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Lloyds General Corporate Litigation Reporter

Largest Pending Corporate Litigation Claims

MasterCard Inc., Altria Group Inc., and Deutsche Telekom AG are the top three companies that face the largest claims for the Corporate Litigation Reporter publication period Jan. 1 to July 24, 2007.

Company Remarks
MasterCard Inc.
US$28.22 billion
Published June 15, 2007
The hearing on final approval of the settlement agreements with respect to the action entitled Schwartz v. Visa Int'l Corp., et al., has been scheduled for Nov. 2, 2007.

On Aug. 6, 2004, the court awarded plaintiff's attorneys' fees and costs in the amount of US$28.22 billion to be paid equally by MasterCard and Visa. Accordingly, during the three months ended Sept. 30, 2004, MasterCard accrued amounts totaling US$14.11 billion.
Altria Group Inc.
US$14 billion
Published May 10, 2007
The trial court’s August 2006 Final Judgment and Remedial Order in favor of the U.S. government remains stayed pending the appeals filed by certain defendants, including Altria Group, Inc. and its wholly owned subsidiary, Philip Morris USA Inc.

In June 2005, the government filed with the trial court its proposed final judgment seeking remedies of US$14 billion, including US$10 billion over a five-year period to fund a national smoking cessation program and US$4 billion over a 10-year period to fund a public education and counter-marketing campaign.
Deutsche Telekom AG
US$7.1 billion
Published May 16, 2007
Deutsche Telekom AG continues to contest the Federal Republic’s claims for damages of approximately EUR5.2 billion plus interest, as indicated in its statement of claims received on Aug. 2, 2005.

The amount includes contractual penalties of EUR1.1 billion relating to the allegation that the agreement of the Federal Republic was not sought prior to the execution of certain subcontractor agreements
Corning Inc
US$5 billion
Published June 8, 2007
Seoul Guarantee Insurance Co. and 13 other creditors are seeking total damages of KRW4.73 trillion or approximately US$5 billion, plus penalty interest, from Samsung Group and affiliates, including Samsung Corning Precision Glass Co., Ltd. and Samsung Corning Co. Ltd.
DaimlerChrysler AG
US$4.74 billion
Published April 11, 2007
DaimlerChrysler AG’s subsidiary, DaimlerChrysler Financial Services AG, continues to face arbitration proceedings filed by the Federal Republic of Germany, which submitted its statement of claims in August 2005.

The Federal Republic of Germany is claiming lost revenues of EUR3.51 billion plus interest (EUR236 million through July 31, 2005 plus 5 percent per annum over the respective base rate since then) for the period Sept. 1, 2003, through Dec. 31, 2004.

The Federal Republic of Germany also claims contractual penalties of about EUR1.65 billion through July 31, 2005 plus interest, EUR107 million through July 31, 2005 plus five percent per annum over the respective base rate since then.
Biovail Corp.
US$4.6 billion
Published May 17, 2007
Biovail Corp. continues to pursue its US$4.6 billion damages claim against S.A.C. companies and other defendants for an alleged stock market manipulation scheme that affected the market price of the Company's shares and violations of the New Jersey Racketeer Influenced and Corrupt Organizations Act.
Reynolds American Inc
US$4.1 billion
Published April 17, 2007
Trial for the case filed by the Attorney General of Canada against R.J. Reynolds Tobacco Holdings, Inc., a wholly owned operating subsidiary of R.J. Reynolds Tobacco Co., R. J. Reynolds Tobacco International, Inc., R. J. Reynolds Tobacco Co. (Puerto Rico), and Northern Brands International, Inc., an inactive, indirect subsidiary of Reynolds American Inc. is set to be no later than Dec. 31, 2008.

As filed, the Attorney General's Statement of Claim seeks to recover CDN1.5 billion in compensatory damages and CDN50 million in punitive damages, as well as equitable and other forms of relief.

In the companies' Creditor Arrangement Act proceeding, the Attorney General amended and increased Canada's claim to CDN4.3 billion.
Exxon Mobil Corp.
US$3.5 billion
Published April 27, 2007
The Alabama Supreme Court, on Feb. 6, 2007, heard oral arguments on Exxon Mobil Corp.’s appeal to reverse a US$3.5 billion punitive damages award, which resulted from a lawsuit over payment of Mobile Pay Project royalties to the State of Alabama.
Deutsche Telekom AG
US$3 billion
Published May 16, 2007
Deutsche Telekom AG continues to contest Vivendi Universal S.A.'s claims related to the Polska Telefonia Cyfrowa contract.

In April 2005, the Company and its German subsidiary, T-Mobile Deutschland GmbH, were served a complaint, which was filed by Vivendi with the Tribunal de Commerce de Paris seeking a declaratory judgment that contractual negotiations had been maliciously terminated in September 2004 causing Vivendi to incur EUR2.2 billion in damages
Deutsche Bank AG
US$2.7 billion
Published May 24, 2007
Deutsche Bank AG continues to contest a lawsuit filed by KGL Pool GmbH, a subsidiary of the Kirch Group, in relation to Dr. Rolf E. Breuer’s Feb. 4, 2002 statement that the Kirch Group was in breach of laws and that the statement was financially damaging to Kirch.

