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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 2002

                                       OR

              [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                        Commission file number 000-24711

                             EBS LITIGATION, L.L.C.
             (Exact name of registrant as specified in its charter)

                Delaware                                   13-3989964
     (State or other jurisdiction of                    (I.R.S. Employer
     incorporation or organization)                  Identification Number)

             90 Park Avenue
        New York, New York 10016
  (Address of principal executive offices)

                                 (212) 682-7474
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [_]

At May 1, 2002 there were 10,000,000 Class A Membership Units outstanding and no
Class B Membership Units outstanding.

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                         PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

                             EBS LITIGATION L.L.C.
                            Statement of Operations
                         -----------------------------

                                                     For the three months ended
                                                             March 31,
                                                        2002           2001
                                                     (unaudited)    (unaudited)

Income:
   Interest                                                4,136        18,912
                                                      ----------    ----------


Expenses:
   Legal and accounting fees                             243,750        58,500
   Insurance                                              17,260        17,260
   Transfer agent and settlement
    administration fees                                    9,500         9,500
   Manager fees                                            4,640         7,249
   Other                                                     800           700
                                                      ----------    ----------

       Total expenses                                    275,950        93,209
                                                      ----------    ----------

Net loss                                              $ (271,814)   $  (74,297)
                                                      ==========    ==========

Net loss per unit - primary and diluted               $     (.03)   $    (.007)
                                                      ==========    ==========

   The accompanying notes are an integral part of these financial statements.

                                      -2-

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                             EBS LITIGATION L.L.C.
                                 Balance Sheet
                      ------------------------------------

                                                        March 31,   December 31,
                                                           2002         2001
                                                       (unaudited)
Assets
Cash and cash equivalents
 available for general operations                      $1,192,627    $1,209,813
Prepaid insurance                                          34,137        51,397
Interest receivable                                         1,416         2,084
                                                       ----------    ----------

     Total assets                                      $1,228,180    $1,263,294
                                                       ==========    ==========

Liabilities
 Accrued expenses                                      $  384,573    $  147,873
                                                       ----------    ----------

     Total liabilities                                    384,573       147,873
                                                       ----------    ----------

Members' equity
 Membership Units (Class A - 10,000,000 authorized,
 issued and outstanding at March 31, 2002
 and December 31, 2001)
 Retained earnings                                        843,607     1,115,421
                                                       ----------    ----------

     Total members' equity                                843,607     1,115,421
                                                       ----------    ----------

                                                       $1,228,180    $1,263,294
                                                       ==========    ==========

   The accompanying notes are an integral part of these financial statements.

                                       -3-

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                             EBS LITIGATION, L.L.C.
                     Statement of Changes in Members' Equity
    For the Period Ended March 31, 2002 and the Year Ended December 31, 2001
    ------------------------------------------------------------------------

                                         Class A
                                        Membership     Retained
                                           Units        Deficit        Total

Balance, January 1, 2001                10,000,000   $ 1,507,175    $ 1,507,175

Current year loss                                -      (391,754)      (391,754)
                                       -----------   -----------    -----------

Balance, December 31, 2001              10,000,000     1,115,421      1,115,421

Current period loss (unaudited)                  -      (271,814)      (271,814)
                                       -----------   -----------    -----------

Balance, March 31, 2002 (unaudited)     10,000,000   $   843,607    $   843,607
                                       ===========   ===========    ===========

   The accompanying notes are an integral part of these financial statements.

                                       -4-

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                             EBS LITIGATION, L.L.C.
                            Statement of Cash Flows
               --------------------------------------------------

                                                     For the three months ended
                                                             March 31,

                                                         2002          2001
                                                     (unaudited)    (unaudited)

Cash flows from operating activities:
    Net loss                                         $  (271,814)   $   (74,297)
    Reconciliation of net loss to cash flows
     used in operating activities:
       Decrease in prepaid insurance                      15,844         17,260
       Decrease in miscellaneous receivables                   -          5,000
       Decrease in interest receivable                     2,084          1,452
       Increase in accrued expenses                      236,700         49,549
                                                     -----------    -----------

         Cash flows used in operating activities         (17,186)        (1,036)
                                                     -----------    -----------

Net decrease in cash and cash equivalents                (17,186)        (1,036)

Cash and cash equivalents at beginning of period       1,209,813      1,545,066
                                                     -----------    -----------

Cash and cash equivalents at end of period           $ 1,192,627    $ 1,544,030
                                                     ===========    ===========

   The accompanying notes are an integral part of these financial statements.

