Oklahoma City-LSB Industries, Inc. and its subsidiary, Cherokee Nitrogen Co., entered into a settlement agreement and release on Sept. 24, 2007, with Dynegy Inc.; Dynegy’s subsidiary, Dynegy Marketing and Trade (DMT); and Nelson Brothers, LLC to settle a lawsuit – Nelson Brothers, LLC v. Cherokee Nitrogen v. Dynegy Marketing, pending in Alabama state court in Colbert County, Ala. (GM Nov. 11, 2004, p. 1). Dynegy filed a counterclaim against CNC for $580,000 allegedly owed on account, which has been recorded by CNC. The settlement will result in the dismissal with prejudice of all matters in the lawsuit and the payment to CNC of approximately $2.7 million, as well as allow CNC to retain the disputed $580,000 account payable. CNC had alleged Dynegy was responsible for fraudulently causing artificially high natural gas prices. There was no admission of guilt in the settlement, nor was there when Dynegy settled similar allegations with the Commodity Futures Trading Commission for $5 million in late 2002.
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