Peloton last week told investors that it was liquidating its $2 billion ABS Fund after lender banks pulled back on credit. It held out hopes that it could salvage its second fund, the $1.6 billion Multi-Strategy Fund, even though some 40 percent of that fund's assets were invested in the ABS Fund.

Today, however, the fund told investors that the Multi-Strategy Fund is being liquidated in coming days, with the proceeds returned to investors, the source said.

It is unclear at this point what proceeds, if any, investors will get from the liquidation of the two funds, the company told investors.

The Merlin Law Group has already fought for hundreds of people unhappy with how their insurance companies handled their Katrina claims. Attorney Chip Merlin says he worries about the thousands who have yet to join the battle.

"There's a whole bunch of people who've filed claims and they've been paid," said Merlin. "Sometimes they've been paid a little bit, sometimes they've been paid a lot. But they're still owed some more. Insurance companies bank on people just giving up."

Beginning February 29th, the Merlin Law Group will start running print and television ads letting people know the clock it ticking down.

"The deadline effectively stops people's ability to collect from the insurance company," Merlin said. "You have to have a lawsuit filed by that time. It doesn't mean the lawsuit is over with. It just means you have to have it filed."

Merlin says he's not concerned about where people who lost their homes and businesses go to find legal representation, just that they go and quickly.

"I don't think it's right for insurance companies to cheat people and not pay the full amount that's owed," said Merlin. "I've devoted my adult life to this and I believe that, regardless if they go to my law firm or any other law firm anywhere, it would be really wrong in our society if we allowed insurance companies to cheat people. They shouldn't just let the claim go away because they don't think it's worth the hassle."

Attorney Chip Merlin says many attorneys don't charge to review the merits of a claim, and will work on contingency. He says as the deadline for Katrina suits loomed in Louisiana last year, people were lined up outside the courthouse.

The US Supreme Court on Monday heard oral arguments in Cuellar v. United States, 06-1456, where the Court considered "whether merely hiding funds with no design to create the appearance of legitimate wealth is sufficient to support a money laundering conviction" under 18 USC 1956(a)(2)(B)(i). The case involves Humberto Cuellar, who was sentenced to over six years in prison for international money laundering. Cuellar's car was pulled over about 100 miles from the Mexico border and police found over $80,000 in cash hidden in the vehicle. Several justices, including Chief Justice John Roberts, seemed skeptical that the Cuellar's actions met the requirements of the federal money laundering statute. Cuellar is appealing a decisionfrom the US Court of Appeals for the Fifth Circuit upholding his conviction. AP has more.

The Court also heard oral arguments in Warner-Lambert v. Kent, 06-1498, where the Court considered whether federal law preempts a Michigan law that allows personal injury lawsuits against prescription drug manufacturers only when the drug at issue was approved by the US Food and Drug Administration based on the fraudulent submission or withholding of information.

Justice Anthony Kennedy denied a request by the Golden Gate Restaurant Association to suspend the employer contributions while the case awaits an April 17 hearing before an appellate panel.

The city expanded its health care program six weeks ago after winning a ruling from the Ninth U.S. Circuit Court of Appeals in San Francisco. That court allowed city officials to require large and medium-size companies to provide insurance to their employees, at spending levels set by the city, or pay a fee to support care for the uninsured at 22 hospitals and clinics.

The expansion lets San Francisco phase in coverage for about 26,000 residents who were not previously eligible for subsidized care. The city says the program will ultimately cover all 73,000 adult residents who are not poor enough for Medi-Cal or old enough for Medicare. About 12,500 people have enrolled so far, program Director Tangerine Brigham said Thursday.