Norbord settles U.S. antitrust suits

(In U.S. dollars)

TORONTO, May 5 (Reuters) - Norbord Inc (NBD.TO) said on Monday that it would pay $30 million to settle U.S. Antitrust litigation stretching back to 2002, avoiding a long and costly trial.

The suit alleged that Norbord and eight other oriented standboard (OSB) producers violated U.S. and state antitrust laws by agreeing to fix prices and reduce OSB supply from June 1, 2002 to the present.

Norbord said it will make two payments of $15 million each, with the first due July 25 and the second on Oct. 24.

The settlement is subject to court approval.

The company also said it will pay $2.2 million into an escrow account for indirect purchasers of OSB.

But the company said it "vigorously contested the plaintiffs' allegations and vehemently denies that it violated U.S. Antitrust or any other laws."

However, Norbord decided to make the payments to "limit the risks and costs associated with a prolonged trial."

"The decision to settle was both difficult and disappointing," Barrie Shineton, president and chief executive, said in a statement.

"We are certain that Norbord has not violated the law," he said. "However, jury trials are inherently unpredictable and we could not guarantee a positive verdict. Given this risk, the magnitude of the plaintiffs' claims and the fact that any damages would be tripled under U.S. Antitrust law, going to trial would have been irresponsible because it would have put the entire company at risk." ($1=$1.02 Canadian) (Reporting by Scott Anderson; Editing by Bernadette Baum)