Bank to pay LP $20M in auction-rate case settlement

Local manufacturer had sued Deutsche, others in 2009

Louisiana-Pacific will soon get a $20 million check from Deutsche Bank Securities as part of a settlement of litigation between the parties that stems from the financial markets meltdown of 2008.

Nashville-based LP and Deutsche last Friday agreed on the settlement, which also comprises the dismissal of LP's suit against the bank over auction-rate securities as well as a mutual release of future claims. LP had brought its case in a California federal court in 2009 against Deutsche as well as an institutional dealer and some Merrill Lynch entities after it had incurred millions of losses in its auction-rate portfolio. The company's first case was dismissed in the spring of last year but a judge allowed LP officials to restate their case.

Shares of LP (Ticker: LPX) were up slightly in Monday morning trading around $17.50. They've more than doubled year to date and are at their highest point in more than five years.