                                      -5-

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EBS Litigation, L.L.C.
Notes to Financial Statements
March 31, 2002 and December 31, 2001
--------------------------------------------------------------------------------

1.   Description of business

     EBS Litigation, L.L.C. (the "Company") is governed by a Members Agreement,
     dated as of September 25, 1997 (the "Members Agreement"). Pursuant to the
     Members Agreement, the Company's purposes are to (a) prosecute, settle
     and/or liquidate the Unresolved Avoidance Claims relating to the
     distribution by Edison Brothers Stores, Inc. ("Edison") of approximately
     4.4 million shares of common stock of Dave & Busters, Inc. to holders of
     Edison common stock in the form of a dividend and all related transactions
     (the "Unresolved Avoidance Claims"), (b) receive, and administer the cash
     proceeds of the Unresolved Avoidance Claims, and (c) distribute the net
     proceeds to the appropriate holders of Membership Units (the "Members") in
     accordance with the Members Agreement.

2.   Summary of Significant Accounting Policies

     This summary of significant accounting policies is presented to assist in
     evaluating the Company's financial statements included in this report.
     These principles conform to generally accepted accounting principles. The
     preparation of financial statements in conformity with generally accepted
     accounting principles requires that management make estimates and
     assumptions which impact the reported amounts of assets and liabilities at
     the date of the financial statements and the reported amounts of revenues
     and expenses during the reporting period. Adjustments are of a normal
     recurring nature. Actual results could differ from those estimates.

     Basis of Presentation
     These financial statements include the accounts of the Company for the
     periods from January 1, 2001 through December 31, 2001, January 1, 2001
     through March 31, 2001 (unaudited) and January 1, 2002 through March 31,
     2002 (unaudited).

     Cash and Cash Equivalents
     Cash consists of amounts held in an account in the Company's name at a
     highly-rated financial institution, which funds are invested in an
     institutional money market fund investing solely in direct obligations of
     the United States Government.

     The Company's cash and cash equivalents represent the sum of the aggregate
     Dave and Busters, Inc. Spinoff Settlement Proceeds and the L.L.C. Funding
     Amount. These funds will be used for general operations. Any amounts not
     used in general operations will be made available for future distributions
     to Class A Membership Unit holders.

     Accrued Expenses
     Accrued expenses include amounts payable to service providers and other
     vendors. Amounts are payable within one year.

     Defendant Payment Revenue
     Defendant payment revenue is determined on an accrual basis and represents
     settlements with individual defendants of Avoidance Claims during the
     period.

     Interest
     Interest income is determined on the accrual basis. Interest receivable is
     due to be received within one year.

     Expenses
     All expenses of the Company are recorded on the accrual basis of
     accounting.

                                       -6-

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EBS Litigation, L.L.C.
Notes to Financial Statements
March 31, 2002 and December 31, 2001
--------------------------------------------------------------------------------

     Income Taxes
     The Company is not subject to income taxes. Instead, the Members report
     their distributive share of the Company's profits and losses on their
     respective income tax returns.

3.   Members' Equity

     On September 25, 1997, Edison transferred its rights, title and interest in
     the Unresolved Avoidance Claims. In addition, as of September 25, 1997,
     Edison was obligated to provide cash funding to the Company of $2.0 million
     (the "LLC Funding Amount"), which was subsequently paid to the Company on
     October 16, 1997. Such transfer and funding were in exchange for 10,000,000
     Class B Membership Units of the Company, which represented all of the
     outstanding Membership Units of the Company. On December 12, 1997, in
     accordance with the Company's Members Agreement and the Plan of
     Reorganization, Edison exchanged 9,064,140 Class B Membership Units for
     9,064,140 Class A Membership Units of the Company and simultaneously
     distributed such Class A Membership Units to holders of Allowed General
     Unsecured Claims (as defined in the Plan).

     During 1998, Edison exchanged 936,138 Class B Membership Units for 936,138
     Class A Membership Units of the Company and simultaneously distributed such
     Class A Units to holders of Allowed General Unsecured Claims.

