American Cemwood Corp.

Preliminary approval has been granted to a $75 million insurance settlement in the class action lawsuit filed against American Cemwood Corp. The suit alleged defective roof shakes, and also listed companies Weyerhaeuser Ltd. and MacMillen Bloedel of Canada as defendants. This settlement will bring the total pay out in the case to $140 million dollars. The settlement "represents a remarkable result, because for several years American Cemwood has been an insolvent and defunct company whose only assets are its insurance policies," according to lead attorney James Brown. Under the terms of settlement, those with verified claims and qualifying damages will be provided with cash payments of $150 per roof-field square. The shakes in question in this case were sold under the brand names of Cemwood Shakes, Permatek Shakes, Permatek II Shakes, Royal Shakes, Cascade Shakes, Trieste Tile and Pacific Slate. (Aug-13-03) [HOOVERS]