NL NL Industries Inc

On July 24, 2019, the court in County of Santa Clara v. Atlantic Richfield Company, et al . (Superior Court of the State of California, County of Santa Clara, Case No. 1-00-CV-788657) signed an order and judgment approving a global settlement agreement entered into among all of the plaintiffs and the three co-defendants (the Sherwin Williams Company, ConAgra Grocery Products and the registrant), and dismissing the case with prejudice.  The global settlement agreement provides that an aggregate $305 million will be paid collectively by the three co-defendants in full satisfaction of all claims resulting in a dismissal of the case with prejudice and the resolution of (i) all pending and future claims by the plaintiffs in the case, and (ii) all potential claims for contribution or indemnity between the registrant and its co-defendants in respect to the case.

Under the terms of the global settlement agreement, each defendant must pay an aggregate $101.7 million to the plaintiffs as follows: $25 million within sixty days of the court’s approval of the settlement and dismissal of the case, and the remaining $76.7 million in six annual installments beginning on the first anniversary of the initial payment ($12 million dollars for the first five installments and $16.7 million for the sixth installment).  The registrant’s sixth installment will be made with funds already on deposit at the court that are committed to the settlement, including all accrued interest at the date of payment, with any remaining balance to be paid by the registrant (and any amounts on deposit in excess of the final payment would be returned to the registrant).

The case was brought in 2000 by a number of California government entities against defendants and others asserting various claims, including public nuisance, property damage, personal injury, strict liability, negligence, trespass, fraud and other claims relating to lead paint.  The registrant expressly denies any and all liability in the agreement.