Suits By, Against Milli Vanilli Remain : Courts: More than lip service may be paid when lingering legal claims against Pilatus, Morvan, their producer and record company are resolved.

The legal fallout from the Milli Vanilli fiasco continues, with no end in sight.

A U.S. Circuit Court judge in Chicago is expected Jan. 29 to grant final approval to an unprecedented settlement to resolve a class-action fraud lawsuit filed in November, 1990, against Milli Vanilli front men Robert Pilatus and Fabrice Morvan, Germany-based producer Frank Farian and their record company.

If Judge Thomas O’Brian approves the settlement, it could take effect in February and potentially cost Arista Records and its parent company, Bertelsmann Music Group, millions of dollars.

Approval of the agreement also could lead to the resolution of more than a dozen similar claims pending in courts across the nation. Several class-action claims in Philadelphia, Los Angeles and Baton Rouge, La., were dismissed or denied last year.

Under the terms of the Chicago settlement, Arista and BMG would offer a $1 refund on Milli Vanilli singles, $2 on cassettes and vinyl albums and $3 on compact discs to fans who submit a bar-code identification tag from merchandise purchased before Nov. 27, 1990.

Also, consumers who bought tickets for Milli Vanilli concerts before that date would be entitled to a refund of 5%--not to exceed $2.50.

Officials at Arista and BMG deny they had any knowledge of the lip-sync fraud before its revelation in November, 1990, and say that the settlement offer is a gesture by the companies to rectify the situation.

Farian--who masterminded the Milli Vanilli sham--has agreed to absorb some of the costs if the Chicago settlement proposal is approved, but said Tuesday that he intends to pass a portion of those costs on to Pilatus and Morvan.

Meanwhile, Pilatus and Morvan reportedly filed a multimillion-dollar lawsuit of their own last week in Frankfurt, Germany.

According to their manager, Carsten Heyn, the duo sued Farian, alleging that the producer has withheld a “substantial portion” of their royalty payments since 1989.

Farian denies the charges, suggesting instead that Pilatus and Morvan owe him money.

“The boys were advanced ($4 million) during the years when they were Milli Vanilli,” the 50-year-old producer said Tuesday. “So far, that’s more than what they have earned in record royalties. I don’t know what they’re complaining about. That’s a lot of money for just moving your lips.”