CAR_Public/990205.MBX             C L A S S   A C T I O N   R E P O R T E R
     
             Friday, February 5, 1999, Vol. 1, No. 1

                           Headlines

ASSISTED LIVING: Milberg Weiss Files Complaint in Oregon
ASSISTED LIVING: Wolf Popper Files Complaint in New York
ASSISTED LIVING: Cohen Milstein Files Complaint in Oregon
ASSISTED LIVING: Leo W. Desmond Files Complaint in Florida
BOEING CO.: Settles Race Suits for $15MM, Admitting No Liability

DELTA AIRLINES: Frequent Flyer Violation Case Settled
DISABLED NC EMPLOYEES: Appeals Court Limits Interest on Judgment
EMERGING MEXICO: Fairness Hearing Scheduled; Fund Will Liquidate
LOEWEN GROUP: Donovan Miller Files Complaint in Pennsylvania
LOEWEN GROUP: Weinstein Kitchenoff Files Suit in Pennsylvania

LOEWEN GROUP: Berger & Montague Files Complaint in Pennsylvania
MALT-O-MEAL: Minneapolis Judge Clears Way for Class Action Suit
MONY GROUP: Responds to Wall Street Journal Article     
MTBE LITIGATION: North Carolina Plaintiffs Sue 13 Oil Companies
NORTHWEST AIRLINES: Not the First to Hold Passengers Captive

PEOPLESOFT, INC.: Spector & Roseman Files Complaint in California
PEOPLESOFT, INC.: Donovan Miller Files Complaint in California
PEOPLESOFT, INC.: Kirby McInerney Files Complaint in California
PEOPLESOFT, INC.: Kaplan Kilsheimer Files Complaint in California
PEPCO: Plaintiff Says Staff Reductions Caused Power Outages

PHILIP MORRIS: Vending Machine Company Price Discrimination
ROYAL & SUN ALLIANCE: Sacked Staff Claim Pounds 25 Million
SERVICE CORPORATION: Cohen Milstein Files Complaint in Texas
SERVICE CORPORATION: Lockridge Grindal Files Complaint in Texas
SWISS BANKS: UBS and Credit Suisse Agree to Pay $1.25 Billion

VISION TWENTY-ONE: Company Takes Exception To Recent Lawsuits

                           *********

ASSISTED LIVING: Milberg Weiss Files Complaint in Oregon
--------------------------------------------------------
Milberg Weiss announced that a class action suit has been
commenced in the United States District Court for the District of
Oregon on behalf of purchasers of Assisted Living Concepts Inc.
(AMEX:ALF) common stock during the period between April 29,  1997
and Feb. 1, 1999.  Members of the Class may, no later than 60
days from Feb. 2, 1999, move the Court to serve as lead plaintiff
of the Class.  

The complaint charges Assisted Living 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 false and misleading statements
about Assisted Living's earnings, profitability and business  
condition and issued financial statements that were materially
false and misleading and violated Generally Accepted Accounting
Principles, thereby misleading investors regarding Assisted
Living's true financial condition and then-current financial
performance. As a result, the prices of Assisted Living's
securities were artificially inflated during the Class Period to
as high as $21-5/8 per share. After seven straight quarters of
reporting allegedly increasing profitability, on Feb. 1, 1999,
the Company announced that it was restating its income for 1997
and the nine months ended Sept. 31, 1998.  As a result of the
restatement, the Company's net income is substantially less than  
previously reported.


ASSISTED LIVING: Wolf Popper Files Complaint in New York
--------------------------------------------------------
Wolf Popper LLP yesterday announced that it filed suit against
Assisted Living Concepts, Inc. (Amex:ALF), accusing the Company
in a securities fraud class action of having fraudulently
overstated its financial  condition beginning with the release on
July 28, 1997 of its financial  statements for the second quarter
of 1997.  