     During 1998, the Company distributed $13.7 million to holders of Class A
     Membership Units. In addition, $0.8 million was retained for holders of the
     Class A Membership Units that were distributed in December 1998.

     Also during 1998, certain Class A Membership Unit holders returned 278
     Class A Membership Units to Edison as such Membership Units had been
     distributed in error. The distribution proceeds relating to these returned
     Membership Units are included in retained earnings and were made available
     for future distribution to holders of Class A Membership Units. At December
     31, 1999, Edison has no Class B Membership Units outstanding.

     On February 1, 1999, the Company distributed the $0.8 million of reserved
     amounts of D&B Spinoff Settlement Proceeds (as defined in the Plan) to the
     holders of the Class A Membership Units that were distributed in November
     and December 1998. This represents the entire amount of funds reserved for
     future holders of Class A Membership Units.

     During the first quarter of 2002, the Company did not make any
     distributions to holders of Class A Membership Units.

                                       -7-

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Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

          The following is a discussion and analysis of the financial condition
and the results of operations of the Company as of and for the years ended
December 31, 2001, 2000, 1999 and 1998 and as of and for the periods ended
December 31, 1997, January 1, 2002 through March 31, 2002 (unaudited) and
January 1, 2001 through March 31, 2001 (unaudited), and of certain factors that
may affect the Company's prospective financial condition and results of
operations. This discussion and analysis should be read in conjunction with the
Company's Financial Statements and Notes thereto included elsewhere herein and
included in the Company's Annual Report and Form 10-K for the year ended
December 31, 2001. This discussion contains certain forward-looking statements
that involve risks and uncertainties. The Company's actual results could differ
materially from the results expressed in, or implied by, such statements.

Results of Operations/Overview

          The Company, which was formed pursuant to the Amended Joint Plan of
Reorganization Under Chapter 11 of the U.S. Bankruptcy Code filed by the Debtors
(the "Plan") and the Members Agreement, is a limited purpose entity organized
solely for the purposes of (a) prosecuting, settling and/or liquidating the
Unresolved Avoidance Claims, (b) receiving and administering the proceeds from
the Unresolved Avoidance Claims (the "Avoidance Claim Proceeds"), and (c)
distributing the net Avoidance Claim Proceeds to holders of the Company's Class
A Membership Units pursuant to the terms of the Members Agreement. The Company
commenced its activities on September 25, 1997.

          On October 16, 1997, the Company received the L.L.C. Funding Amount of
$2 million. The Company recognizes income from amounts received from the
prosecution, settlement and liquidation of the Unresolved Avoidance Claims. To
date, the Company has only received settlement amounts. During the period ended
December 31, 1997, the Company received approximately $10.0 million in D&B
Spinoff Settlement Proceeds. The D&B Spinoff Settlement Period was to initially
expire on October 27, 1997, at which time the Company had received approximately
$7.8 million in D&B Spinoff Settlement Proceeds. However, many defendants were
not able to accept the D&B Spinoff Settlement by the initial deadline for
reasons including, without limitation, (a) the time lag attendant to the
transmission of settlement-related documents from record holders to their
beneficial holders, and (b) the desire of certain D&B Spinoff Stockholders to
consult with counsel or other advisors prior to participating in the D&B Spinoff
Settlement. The Manager therefore decided that an extension of the D&B Spinoff
Settlement Period was in the best interests of the Company. The extension
permitted the recovery of additional D&B Settlement Proceeds of approximately
$2.2 million between October 27, 1997 and December 31, 1997, approximately $5.0
million for the year ended December 31, 1998 and none for the years ended
December 31, 2001, 2000 and 1999. The Company did not recover any funds for the
period ended March 31, 2002. The Company expects to recognize defendant payment
revenue in future periods as the Unresolved Avoidance Claims are prosecuted,
settled further, or both. However, there can be no assurance that the Company
will recognize any further defendant payment revenue.