The Company received a letter claiming damages in the amount of EUR2 billion plus interest. In the letter, the causality in respect of the basis and scope of the claimed damages was not substantiated.
Corning Inc.
US$2.64 billion
Published April 10, 2007
Samsung Corning Precision Glass Co., Ltd., which is 50% owned by Corning Inc., and Samsung Corning Co. Ltd. are co-defendants in a lawsuit pending in the courts of Korea filed by Seoul Guarantee Insurance Co. and 14 other creditors.

In the lawsuit, SGI and Creditors allege that, in the event that the proceeds of sale of the SLI shares is less than 2.45 trillion Korean won, approximately US$2.64 billion, the Samsung affiliates allegedly agreed to compensate SGI and Creditors for the shortfall, by other means, including Samsung affiliates' purchase of equity or subordinated debentures to be issued by SGI and Creditors. Any excess proceeds are to be distributed to the Samsung affiliates.
Ford Motor
US$2 billion
Published May 16, 2007
Navistar International Corp. has filed an amended complaint against Ford Motor Co. seeking more than US$2 billion in damages, Reuters reports.

According to the source, Navistar's amended complaint stemmed from hints that Ford was planning to develop its own diesel engine for release prior to 2012.
Delta & Pine Land Co.
US$2 billion
Published May 24, 2007
The proceedings initiated by Delta & Pine Land Co. against Monsanto Co. for terminating efforts to gain government approval of the May 8, 1998 Merger Agreement remains stayed pending the resolution of two interlocutory appeals filed by D&PL.

On Jan. 18, 2000, after unsuccessful negotiations, D&PL re-filed its suit. D&PL seeks in excess of US$1 billion in compensatory and US$1 billion in punitive damages for breach of the 1998 Merger Agreement.
The Boeing Co
US$2 billion
Published June 6, 2007
A September 2007 trial has been set for Boeing Satellite Systems International, Inc.’s cross-complaint against ICO Global Communications (Operations), Ltd., ICO Global Communications (Holdings) Limited, and Eagle River Investments, LLC, in the Los Angeles County Superior Court.

n Sept. 16, 2004, ICO filed a cross-complaint alleging breach of contract, and other claims, and seeking recovery of all amounts paid to BSSI under the contracts, which are alleged to be approximately US$2 billion.
Allianz SE
US$2 billion
Published July 6, 2007
Allianz Global Risks US Insurance Co., a subsidiary of Allianz SE, awaits the arbitration ruling contemplated under the Certificate of Reinsurance in a May 24, 2007 announcement of the unit’s reinsurer, SCOR.

In connection with the terrorist attack of Sept. 11, 2001, the Company recorded net claims expense for the Allianz Group of approximately EUR1.5 billion in respect of all insurance and reinsurance policies, including the Silverstein policy.
Morgan Stanley
US$1.578 billion
Published March 9, 2007
The District Court of Appeal for the Fourth District of Fla. on June 28, 2006, heard oral argument on Morgan Stanley’s appeal of the Circuit Court of the 15th Judicial Circuit for Palm Beach County, Fla.’s final judgment issued on June 23, 2005 awarding US$1.578 billion to Coleman (Parent) Holdings Inc. (CPH).
Valassis Communications Inc.
US$1.5 billion
Published March 9, 2007
Discovery on Valassis Communications Inc.'s monopoly lawsuit filed against News America Inc., News America Marketing FSI Inc. and News America Marketing In-Store Services Inc., commenced on Nov. 20, 2006, is underway.

The complaint alleges damages in excess of US$1.5 billion, injunctive relief and costs for violation of the Sherman Act.
Royal Dutch Shell plc
US$1.2 billion
Published May 17, 2007
Royal Dutch Shell plc said, that as of Dec. 31, 2006, it recorded nine additional Nicaraguan judgments entered for lawsuits on dibromochloropropane (DBCP) exposure, in which the judgments were entered in the collective amount of about US$1.2 billion in favor of 1,737 plaintiffs jointly against Shell Chemical Co. and three other named defendants.
Exar Corp.
US$1 billion
Published July 6, 2007
The San Diego County Superior Court has yet to enter a ruling on the motion to dismiss Ericsson Inc.’s claims against Vicor Corp., a former customer of Exar Corp

Ericsson claimed that its damages exceed US$1 billion.
Computer Sciences Corp.
US$1 billion
Published July 6, 2007
Computer Sciences Corp. says in its latest annual report filed with the U.S. Securities and Exchange Commission that it has a legal basis for pursuing recovery of Requests for Equitable Adjustment claims and that collection is probable with interest on the claims accruing but not being recognized.

The Company has converted 16 submitted REAs to interest bearing claims under the Contract Disputes Act totaling in excess of US$1 billion on two U.S. Federal contracts.

Information presented herein details the biggest monetary demands as reported in the Lloyd's Corporate Litigation Reporter. To get the news when it happens, as it happens, subscribe to Lloyd's Corporate Litigation Reporter here.