The complaint in the action alleges that ALF violated generally
accepted accounting principles by improperly recognizing payments
from a joint venture as "other income," when those  payments were
in fact only loans.  ALF's misstatements of its operating results  
continued through the third quarter of 1998.  Investors were not
informed of  the true facts until ALF issued a press release on
January 29, 1999,  acknowledging that its prior financial
statements had been misreported and would be restated.  The
restatement wiped out 40% of the Company's total net income in
1997 and almost 50% of the Company's net income for the first
nine  months of 1998.  As a direct result of this announcement,
ALF's stock price  plummeted from $12.625 to $6 per share.  ALF,
and certain of its officers and directors, are named as
defendants in the action.

The class action was brought on behalf of defrauded investors by
Wolf Popper LLP.  Under the federal securities laws, investors
who purchased ALF securities during the period July 28, 1997
through January 29, 1999 have until April 3, 1999 to file a
motion to be a lead plaintiff in the class action.


ASSISTED LIVING: Cohen Milstein Files Complaint in Oregon
---------------------------------------------------------
The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. on
behalf of its client who, on Feb. 3, 1999, filed a lawsuit in the
United States District Court for the District of Oregon, on
behalf of persons who purchased Assisted Living Concepts Inc.
(AMEX:ALF) common stock during the period between July 28, 1997
and Jan. 29, 1999, inclusive.  

The Complaint charges that ALF and certain officers and directors
of that Company during the relevant time period violated Sections
10(b) and 20(a) of the Securities Exchange Act of 1934 by
misrepresenting or failing to disclose material information about
ALF's operations, financial condition and business in an attempt
to protect their executive and/or directorship positions and
their compensations, and to effectuate a merger with American
Retirement Corp.,  which was dependent upon maintaining ALF's
stock price. During the Class  Period, defendants reported record
earnings which were false when made.  Had ALF applied the correct
accounting treatment, the Company's earnings would have been
materially lower in fiscal 1997 and in the first three quarters
of fiscal 1998.  While ALF common stock traded as high as $21-1/4
during the Class Period, the stock plummeted to $6 on Feb. 1,
1999, when the Company announced that it would restate earnings
in its financial statements for fiscal year 1997 and the first
three quarters of 1998.  The Complaint alleges that members of
the Class purchased their ALF securities at artificially inflated
prices.

Purchasers of ALF common stock during the period between July 28,
1997 and Jan. 29, 1999, inclusive, may move the Court no later
than sixty days from Feb. 2, 1999 to serve as lead plaintiff for
the Class.


ASSISTED LIVING: Leo W. Desmond Files Complaint in Florida
----------------------------------------------------------
The Law Office of Leo W. Desmond announced that a class action
lawsuit has been filed against Assisted Living Concepts, Inc.  
(Amex: ALF) and certain of its officers and directors for
violations of the federal securities laws in federal court in
Oregon, on behalf purchasers of Assisted Living Concepts, Inc.
securities between July 28, 1997 and February 1, 1999.  Class
members may, not later than April 2, 1999, move the court to
serve as a lead plaintiff.  


BOEING CO.: Settles Race Suits for $15MM, Admitting No Liability
----------------------------------------------------------------
Aerospace giant Boeing Co. announced plans to pay $15 million to
settle two class-action lawsuits alleging discrimination against
black workers.  The proposed settlement was announced at a joint
news conference by Boeing Chairman Phil Condit, black civil-
rights activist Jesse Jackson and attorneys for the plaintiffs.
Under the proposed consent decree, the settlement would be
distributed among Boeing's 20,000 current and former black
workers.  The aerospace giant employs more than 225,000 people
worldwide.  Boeing admits no liability under the settlement.


DELTA AIRLINES: Frequent Flyer Violation Case Settled
-----------------------------------------------------
A judge has approved the settlement of a class-action lawsuit
that accused Delta Air Lines Inc. of violating its frequent-flier  
program, an airline official said Tuesday.

The settlement, approved late Monday by Cook County Circuit Judge
Judith Cohen, will allow certain members of Delta's frequent-
flier program to receive a package of benefits, depending on the
number of miles they accumulated before July 1, 1988. They would
need to have accumulated at least 40,000 frequent-flier miles to
qualify, Delta spokeswoman Katie Moussouri said.

The lawsuit was filed in 1988 after Delta placed restrictions on
frequent mile usage and seat availability without informing
frequent fliers of the changes.