          The Company also recognizes income from interest earned on Avoidance
Claim Proceeds. The Company invests Avoidance Claim Proceeds in a money market
fund investing solely in direct obligations of the United States Government. The
Members Agreement permits all funds received by the Company to be temporarily
invested in United States treasury bills and notes with maturities of 12 months
or less, institutional money market funds, and demand or time deposits with U.S.
federal or state commercial banks having primary capital of not less than $500
million. During the years ended December 31, 2001, 2000, 1999 and 1998, and the
period ended December 31, 1997, the Company recognized approximately $50,000,
$101,000, $92,000, $388,000 and $106,000 of interest income, respectively.
During the three month periods ended March 31, 2002 and 2001, the Company
recognized approximately $4,100 and $19,000 of interest income, respectively.
The amount of interest income recognized by the Company in future periods will
be dependent on, among other things, (1) fluctuations in interest rates, (2) the
amounts and timing of any Avoidance Claims Proceeds received in the future, (3)
the amounts and timing of any distributions to holders of Class A Membership
Units, and (4) the amount and timing of the Company's expenses.

                                       -8-

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          The Company's expenses consist primarily of fees payable to the
Company's lawyers and accountants, insurance expenses, the Transfer Agent and
the Manager. The Company had expenses of approximately $442,000, $489,000,
$299,000, $671,000 and $176,000 for the years ended December 31, 2001, 2000,
1999 and 1998, and the period ended December 31, 1997, respectively. During the
three month periods ended March 31, 2002 and 2001, the Company had expenses of
approximately $275,950 and $93,209, respectively. These expenses are expected to
fluctuate in future periods primarily based on activity in any period in the D &
B Spinoff Litigation.

          The Company and EBS Pension, L.L.C. (another limited liability company
formed pursuant to the Plan) have agreed to indemnify the Debtors (as defined in
the Plan) and their present or former officers, directors and employees from and
against any losses, claims, damages or liabilities by reason of any actions
arising from or relating to the Company and any actions taken or proceeding
commenced by the Company (other than with respect to any Unresolved Avoidance
Claims that the Company may have against such persons other than in their
capacities as officers, directors or employees of the Debtors). Indemnification
must first be sought from any applicable officers' and directors' insurance
policy, and then from the $1.5 million reserve established by EBS Pension L.L.C.
Although to date there has not been any indemnification claim, there can be no
assurance such a claim will not be made in the future. All liabilities of the
Company, including the foregoing indemnification obligations, will be satisfied
from the Company's assets.

          At December 31, 2001, 2000, 1999, 1998 and 1997, the Company had cash
and cash equivalents of approximately $1.2 million, $1.5 million, $1.9 million,
$3.0 million and $12.0 million, respectively. At March 31, 2002, the Company had
cash and cash equivalents of approximately $1.2 million. During 2001, the
Company made no distributions to holders of Class A Membership Units. The
Company made no distributions to holders of Class A Membership Units during the
three month period ending March 31, 2002. The amount and timing of any future
distributions of Avoidance Claim Proceeds will be determined by the Manager in
accordance with the term of the Members Agreement. There can be no assurance as
to the amount (if any) of any further distributions that will be made.

          The Company's lawyers completed third-party discovery, including
depositions of former officers and directors of Edison, and third-party
discovery closed on March 31, 2000, pursuant to court order. On or about March
29, 2000, the Class Representatives (D&B Stock is held by approximately 2,500
different individuals and entities (the "Class"). The Class includes Barclays
Global Investors, N.A., Greentree Partners, and Greenway Partners, which are
referred to herein as the "Class Representatives.") filed a third-party
complaint against former directors of Edison (the "Edison Third-party
Defendants"), former and current directors of Dave & Busters, Inc. and against
Dave & Busters, Inc. (the "D&B Third-party Defendants" and collectively with
Edison Third Party Defendants, the "Third-party Defendants"). The complaint
purports to allege claims for breach of fiduciary duties, aiding and abetting
breaches of fiduciary duties, and for contribution or "subrogation." Because
these claims might have implicated the indemnification provisions described
above, the claims were reviewed in detail by the Company's lawyers, and found to
be without substantial merit. While there can be no assurances of the Company's
success, the Company intends to oppose joinder of these claims in the D & B
Spin-off Litigation (as defined in the Plan).

