Aluminum producer Alcoa Inc settled a civil litigation with Aluminium Bahrain BSC by agreeing to pay USD 85 million in cash. The lawsuit was pending in the US District Court for the Western District of Pennsylvania since 2008.

Alcoa did not admit any liability. The settlement amount will be paid in two installments with one half made at settlement and the other half will be made one year later.

Alcoa noted that the settlement represents the best possible outcome and avoids the time and expense of complex litigation.

Alcoa recorded USD 40 million charge in the third quarter in addition to the USD 45 million charge recorded in the Q2. Alcoa estimates an additional possible after-tax charge of about USD 25 million to USD 30 million to reflect an agreement between the shareholders of Alcoa World Alumina LLC regarding the cash costs of the settlement of the Alba civil lawsuit.

Source - RTT News.com

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