Under the settlement, certain members of the program can receive
double frequent-flier miles for every Delta domestic flight for a
year, discounts of up to $150 per flight or relaxed restrictions
on the number of frequent-flier mile users on a particular
flight, Moussouri said.  Airline officials estimate 580,000 Delta
customers could benefit from the settlement.

Atlanta-based Delta, the nation's third-largest air carrier,
already has sent a notice to eligible customers. They have until
March 18 to return their proofs of claim, Moussouri said.


DISABLED NC EMPLOYEES: Appeals Court Limits Interest on Judgment
----------------------------------------------------------------
The News Observer in Raleigh, North Carolina reports that state
employees who sued and won millions of dollars in back disability
benefits could have the interest on those payments cut following
a state Court of Appeals ruling.  The appeals court, the Observer
says, ruled Tuesday that a lower court must refigure interest  
payments to employees who were part of the 1990 class-action
lawsuit, using a more conservative interest formula.  Lawyers for
the employees said they will appeal the ruling to the state  
Supreme Court.

The ruling, the Observer relates, involves a lawsuit brought by
disabled state employees who argued that they should not be
subject to lower pension benefits as a result of changes in the
disability program.  All the employees had worked for the state
for five years or more before changes in the disability benefits
program in 1982.

The North Carolina Supreme Court upheld a 1995 lower court ruling
in favor of the employees, saying the changes in their benefits
"impaired their contractual rights."    The Court of Appeals
ruling does not supersede the Supreme Court decision, but does
say the employees do not deserve more than 4% interest on the
amount they were underpaid.  The ruling also threw out interest  
that had been added after the Supreme Court ruling.

"The General Assembly has not authorized the allowance of post-
judgment interest against the state but has provided that all
retirement benefits shall include regular interest of 4%," Judge
Ralph Walker wrote for the court.  

Marvin Schiller, a lawyer for the employees, told the Observer he
thinks the ruling runs counter to the 1997 state Supreme Court
decision.  "For some reason, the judges who ruled on the Court of
Appeals discarded that clear ruling and engaged in their own
jurisprudence journey," Schiller said.

So far, about $75 million - which includes a simple 4% interest
calculation - has been paid out as a result of the lawsuit,
according to the Observer.  As much as $25 million more is
expected to be paid to the estates of deceased state employees
who qualified under the ruling.  The money has been paid out from
a pension trust fund and has not required additional money from
the state's General Fund.  At stake in the latest court battle is
less than $1 million. Schiller estimated a favorable ruling for
state employees would have added up to another 1% or so in
interest.


EMERGING MEXICO: Fairness Hearing Scheduled; Fund Will Liquidate
----------------------------------------------------------------
The Emerging Mexico Fund, Inc. (the "Fund")(NYSE: MEF) announced
today that a federal judge has scheduled a hearing for March 26,
1999 at 10:00 a.m. to consider the fairness of the settlement of
two class action lawsuits pending against the Fund and its
Board of Directors.

Additionally, the Fund announced that the date of the special
stockholders' meeting to be held for the purpose of voting on the
proposed liquidation and dissolution of the Fund has been changed
from March 23, 1999 to March 30, 1999.  The record date for
determining the stockholders' entitled to vote at the meeting
remains January 15, 1999. The Fund's liquidation is subject to
approval of the Fund's stockholders and court approval of the
resolution of the lawsuits.  If stockholders approve the Fund's
liquidation at the meeting and the settlement of the claims is
approved, the Fund's shares of common stock will cease to trade
on the New York Stock Exchange shortly thereafter.


LOEWEN GROUP: Donovan Miller Files Complaint in Pennsylvania
------------------------------------------------------------
A class action lawsuit was filed by Donovan Miller, LLC in the
United States District Court for the Eastern District of
Pennsylvania on behalf of purchasers of Loewen Group, Inc.  
(NYSE:LWN) common stock from Nov. 3, 1996 through Jan. 14, 1999,
inclusive.  