          In June 2000, the Third-party Defendants each filed a motion to
dismiss the third-party complaints against them ("Motions to Dismiss"). The
Company filed a joinder in those Motions to Dismiss. On August 21, 2000, the
Court held a hearing on the Motions to Dismiss and other matters. By Order dated
as of August 28, 2000, the Court granted the Motions to Dismiss in part, and
denied them in part. The Court dismissed the breach of fiduciary duty claims and
the related claims for aiding and abetting breach of fiduciary duty, finding the
claims, if any, barred by the statute of limitations. However, the Court denied
the Motion to Dismiss the purported contribution and/or "subrogation" claim.
Because of certain inconsistencies in the Court's rulings, the Third-party
Defendants moved for clarification, reconsideration, or in the alternative,
interlocutory (immediate) appeal ("Motions for Reconsideration"). The Company
filed a limited joinder in those Motions for Reconsideration, and the Class
filed its opposition. The Court has not set a date for deciding these Motions
for Reconsideration.

          In July 2000, the Class Representatives also filed a Motion to Amend
the Order Certifying the Defendant Class ("Motion to Amend"). In this Motion to
Amend, the Class Representatives seek to add absent class members as named class
representatives. The Company opposed this Motion to Amend on the grounds that:
(i) the Class Representatives should not have been represented by Class Counsel
in the Motion to Amend against absent class

                                       -9-

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members; (ii) there was no showing of need to add named class representatives;
and (iii) the adding of certain absent class members as named class
representatives could create unnecessary conflicts for the Company's lawyers to
the substantial prejudice of the Company. Two of the proposed named class
representatives, Mellon Bank and Boston Safe Deposit, related entities, filed
substantive objections to the Motion to Amend on similar grounds. On August 21,
2000, the Court heard argument on the issues presented by the Motion to Amend
and took the matter under advisement. The Court has not indicated when it will
rule on the Motion to Amend.

          In September 2000, the Company filed a motion with the United States
Bankruptcy Court, District of Delaware to reopen the bankruptcy case of Edison
Brothers Stores, Inc. for the limited purpose of extending the term of the
Company. Section 1.4 of the Company's Members Agreement limits the Company's
existence to three years subject to extension(s) approved by the Bankruptcy
Court for good cause shown. Therefore, the Company's existence was set to expire
on September 26, 2000 unless extended by the Bankruptcy Court. In its motion,
the Company argued that the Company's members would be best served by permitting
the Company to remain a going concern. The Bankruptcy Court granted the
Company's motion to extend the existence of the Company for an additional
two-year term.

          On January 22 and 23, 2002, the D&B Spinoff Litigation was tried
before Judge Robinson in the United States District Court for the district of
Delaware. It is anticipated that the Court will decide the case at some point
after completion of post-trial briefing in April 2002. The Company continues to
prosecute the D&B Spinoff Litigation vigorously, and to pursue the maximum
available recoveries. While there can be no assurances as to the Company's
ultimate total recovery given the uncertainties associated with litigation, at
this juncture it is estimated that such recoveries will exceed the costs of
further prosecuting the D&B Spinoff Litigation.

          The Company is classified as a partnership for federal income tax
purposes and, therefore, does not pay taxes. Instead, the Members pay taxes on
their proportionate share of the Company's income.

Quarterly Results

Three Months Ended March 31, 2002 Compared to the Three Months Ended March 31,
2001

          The decrease in revenue for the current quarter compared to the first
quarter of last year was due to a reduction of interest income from cash and
cash equivalents.

          Total expenses increased $182,741 due primarily to an increase in
legal fees due to the increase in litigation activity during the period.

                                      -10-

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                           PART II. OTHER INFORMATION

Item 1.   Legal Proceedings.

          Other than the D&B Spinoff Litigation referenced elsewhere herein, the
Company is not involved in any legal proceedings.

Item 6.   Exhibits and Reports on Form 8-K.

          (A)      Exhibits          Description

          2.1*     Amended Joint Plan of Reorganization of Edison Brothers
                   Stores, Inc.

          3.1*     EBS Litigation, L.L.C. Certificate of Formation

          3.2*     EBS Litigation, L.L.C. Membership Agreement

*         Incorporated by reference to the same numbered exhibit filed with the
          Registrant's Registration Statement on Form 10 originally filed with
          the SEC on July 29, 1998 (SEC File No. 000-24711).

          (B)      Reports on Form 8-K

                   None.

                                      -11-

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                                   Signatures
                                   ----------

          Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                        EBS LITIGATION, L.L.C.




                                        /s/ Peter N. Wang
                                        ----------------------------------------
                                        Peter N. Wang, Manager

Date: May 14, 2002

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