 2002.  Approximately two-thirds of the "dramatic increase
in professional liability costs" arose from the Company's operations in
Florida. Defendants revealed that as a result of the increase in
claims, Kindred would likely divest all of its operations in Florida.
In response to the Company's devastating news, Kindred's stock price
dropped by an astonishing 43%, dropping $11.88 to close at $15.84 on
volumes of 10 million shares.

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


METROMEDIA FIBER: Johnson & Perkinson Lodges Securities Suit in S.D. NY
-----------------------------------------------------------------------
Johnson & Perkinson initiated a securities class action on behalf of
all those who purchased Metromedia Fiber Network, Inc. (NASDAQ: MFNX)
common stock between November 25, 1997 and July 25, 2001, inclusive.

The suit, pending in the United States District Court, Southern
District of New York, alleges that defendants violated the federal
securities laws by issuing analyst reports regarding the Company that
recommended the purchase of the Company's common stock and which set
price targets for the Company's common stock, without any reasonable
factual basis.

The complaint further alleges that, when issuing its Company analyst
reports, defendants failed to disclose significant, material conflicts
of interest which it had, in light of defendants' Company reports, to
obtain investment banking business for Salomon Smith Barney.

Furthermore, in issuing Metromedia reports, in which it recommended the
purchase of Metromedia common stock, defendants failed to disclose
material, non-public, adverse information they possessed about
Metromedia.  Throughout the class period, defendants maintained a "BUY"
recommendation on Metromedia in order to obtain and support lucrative
financial deals for Salomon.

The class period begins on November 25, 1997 the date when Salomon
"initiated coverage" of and issued their first report on Metromedia,
and ends on July 25, 2001, the date defendants belatedly downgraded
Metromedia from a "Buy" to a "Neutral."

For more details, contact Dennis J. Johnson or James Mackall by Phone:
1-888-459-7855 or by E-mail: JPLAW@adelphia.net


QUINTILES TRANSNATIONAL: Wechsler Harwood Lodges Securities Suit in NC
----------------------------------------------------------------------
Wechsler Harwood LLP initiated a securities class action in Durham
County, North Carolina on behalf of owners of shares of Quintiles
Transnational Corp. as a result of the offer by Dennis B. Gillings,
Chairman of Quintiles.

The suit alleges that Mr. Gillings's offer of $11.25 per share is
inherently inadequate and unfair and that the directors of Quintiles
are not exercising their fiduciary duties in response to the offer.

For more information, contact David Leifer by Mail: 488 Madison Avenue,
8th Floor, New York, New York 10022 by Phone: 877-935-7400 or by E-
mail: dleifer@whesq.com


TXU CORPORATION: Fruchter & Twersky Commences Securities Suit in TX
-------------------------------------------------------------------
Fruchter & Twersky LLP initiated a securities class action in the
United States District Court, Northern District of Texas, on behalf of
purchasers of the securities of TXU Corp. (NYSE: TXU) between April 25,
2002 and October 11, 2002, inclusive.

The complaint charges the Company and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.  The
Company provides electric and natural gas services, merchant energy
trading, energy marketing, telecommunications and energy-related
services.

The complaint alleges that during the class period, defendants falsely
represented that the Company's European operations were improving and
it was on track to report EPS of $4.35+ and $4.60+ in 2002 and 2003,
respectively.  As a result of these allegedly false statements, Company
stock traded at artificially inflated levels, as high as $56 per share.

Due to this inflation, defendants were able to complete a secondary
offering of 11.8 million shares of common stock, priced at $51.15 per
share and 8.8 million units of FELINE PRIDES (equity linked debt
securities), raising nearly a billion dollars in much needed financing.

Subsequent to the offering, defendants needed to maintain a high stock
price to avoid triggering additional debt and the conversion of
preferred stock into common stock pursuant to a partnership agreement.  
On October 4,2002, the Company issued an earnings warning, indicating
that due to customer attrition and ongoing problems in Europe the
Company would report 2002 EPS of only $3.25.  On this news, the
Company's stock price declined to $27 per share, from more than $40 per
share the prior week.

However, the stock remained inflated as defendants concealed the
extreme liquidity problems from which the Company was suffering.  
Defendants even assured the market that the Company was strong
financially and that the dividend was "sound and secure."  Then, on
October 14,2002, before the market opened, the Company stunned the
market with news that it was cutting its dividend 80%, to $0.125 per
share and would no longer support its European operations.

The Company's stock price immediately collapsed on this news to as low
as $10.10 per share before closing at $12.94, a one day drop of 31%, on
volume of 39 million shares.

For more details, contact Jack G. Fruchter by Mail: One Pennsylvania
Plaza, 19th Floor, New York, New York 10119 by Phone: 212-279-5050 or
800-440-8986 by Fax: 212-279-3655 or by E-mail:
Fruchter@FruchterTwersky.com.  


