Metals USA agrees to resolve class action lawsuit
Metals USA Inc announced today (October 11) that it has agreed to resolve a class action lawsuit brought against it in New Castle County, Delaware. The class action is a consolidation of two lawsuits related to the pending acquisition of the company by affiliates of Apollo Management LP. Under the proposed settlement, Apollo will agree to waive its right to receive the termination fee payable under the merger agreement in excess of $13.6 million. The company does not admit to any wrongdoing and says it is entering into the settlement to eliminate the burden of future litigation. The proposed settlement is subject to final approval of the Court and completion of the pending acquisition. Metals USA could not be reached for further comment. Metals USA provides a wide range of products and services in the heavy carbon steel, flat rolled steel, specialty metals, and building products markets.