Deutsche Bank Securities to pay $20 million to LP
In a Dec. 3 filing with the Securities and Exchange Commission (SEC), Louisiana-Pacific (LP) announced it will receive a $20 million payment from Deutsche Bank Securities to settle a lawsuit between the two companies. Deutsche Bank Securities will pay the sum without admitting any liability or wrong-doing, and LP will dismiss the legal proceedings with prejudice. Each company will release the other from all claims and liabilities arising out of the sale and purchase of the auction rate securities.
Although the SEC filing does not go into great detail about the lawsuit, it does say that Deutsche Bank Securities acted as Initial Purchaser and Initial Broker-Dealer in LP’s purchase of certain auction rate securities underwritten by Deutsche Bank Securities.