TXU CORPORATION: Berman DeValerio Commences Securities Suit in N.D. TX
----------------------------------------------------------------------
Berman DeValerio Pease Tabacco Burt & Pucillo initiated a securities
class action against TXU Corporation (NYSE:TXU) and two of its top
officers today, accusing the energy company of defrauding its
shareholders.

The complaint, filed in the US District Court for the Northern District
of Texas, Dallas Division, It seeks damages for violations of federal
securities laws on behalf of all investors who bought Company
securities from January 31, 2002 through October 11, 2002.

The lawsuit claims that the defendants pumped up the company's stock
price by misrepresenting to the investing public the condition of TXU's
European operations throughout the class period.

The complaint says TXU lacked a reasonable basis for its earning
projections for fiscal 2002 and 2003.  Specifically, the defendants
misled or failed to tell investors that:

     (1) TXU's operations in Europe and, specifically, those in the
         United Kingdom were plagued with deficient, inadequate, and
         faulty internal and financial controls;

     (2) TXU's risk management in Europe was virtually non-existent,
         and there was no means of addressing the risk to TXU from the
         UK's unregulated electricity market;

     (3) at least one credit facility worth approximately $500 million
         contained "cross-default" provisions between TXU Europe and
         TXU;

     (4) TXU's UK operations used wholesale electricity "structured
         transactions" to meet earnings goals in violation of Generally
         Accepted Accounting Principles by shifting earnings and
         profits from one quarterly period to another;

     (5) The company's UK operations had entered into and carried long-
         term electricity purchase contracts that were "out of the
         money" by some $700 million; and

     (6) The European operations were impaired and overvalued by
         billions of dollars.

According to the complaint, the truth about TXU began to emerge on
October 4, 2002, when the company said it was revising its earnings
expectations for fiscal 2002 and 2003, and in the spate of news
articles and analyst reports that followed. The company revealed more
problems in an October 7, 2002 conference call with analysts.

TXU's stock plummeted as a result of these disclosures, falling from a
close of $32.90 per share on October 3, 2002 to $13.85 on October 8,
2002.

For more details, contact Michael J. Pucillo or Jay W. Eng by Mail: 515
North Flagler Drive, Suite 1701, West Palm Beach, FL 33401 by Phone:
561-835-9400 by E-mail: lawfla@bermanesq.com


TXU CORPORATION: Patton Haltom Commences Securities Suit in N.D. TX
-------------------------------------------------------------------
Patton, Haltom, Roberts, McWilliams & Greer, LLP initiated a securities
class action in the United States District Court for the Northern
District of Texas on behalf of purchasers of TXU Corp. (NYSE:TXU)
publicly traded securities during the period between April 25, 2002 and
October 11, 2002.

The complaint charges the Company and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.  The
Company provides electric and natural gas services, merchant energy
trading, energy marketing, telecommunications and energy-related
services.

The complaint alleges that during the class period, defendants
represented that the Company could succeed in the competition created
by deregulation.  Defendants then represented that the Company's
European operations were improving, it would succeed competition in the
UK market and it was on track to report EPS of $4.35+ and $4.60+ in
2002 and 2003, respectively.

As a result of these allegedly false statements, Company stock traded
at artificially inflated levels, as high as $56 per share.

Due to this inflation, defendants were able to complete a secondary
offering of 11.8 million shares of common stock, priced at $51.15 per
share and 8.8 million units of FELINE PRIDES (equity linked debt
securities), raising nearly a billion dollars in much needed financing.
Subsequent to the offering, defendants needed to maintain a high stock
price to avoid triggering additional debt and the conversion of
preferred stock into common stock pursuant to a partnership agreement.

On October 4,2002, the Company issued an earnings warning, indicating
that due to customer attrition and ongoing problems in Europe the
Company would report 2002 EPS of only $3.25.  On this news, the
Company's stock price declined to $27 per share, from more than $40 per
share the prior week.  

However, the stock remained inflated as defendants concealed the
extreme liquidity problems from which the Company was suffering.  
Defendants even assured the market that the Company was strong
financially and that the dividend was "sound and secure."

Then, on October 14,2002, before the market opened, the Company stunned
the market with news that it was cutting its dividend 80%, to $0.125
per share and would no longer support its European operations.  The
Company's stock price immediately collapsed on this news to as low as
$10.10 per share before closing at $12.94, a one day drop of 31%, on
volume of 39 million shares.

For more details, contact Rick Adams by Mail: Century Bank Plaza -
Suite 400, 2900 St. Michael Drive, Texarkana, Texas 75503 by Phone:
866-546-9959 x406 (Toll Free) or by E-mail: radams@pattonhaltom.com


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S U B S C R I P T I O N   I N F O R M A T I O N

Class Action Reporter is a daily newsletter, co-published by
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Antonio and Lyndsey Resnick, Editors.

Copyright 2002.  All rights reserved.  ISSN 1525-2272.

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