BYLINE: States News Service

DATELINE: WASHINGTON, November 18, 1991, Monday

	Dallas investor Harold Simmons filed a complaint last week against 
Maxxam Inc. of Houston and its directors regarding a Maxxam deal with 
Federated Development Co. under which they abandoned a real estate 
development project in Rancho Mirage, Calif.

 	Filed in the Delaware Court of Chancery on behalf of Maxxam 
shareholders, the suit claims that Maxxam and the directors breached 
their fiduciary duty and damaged shareholder values, and seeks to rescind 
the transaction, according to a Securities and Exchange Commission 
filing.
 

 Copyright 1991 The Chronicle Publishing Co.