Alcoa Asks Judge to Order Asbestos Lawyers to Pay $500T ------------------------------------------------------- Published November 29, 2002 Alcoa Inc.'s Reynolds Metal unit persuaded a Texas state judge to impose a $500,000 fine on lawyers accused of filing duplicate asbestos lawsuits in an attempt to find a more sympathetic judge. Alcoa sought sanctions against Provost & Umphrey, a Beaumont, Texas- based firm that represents contract workers who claim they were sickened by cancer-causing asbestos at company work sites. The company said the multiple lawsuits were "a deliberate attempt to forum shop and circumvent" court rules. Judge Nanette Hasette in Corpus Christi ruled Nov. 7 that the workers' lawyers "abused the judicial process" and "disrespected the integrity of our judicial system." The judge's order doesn't specify when the fine must be paid. Since 1999, 7,000 asbestos suits have been brought against Alcoa, according to the company's most recent filing with the Securities and Exchange Commission. Asbestos litigation costs Alcoa about $1 million a year, the company said. Asbestos lawsuits have already pushed at least 60 U.S. companies into bankruptcy, according to the Rand Institute. In Texas, Alcoa claimed the workers' lawyers tried to circumvent rules requiring random assignment of cases by filing four similar single- plaintiff lawsuits in three different courts within one hour on Feb. 27. According to the company, the suits alleged "the very same claims and damages against" Alcoa and 50 other defendants. Once the suits were assigned to judges, Provost & Umphrey sought to consolidate the suits into a single case and added the claims of 300 more workers. "We obviously disagree with the court's order," said Provost & Umphrey partner Bryan Blevins. "We are evaluating our options, including appeal." Shares of Pittsburgh-based Alcoa, the world's largest aluminum maker, rose 82 cents to $23.17 at 2:54 p.m. in composite trading on the New York Stock Exchange. Among the companies that have filed for bankruptcy over asbestos lawsuits are Kaiser Aluminum Corp., USG Corp., Federal- Mogul Corp., and W.R. Grace & Co. Owens Corning, the largest U.S. maker of insulation, sought protection from creditors in 2000, after agreeing to pay more than $5 billion to settle lawsuits. COMPANY PROFILE Alcoa Inc. (NYSE: AA) 201 Isabella St. at 7th St. Bridge Pittsburgh, PA 15212-5858 Phone: 412-553-4545 Fax: 412-553-4498 http://www.alcoa.com Employees : 129,000 Revenue : $ 22,859,000,000 Net Income : $ 908,000,000 Assets : $ 28,355,000,000 Liabilities : $ 17,741,000,000 (As of December 31, 2001) Description: The company is the world's #1 producer of alumina (aluminum's principal ingredient, processed from bauxite) and aluminum. Alcoa's vertically integrated operations include bauxite mining, alumina refining, and aluminum smelting; primary products include alumina and its chemicals, automotive components, and sheet aluminum for beverage cans. Major markets include the packaging, automotive, construction, and aerospace industries. Alcoa has gained presence in China's aluminum market by forming a strategic alliance with Aluminum Corporation of China (Chalco).