Louisiana-Pacific Corp., Nashville, TN, reached a settlement with building distributors that filed a class-action suit that included the manufacturer. The class-action, filed in 2006, claimed LP and five other manufacturers of Oriented Strand Board kept prices artificially high by conspiring to keep production low in times of high demand.
Under the terms of the agreement, LP will pay $44.5 million into an escrow account for direct buyers of the product. In addition, the company agreed to pay $2.3 million to indirect purchasers of OSB.
LP, which denies any wrongdoing, agreed to the settlement "to limit the risks and costs associated with at least two lengthy jury trials."
The agreements are subject to court approval.
CEO Rick Frost said: "We were prepared to continue to vigorously defend this matter and believe we would have prevailed. However, because of the unpredictable nature of the judicial process and the inherent risks surrounding a jury trial, a positive verdict could not be guaranteed."
LP is a manufacturer of commodity and specialty building products for retail, wholesale, homebuilding and industrial customers.