Kobe Steel Ltd.'s legal problems are just beginning in wake ofthe company's disclosure that it falsified data for years about thedurability of aluminum and copper used in airplanes, trains andvehicles.

The Japanese company, which supplies many of that country's topautomakers, is likely to be targeted by investors, customers,consumers and regulators—both in its home country and in theU.S.—as the fallout continues from its admission this week,according to plaintiffs' lawyers and legal experts.

The company's admission Sept. 8 that it may have providedsubstandard metals to more than 200 manufacturers spurred a flurryof internal probes by customers including Toyota, Honda and Subaruinto whether they had problem parts. Kobe Steel's share priceplunged 36% and the cost to insure its debt againstdefault soared since the news unfolded.