The Complaint alleges that, during the Class Period, Loewen and
certain of its officers and directors violated Sections 10(b) and
20(a) of the Securities Exchange Act of 1934, by among other
things, issuing materially false and misleading statements to the
investing public regarding Loewen's financial results for 1996
through 1998.

Members of the class described above may move the court to serve
as lead plaintiff within 60 days of Feb. 4, 1999.


LOEWEN GROUP: Weinstein Kitchenoff Files Suit in Pennsylvania
-------------------------------------------------------------
Weinstein Kitchenoff Scarlato & Goldman Ltd. Announced that it
commenced a class action lawsuit on behalf of anyone who
purchased the common stock of Loewen Group, Inc. between November
3, 1996 and January 14, 1999.  Loewen is traded on the NYSE and
Toronto Stock Exchange under the symbol LWN.

The lawsuit has been commenced in the United States District
Court for the Eastern District of Pennsylvania. It charges Loewen
and certain of its officers and directors with violating the
federal securities laws by issuing false and misleading
statements about Loewen's financial condition, and by
manipulating Loewen's financial statements.

When the truth about Loewen was finally disclosed, Loewen's stock
price dropped from a high of $35.50 during the Class Period to
$4.81 per share on January 15, 1999.


LOEWEN GROUP: Berger & Montague Files Complaint in Pennsylvania
---------------------------------------------------------------
Berger & Montague, P.C. announced that it has filed a Complaint
alleging violations of Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934.  The action, seeking class action status,
was filed in the United States District Court for the Eastern
District of Pennsylvania on behalf of purchasers of Loewen Group,
Inc. (NYSE: LWN) common stock during the period from November 3,
1996, through January 14, 1999, inclusive.

The Complaint alleges that during the Class Period, defendants
issued false and misleading statements concerning the quality of
certain acquisitions and its ability to integrate acquired
companies and assets into Loewen Group's continuing operations.

Moreover, during the Class Period, at least two Loewen Group
subsidiaries specializing in pre-need cemetery and funeral
contracts were restricted from accepting new contracts.  The
Loewen Group subsidiaries had acted fraudulently and
incompetently by, among other practices, improperly withdrawing
monies from trust funds and amending signed contracts without
customer consent.  These practices enabled Loewen to materially
inflate its earnings.

When the market learned the truth about Loewen, the price of the
common stock fell from a Class Period high of $35.50 to close at
$4.81 on January 15, 1999.


MALT-O-MEAL: Minneapolis Judge Clears Way for Class Action Suit
---------------------------------------------------------------
A judge in Minneapolis has cleared the way for a national class-
action lawsuit against Minnesota-based Malt-O-Meal cereals.  Last
year, several million pounds of the Company's cereal were
recalled because of salmonella contamination.  Plaintiffs'
attorney Charles Zimmerman says be hopes the matter can be
resolved out of court.  He says he believes that's what the
company would want also, according to United Press International,
adding that the Malt-O-Meal case and other more recent outbreaks
of food borne illness are part of a dangerous trend.  


MONY GROUP: Responds to Wall Street Journal Article     
---------------------------------------------------
Following is a statement issued yesterday by The MONY Group Inc.,
in response to issues raised in an article in yesterday's
editions of The Wall Street Journal:

   1. We are not aware of any "investigation" by the Securities
      and Exchange Commission in regard to the issues raised in
      the article.

   2. Our accounting practices are appropriate and in accordance
      with regulatory requirements.  The most recent New York
      State Department of Insurance audit found no accounting
      issues.  Our outside auditors reached the same favorable  
      conclusion.

   3. The accounting issues, which are without merit, were
      included in a 1995 class-action lawsuit that was dismissed
      in 1997.

   4. The article incorrectly states that two notes were
      purchased from PriceWaterhouseCoopers.  MONY was a minority
      purchaser of notes from Anthony Crane Rental in 1994 and
      Alpine Engineered Products in 1995 in private placements
      participated in by other major insurance companies, as is
      common practice.  The notes were paid in full.

"There has been a continuing effort since the early 1990s to
"shop" these false allegations to regulatory authorities and the
media. We remain confident that additional scrutiny of any of
these issues would be resolved in our favor," stated Michael I.
Roth, chairman and CEO of The MONY Group Inc.

