Alcoa Inc (AA.N) will pay $85 million in cash and enter long-term raw material supply contracts with Aluminum Bahrain ALBH.BH (Alba) to settle the Bahraini firm's racketeering and fraud lawsuit against Alcoa, the companies said on Tuesday.
Alba had accused Alcoa in U.S. federal court of conspiring with a businessman to orchestrate bribes in Bahrain and to overcharge it for alumina, the crucial material used to make aluminum. Alba had sought damages in excess of $1 billion.
Alcoa admitted no liability in the settlement but still faces investigations by the U.S. Justice Department and the Securities Exchange Commission into the allegations.
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