Opening Statements Set in Case Against Texaco Executives

4/20/98

NEW YORK (Reuters) - Opening statements are scheduled to

begin Wednesday in the case against two former Texaco Inc.

executives accused of allegedly destroying key documents sought

in a high-profile racial discrimination suit.

Robert Ulrich, formerly the company's treasurer, and Richard

Lundwall, the former senior coordinator of personnel services in

Texaco's finance department, will be tried in White Plains,

N.Y., federal court on obstruction of justice and conspiracy

charges.

If convicted of all counts, both men face a possible maximum

prison term of 15 years and $500,000 in fines. The jury trial,

which will be held before U.S. District Judge Barrington Parker

Jr., is expected to last several weeks.

The discrimination case resulted in Texaco's agreement last

year to pay a record $176.1 million to black employees and to

diversify its work force and business activities. The settlement

followed widespread publicity over tapes of Texaco managers

making racist remarks and discussing the shredding of

potentially damaging internal documents.

The case against the men stems from Lundwall's own decision

to provide evidence against himself and others in the

discrimination case against Texaco.

In that class action suit, filed in 1994, a group of black

employees alleged that Texaco discriminated against them in

promotions and pay.

Lundwall had secretly taped conversations between himself

and others in which they discussed destroying documents

requested by the plaintiffs. When Lundwall was dismissed by

Texaco in a downsizing move, he gave the tapes to the

plaintiffs' lawyers.

After the tapes were made public in court proceedings,

Texaco agreed to pay $176.1 million in the largest settlement of

a race discrimination lawsuit in history.