An SEC spokesman contacted by Reuters would neither confirm nor
deny the reported investigation.  Shares of MONY slipped about 4%
on Thursday after the report, falling $1.125 to $26.875.  
Additionally, Reuters reported, PriceWaterhouseCoopers was not
immediately available for comment.


MTBE LITIGATION: North Carolina Plaintiffs Sue 13 Oil Companies
---------------------------------------------------------------
Environmental and health organizations are hailing a new
citizens' lawsuit filed in New Hanover County Superior Court
against MTBE contamination of private water wells in North  
Carolina.  The suit, filed in January, names 13 oil companies and
gasoline distributors.  Five individuals are plaintiffs in the
class-action lawsuit.  

"The lawsuit joins others in California and Maine that use MTBE
as a platform to attack the oil industry over soil and
groundwater contamination," the Wilmington Morning Star reported.  
"The lawsuits allege the companies conspired to put the chemical
into a system it knew to be leaking, without conducting adequate
research on its potential health risks," the newspaper said.

MTBE is methyl tertiary butyl ether.  It has been widely used by
oil companies in reformulated gasoline for clean-air programs.  
Almost since its introduction, however, MTBE has been suspected
of causing health problems and, in recent years, of widespread
water contamination.  The North Carolina lawsuit seeks to force
defendant oil companies to pay for testing more than 800,000
private wells in the state for possible MTBE water contamination.  
The lawsuit also asks that the oil companies pay for cleanup of
water and soil contamination across the state.

Previously, some North Carolina residents claimed that MTBE
contamination of their water wells reached more than 2,000 parts
per billion.  State officials are working to set a standard of 70
parts per billion.  The U.S. Environmental Protection Agency has
recommended that MTBE be limited to 20 to 40 parts per billion in
water.  


NORTHWEST AIRLINES: Not the First to Hold Passengers Captive
------------------------------------------------------------
Northwest Airlines and the Detroit Metro Airport are facing a
class-action lawsuit, alleging false imprisonment and negligent
infliction of emotional distress.  "Heck, what about kidnapping?"
quips Florida Today in a business briefing column.  It could be
worse, the FT opines, relating that last year, passengers sued
over being kept for hours in a plane on an August day when the
temperature inside reached 120 degrees.  "That airline settled,"
FT said.

As widely reported, Northwest passengers were trapped for nine,
10, 11 hours; some were forbidden to stand up or walk under
threat of arrest; many got nothing to eat or drink; hundreds were
aboard and the toilets weren't working.  Passengers on dozens of
Northwest Airlines jets at Detroit Metro Airport felt like
hostages with no help in sight in the early January blizzard.


PEOPLESOFT, INC.: Spector & Roseman Files Complaint in California
-----------------------------------------------------------------
A class action lawsuit has been filed in the United States
District Court Northern District of California on behalf of all
purchasers of PeopleSoft, Inc. (Nasdaq: PSFT) common stock during
the period of February 5, 1997 through January 29, 1999 (the
"Class Period") by the law firm of Spector & Roseman, P.C.

The Complaint alleges that PeopleSoft and certain officers and
directors of the Company during the Class Period violated
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.  
The Complaint charges that the defendants issued a series of
materially false and misleading statements concerning the  
Company's business, operations, and its ability to maintain 45%
to 65% revenue growth through 1999 notwithstanding an increase in
competition and a slowdown in orders by its customers due to them
delaying purchases of PeopleSoft applications as they spent money
to fix Y2K problems.  Because of the issuance of these false and
misleading statements, the price of PeopleSoft common stock  
was artificially inflated during the Class Period.  During this
time when the price of PeopleSoft's stock was artificially
inflated, insiders of the Company unloaded their personal
holdings of PeopleSoft stock, selling more than 8.2 million
shares realizing gross proceeds in excess of $232 million.

