Pacific Lumber Resolves $1B In Qui Tam Claims

Law360, New York (February 11, 2008, 12:00 AM EST) -- The debtors in Pacific Lumber Co.'s Chapter 11 case have drastically reduced their potential liabilities, agreeing to pay a tiny sum to resolve several claims stemming from two qui tam lawsuits that sought up to $1 billion from the bankrupt timber company and its affiliates.

The debtors filed a motion seeking court approval of the settlement Friday in the U.S. Bankruptcy Court for the Southern District of Texas. A hearing on the agreement has been scheduled for Feb. 28.

Under a joint stipulation, the nine nondischargeable...
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