The Complaint alleges that on January 29, 1999, the Company
disclosed that, among other things, it would report lackluster
fourth quarter results, that year-to-year revenue growth would be
only 20% to 30% vs. the 65% previously projected during the Class
period, that the Company might restate its 1996, 1997 and 1998
results, and that it was going to take a $175 million charge to  
spin-off a subsidiary which it was using to transfer research
costs to an affiliate company, Momentum, which was nothing more
than a shell.  As a result of this announcement, the price of
PeopleSoft stock collapsed from a Class Period high of $55-15/16
to $18-1/8 per share.

The plaintiff in this action seeks to recover damages on behalf
of all purchasers of PeopleSoft common stock during the Class
Period.  Members of the Class described above, may, no later than
sixty days from January 29, 1999, move the Court to serve as lead
plaintiff of the Class.


PEOPLESOFT, INC.: Donovan Miller Files Complaint in California
--------------------------------------------------------------
A class action lawsuit was filed by Donovan Miller LLC in the
United States District Court for the Northern District of
California on behalf of purchasers of PeopleSoft, Inc.
(NASDAQ:PSFT) common stock from February 4, 1997 through January
28, 1999, inclusive.

The Complaint alleges that, during the Class Period, PeopleSoft
and certain of its officers and directors (collectively, the
"Defendants") violated Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934, by among other things, issuing materially
false and misleading statements to the investing public regarding
PeopleSoft's financial results for 1996 through 1998.

Members of the class described above may move the court to serve
as lead plaintiff within 60 days of January 29, 1999.


PEOPLESOFT, INC.: Kirby McInerney Files Complaint in California
---------------------------------------------------------------
On February 4, 1999, Kirby McInerney & Squire, LLP filed a class
action lawsuit in the United States District Court for the
Northern District of California against Peoplesoft, Inc. (NASDAQ:
PSFT) and certain of its officers and directors.  The lawsuit was
filed on behalf of all purchasers of Peoplesoft securities
between February 5, 1997 and January 28, 1999, inclusive.  

The Complaint asserts that defendants violated Section 10(b) of
the Securities Exchange Act of 1934 and SEC Rule 10b-5.  The
lawsuit alleges that defendants' material misrepresentations and
omissions caused the Company's stock to trade at artificially
inflated levels during the Class Period, and allowed Peoplesoft's
officers and directors to sell more than $200 million of their
own Peoplesoft holdings at these artificially inflated prices.
When Peoplesoft ultimately admitted that its revenue growth
slowed and it might have to restate two years of financial
statements, the Company's stock price declined from a Class
Period high of more than $55 per share to below $18.50 per share.

The Plaintiff seeks to recover damages on behalf of all class
members who purchased Peoplesoft securities during the Class
Period, excluding the defendants and their affiliates.  Members
of the Class described above, may, not later than March 30, 1999,
move the Court to serve as lead plaintiff of the Class.


PEOPLESOFT, INC.: Kaplan Kilsheimer Files Complaint in California
-----------------------------------------------------------------
Kaplan, Kilsheimer & Fox LLP has filed a Class Action against
PeopleSoft, Inc. (Nasdaq: PSFT) and certain of its officers and
directors in the United States District Court for the Northern
District of California.  The suit is brought on behalf of all
persons or entities who purchased the common stock of PeopleSoft
between February 5, 1997 and January 28, 1999, inclusive.

The complaint charges PeopleSoft 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
represented to the investment community that PeopleSoft was still
enjoying strong growth in orders and was on track to continue
45%-65% revenue growth through 1999.  As a result, PeopleSoft's
stock price was artificially inflated to as high as $55-15/16
during the Class Period from the $24 range at the beginning of
the Class Period.  When PeopleSoft ultimately admitted that its
revenue growth had slowed and that it might restate its 1996-1998
financial statements, its stock declined to as low as $18-1/8 on
volume of 20.5 million shares.  While investors, who paid as high
as $55-15/16 for PeopleSoft stock, have lost millions, the top
officers and directors of PeopleSoft sold 8.2 million shares for
proceeds of $232 million before the bad news was disclosed.

Members of the Class may move the court, no later than 60 days  
from January 29, 1999, to serve as lead plaintiff for the class.  


PEPCO: Plaintiff Says Staff Reductions Caused Power Outages
-----------------------------------------------------------
A class-action suit has been filed against PEPCO on behalf of  
families that went for days without the company's services during
the recent ice storm.  Attorney Wayne Cohen told United Press
International that he filed the complaint for a Montgomery County
couple, saying PEPCO brought the problem on itself by reducing
its staff size.  The ice storm left some people without power for
more than a week.  Cohen says he's not sure if other lawyers will
be filing suits, but he'd be glad to work in conjunction with
them.


PHILIP MORRIS: Vending Machine Company Price Discrimination
-----------------------------------------------------------
Six cigarette vending machine companies have filed a 100-Million-
dollar class action suit against Philip Morris for alleged price
discrimination.  The lawsuit, according to United Press
International, claims that Philip Morris discriminates against
the vending machine owners by giving rebates, buy-backs and other
promotional fees to other merchants that result in lower
wholesale cigarette prices.  The suit, filed in Nashville, claims  
those rebate practices hurt vending machine companies.


ROYAL & SUN ALLIANCE: Sacked Staff Claim Pounds 25 Million
----------------------------------------------------------
Toyal & SunAlliance today faces a claim for pounds 25m from
former employees in a British test case with critical
implications for the way companies conduct take-overs and
mergers.   The Manufacturing Science Finance union is claiming
compensation on behalf of 5,000 staff who lost their jobs when
Royal Insurance merged with Sun Alliance to form the new group.

Union lawyers today start a "class action" proceeding before the
Liverpool Employment Tribunal claiming that management defied a
European directive when it failed to consult employees before
making them redundant, according to a report appearing in the
Independent.  

If the company is successful other merged groups such as CGU and
Norwich Union will face similar claims together amounting to
another pounds 18m.  The case will also set a precedent for all
mergers and take-overs in Britain.  Roger Lyons, general
secretary of MSF, said yesterday that if the union failed in its
litigation, the Government would be forced to introduce fresh law
to ensure that the UK abided by the directive.  The European
statute stipulates that there should be three months of
consultation with employees if a merger will mean job losses or
closures.   Mr Lyons said that the 5,000 sacked workers at RSA
first heard their jobs were under threat when the company let the
figure slip on Radio Four's Today programme.  "They choked on
their Rice Krispies.  This is not the way to tell people they are
going to lose their jobs."

Lyons pointed out that the directive on collective redundancies
states that workers' representatives should be involved in the
decision-making process before there was any "contemplation" of
redundancies.  The union is concerned that the tribunal on
Merseyside might adhere to another legal ruling which found that
the amalgamation of Royal Insurance and Sun Alliance was a
"transfer of shares", not a merger, and therefore not susceptible
to European law.  "If that were the case, there would be a
glaring loophole in British law which is duty-bound to reflect
the European directive," he said.  If the decision goes against
the union, Mr Lyons told the Independent that he would complain
to the European Union under Article 169 of the Treaty of Rome.


SERVICE CORPORATION: Cohen Milstein Files Complaint in Texas
------------------------------------------------------------
The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. filed
a lawsuit in the United States District Court for the Southern
District of Texas on behalf of persons who: (1) purchased Service
Corporation International (NYSE:SRV) securities in the open
market during the period July 23, 1998 through January 26, 1999;
or (2) who exchanged securities issued by Equity Corporation
International (NYSE:EQU) for Service Corporation International  
securities in the merger of those two companies which closed on
January 19, 1999.

The Complaint charges that defendants violated the U.S.
securities laws by issuing materially false and misleading
statements concerning the Company's operations and prospects for
profitability. Prior to the disclosure of negative information,
Service Corp. sold $600 million worth of notes and completed the  
merger with Equity using $576 million worth of its artificially
inflated common stock.

Members of the Class may move the Court, no later than 60 days
from January 26, 1999, to serve as lead plaintiff for the Class.


SERVICE CORPORATION: Lockridge Grindal Files Complaint in Texas
---------------------------------------------------------------
The law firm of Lockridge Grindal Nauen & Holstein P.L.L.P. of
Minneapolis, Minnesota,  on behalf of certain investors of
Service Corporation International (NYSE:SRV) announced that, on
February 3, 1999, a securities fraud class action lawsuit was
filed in the United States District Court for the Southern  
District of Texas against Service Corporation International and
certain of its officers and directors (collectively the
"Defendants").  The lawsuit has been brought on behalf of all
persons who: (1) purchased Service Corporation International
securities in the open market during the period July 23, 1998  
through January 26, 1999; or (2) who exchanged securities issued
by Equity Corporation International ("ECI") for Service
Corporation International securities in the merger of those two
companies which closed on January 19, 1999.

The Complaint charges that defendants violated the U.S.
securities laws by issuing materially false and misleading
statements and by omitting to disclose material facts required to
be disclosed in order to make the statements issued not
materially false and misleading throughout the Class Period
stated above and in Service Corporation International's public
filings related to the ECI merger.

Any member of the proposed class who desires to be appointed lead
plaintiff in this action must file a motion with the Court no
later than sixty (60) days from January 26, 1999.


SWISS BANKS: UBS and Credit Suisse Agree to Pay $1.25 Billion
-------------------------------------------------------------
Jewish groups, Holocaust survivors and Swiss banks finalized
their $1.25 billion settlement late last week, moving one step
closer to compensating victims of the Nazis.  The settlement ends
two years of litigation that has dominated U.S.-Swiss relations
and marred the image of Switzerland, which declared neutrality
during World War II.

The parties in the class-action lawsuit, including the Swiss
banks UBS AG and Credit Suisse, met Thursday and talked until 1
a.m. Friday in U.S. District Judge Edward Korman's chambers, Elan
Steinberg, executive director of the World Jewish Congress, told
the Cincinnati Enquirer.  "This is a great victory for all
Holocaust survivors," Mr. Steinberg said.  "All will be treated
equally and no favor will be shown to those who happened to
haven't signed with a lawyer."

Jewish groups say Holocaust victims deposited money in Swiss
banks as the Nazis gained power in Europe, expecting to retrieve
it later.  But heirs and survivors say the banks stonewalled,
claiming they could not find accounts or in some cases requesting
nonexistent death certificates of victims killed in  
Nazi camps.

The judge will now schedule a fairness hearing to review the
agreement and formally approve it, said Cincinnati attorney
Stanley Chesley, counsel for the World Jewish Restitution
Organization, an umbrella group for nine Jewish organizations. He
said he hopes approval will come within the next several months.  
"I'm very proud," Mr. Chesley told the Enquirer.  "This is a
landmark settlement."  The banks already have made a $250 million
deposit in an escrow account, Mr. Steinberg said. The rest of the
$1.25 billion is to be deposited in the next three years.

The settlement, reached in August, ensures that Mr. Korman will
appoint a special master to consider all proposals for the
distribution of the money and to identify the beneficiaries, Mr.
Steinberg said.

The court will notify potential claimants through newspaper ads
and other public means throughout the world, Mr. Steinberg said.
He said those who consider themselves eligible will then be asked
to call a toll-free number or write to a given address.


VISION TWENTY-ONE: Company Takes Exception To Recent Lawsuits
-------------------------------------------------------------
Vision Twenty-One, Inc. (NASDAQ:EYES), a leading service provider
in the eye care sector, briefly addressed the securities class
action complaints recently filed against the Company. CEO and
President Theodore N. Gillette stated: "We strongly disagree  
with and deny the allegations contained in the lawsuits and we
will vigorously defend our position."  Consistent with Company
policy, Mr. Gillette said he was unable to comment further on the
proceedings.


                           *********

                           *********

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

Class Action Reporter is a daily newsletter, co-published
by Bankruptcy Creditors' Service, Inc., Princeton, NJ, and Beard
Group, Inc., Washington, DC.  Peter A. Chapman, Editor.

Copyright 1999.  All rights reserved.  ISSN XXXX-XXXX.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.   

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.   
  
The CAR subscription rate is $575 for six months delivered via
e-mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each.  For subscription information, contact Christopher
Beard at 301/951-6400.  
       
                  * * *  End of Transmission  * * *